PART II

Establishment and Administration of the

National Insurance Fund and the National Insurance Corporation

Establishment of National Insurance Fund

3.- (1) There shall be established a Fund to be called the National Insurance Fund into which shall be paid -

(a) all contributions;

(b) all rents, interest, dividends or other income derived from the assets of the Fund;

(d) all sums properly accruing to the Fund under this Act, including the repayment of benefit;

(e) such other sums as may be provided by Parliament for the purposes of this Act or as may be received and accepted by the Board on behalf of the Fund;

(f) all assets and all other funds held in trust or otherwise by the National Provident Fund Board;

(g) any sums transferable to the Fund from any exempted scheme in pursuance of this Act.

(2) There shall be paid out of the Fund -

(a) all benefits;

(b) refunds of contributions;

(d) all liabilities incurred by the National Provident Fund Board;

(e) any expenditure considered by the Director to be necessary for the training or welfare of the officers or employees, including loans, and facilities for leisure or recreation;

(f) any sums expended for carrying out any surveys or research for the purpose of gathering any data which the Director considers necessary for the performance of the functions of the Corporation under this Act;

(g) such sums as the Board may apportion from time to time out of the income from its investments for giving assistance to the aged, disabled or needy persons, notwithstanding that such persons are not contributors under this Act;

(h) any fees, subscriptions or sums for membership, affiliation or contribution to or in any local, regional or international body concerned with national insurance,

(i) all other moneys which the Director may consider to be reasonable and necessary for the proper and efficient performance of the functions of the Corporation;

(j) any other payments authorised under this Act.

Establishment of National Insurance Corporation

4.- (1) The body corporate constituted under section 4 (1) of the National Insurance Act 1978, No. 21 as the National Insurance Board is preserved and continues in existence as a body corporate for the purposes of this Act but is to be known on the coming into force of this Act, as the National Insurance Corporation.

(2) The corporate identity and the rights and obligations of the body

corporate are not affected by the change of name.

(3) The Corporation shall take over, manage, maintain and discharge all assets, liabilities and obligations including all actionable claims held or incurred by the National Provident Fund Board.

(4) The Corporation shall be a body corporate with perpetual succession and a common seal and shall in the corporate name be capable of entering into contracts, of sueing and of being sued, of purchasing or otherwise acquiring, holding, leasing, charging, alienate real or personal property, of lending or borrowing money, and of doing or performing all such acts as bodies corporate may by law do or perform.

(5) The Corporation shall have a Head Office in the City of Castries and may establish other offices within the State as they consider desirable.

(6) Service on the Corporation of any notice, order or other document shall be executed by delivering or by sending the same by registered post addressed to the Director, at the Head Office of the Corporation.

(7) All deeds and agreements relating to the property assets or monies of the Fund shall be signed and sealed by the Board pursuant to a resolution and shall be authenticated by the signature of the Chairman and Director or of such other person as the Board may appoint.

(8) The Seal of the Corporation shall be kept in the custody of the Director and shall not be affixed to any instrument except by a resolution of the Board, and the sealing of any instrument shall be authenticated in the manner described in subsection (7).

(9) The Corporation shall be responsible for administering the Fund in accordance with this Act.

National Insurance Board

5.- (1) There shall be a National Insurance Board which shall be the governing body of the Corporation with authority, in the name of the Corporation, to exercise and perform the functions conferred on the Corporation under this Act.

(2) The First Schedule shall have effect as regards the constitution and proceedings of the Board.

(3) The members of the Board shall be paid out of the Fund such remuneration, expenses and allowances as the Minister from time to time may approve.

Minister’s powers and Board’s duty to give advice and submit annual

reports

6.- (1) The Board shall consider and advise the Minister on all matters from time to time referred to it by him or her and shall give him or her such information as he or she may require regarding the operations of the Corporation.

(2) The Minister may give to the Board such general directions with regard to the Board’s functions under this Act as appear to him or her to be requisite in the public interest and the Board shall give effect to any such directions.

(3) The Board shall render annual reports to the Minister who shall, as soon as possible thereafter, lay a copy before Parliament.

