Interpretation

(1) For the purpose of this Act, and unless the context otherwise requires“account balance” in respect of a member under a defined contribution pension plan means the market value of all employer contributions and member contributions, if any, plus earnings thereon; “actuarial equivalent” for the purpose of determining the lump sum amount that is equivalent to a pension benefit, means the value of the pension benefit certified by an actuary as of a fixed date; “actuary” means a person who– (a) has qualified as an actuary by examination of the Institute and Faculty of Actuaries in the United Kingdom, the Societies of Actuaries in the United States of America or the Canadian Institute of Actuaries, and who is a current member in