Committees of the Board

7.- (1) The Board may appoint a committee to examine and report to the Board on any matter arising out of any of its functions under this Act.

(2) A committee appointed under subsection (1) shall include not fewer than two members of the Board, and may include persons who are not members of the Board.

(3) Subject to this Act, the composition and functions of a committee of the Board shall be determined by the Board.

(4) The Board may delegate to any member or Committee of the Board or to the Director or any officer of the Board, the power to carry out on its behalf, such functions under this Act as the Board may determine.

(5) Every delegation under this section shall be revocable by the Board and no such delegation shall prevent the exercise by the Board of any delegated function.

Validity of Board’s actions and protection of members

8.- (1) The validity of any act done or proceedings taken under this Act shall not be questioned on the ground of:

(a) the existence of any vacancy in the membership, or of any defect in the constitution of the Board; or

(b) the contravention by a member of the Board of paragraph 15 of the First Schedule; or

(2) No personal liability shall attach to any member of the Board in respect of anything done or omitted in good faith under the provisions of this Act; and any sum of money, damages or costs which may be recovered against any such member in respect of any act or thing done or omitted bona fide under this Act shall be paid out of the funds and resources of the Fund.

(3) The actions outlined in Table B of the Fourth Schedule of the Act and taken by the Board prior to the commencement of this Act which said actions had the express or implied effect of causing a variation to any provision under the repealed Act, and were taken for the purpose of maintaining the viability of the Fund, shall be deemed to have been of valid legal effect.

Power of Board to enter into arrangements with public authorities

9.- (1) The Board may with the consent of Cabinet enter into any arrangement with any government department or any statutory or public body for the registration of insured persons or for the issue or substitution of national insurance cards or for the payment of any benefits or for the performance of any of the Board’s functions under this Act.

(2) Subject to this Act the Board shall have power by resolution to provide for all matters of administration and procedure in the exercise of its functions under this Act.

Appointment, duties and powers of Director

10.- (1) The Board shall with the approval of the Minister appoint a fit and proper person to be the Director of the Fund, who shall be the Chief Executive Officer of the Fund and who shall, subject to this Act, and the general direction of the Board, be responsible for the management of the staff of the Board and for the administration of the Fund and in particular:

(a) the assessment of contributions under this Act and for the collection and payment of contributions and other moneys into the Fund;

(b) the payment out of the Fund of the various benefits under this Act, and of the expenditure necessary for the proper administration of the Fund;

(d) the investment of surplus monies in the Fund as directed from time to time by the Board on the advice of the Investment Committee.

(2) The Director may, in relation to any matter or class of matters under this Act, by writing under his or her hand delegate to any employee of the Corporation any of his or her functions under this Act except his power of delegation under this section.

(3) Every delegation under this section shall be revocable at any time and shall not prevent the performance by the Director of any such delegated function.

Termination of Director’s appointment and resignation

11.- (1) The Board may with the approval of the Minister, terminate the appointment of the Director for inability to exercise the functions of his or her office (whether arising from infirmity of mind or body or from any other cause) or for misconduct.

(2) The Director may resign his or her office by giving to the Board three months notice in writing or such shorter period as the Board may in its discretion agree to accept, of his or her intention so to do and at the expiration of such period, the Director shall be deemed to have resigned his or her office.

Deputy Director

12.- (1) The Board may appoint a fit and proper person to be Deputy Director.

(2) The Deputy Director shall assist the Director in the performance of his or her duties under this Act.

(3) On the occurrence of a vacancy in the office of Director (whether

caused by death, resignation or otherwise) and in the case of illness, absence or temporary incapacity of the Director (from whatever cause arising) and so long as such vacancy, illness, absence or temporary incapacity continues, the Deputy Director shall have and exercise all the functions of the Director.

(4) Where the Deputy Director exercises any functions as aforesaid it shall be sufficient evidence of authority so to do and no person shall inquire whether the occasion has arisen requiring or authorising him or her to do so.

Board to appoint Secretary

13.- (1) The Board shall appoint a fit and proper person to be Secretary to the Board.

(2) The Secretary shall perform such duties as are normally assigned to and consistent with the post of a Corporate Secretary.

Inspectors

14.- (1) The Board may appoint or designate such officers in its service as it thinks fit to be inspectors for the purpose of this Act.

(2) The Director and the Deputy Director shall have the powers of and may perform the functions of an inspector.

(3) Every inspector shall be furnished with an identification card and on entering any premises or place of business for the purposes of this Act, shall produce the identification card.

(4) An inspector shall, for the purposes of this Act, have power to:

(a) enter at all reasonable hours, any premises or places where he or she has reasonable grounds for believing that any persons are employed;

(b) make such examination, inspection, and inquiry as may be necessary for ascertaining whether the provisions of this Act are being or have been complied with in any such premises or places;

(d) examine either alone or in the presence of any other person any matters under this Act, every person whom he or she finds in any such premises or places or whom he or she has reasonable cause to believe can give information regarding the subject matter of the enquiry, (and require such person to be examined) and for the purpose of such examination may summon any such person to attend at a given time at any office of the Corporation.

(5) The occupier of any such premises or place liable to inspection under this section and any other person who is or has been employing any person and the servants or agents of any such occupier or other person and any employed person shall furnish an inspector with all such information and shall produce for inspection all such documents as the inspector may reasonably require for the purpose of ascertaining whether contributions are payable or have been duly paid by or in respect of any person or whether any benefit is or was payable to or in respect of any person.

(6) No person shall be required under this section to answer questions or give evidence tending to incriminate himself or herself.

(7) Nothing in this section shall authorise entry of any premises or place occupied by a department or office of the Government without prior permission by the Head of the department or office concerned.

Appointment of other officers

15.- (1) The Director may from time to time, with the approval of the Board appoint on such terms and conditions as he or she sees fit such other officers as are necessary for the administration of this Act.

(2) Every person appointed under this section shall perform such duties as may be assigned to him or her from time to time by the Director.

Appointment of Legal, Medical Officers and other Advisors

16. The Board may appoint upon such terms and conditions as it considers fit, a legal advisor, a medical officer or any other advisor or person whom the Board considers necessary for the purpose of this Act.

Transfers from the Public Service and vice versa

17.- (1) The Public Service Commission may approve the transfer of any officer from the Public Service to the service of the Corporation and vice versa.

(2) The Board may approve the transfer of any officer in its service to the service of any other statutory authority and vice versa.

(3) Where a transfer has been approved under this section, arrangements shall be made by the Minister, the Corporation or the statutory body as the case may be, to pay to the body receiving the service of such officer, such contributions as may be provided for by Regulations or otherwise in respect of pensions and gratuities and any such Regulations may provide for different categories of officers.

(4) When an officer of the Corporation is on transfer from the Public Service, the Corporation shall make arrangements with the Government for the preservation of the pension rights of such officers.

(5) Arrangements made under subsection (4) shall in appropriate cases include the payment from the Fund into the general revenue of the State such amounts as in the opinion of the Minister approximately represent the accruing liability for the sums which will become payable out of moneys provided by Parliament for the relevant pension benefits.

(6) For the purpose of the Pensions Act 1967, service with the Corporation shall be deemed to be “other public service” as though the Corporation were one of the Scheduled Governments listed in the First Schedule to the Pensions Regulations 1967.

Declaration of secrecy

18.- (1) Every person employed or having any official duty under this Act shall regard and deal with all documents and information pertaining in any manner to the affairs of the Fund and the Corporation as secret and confidential and shall, if so required by the corporation, make and subscribe to a declaration of secrecy in the form prescribed, before a Magistrate.

(2) Except as otherwise provided herein the provisions of section 18 (1) of the Interpretation Act 1968, shall apply to every person appointed under this Part.

Present employees retained

19. The persons appointed or employed by the National Provident Fund Board and the National Insurance Board on the day of the coming into force of this act shall retain their respective appointments and shall be subject to the provisions of this Act.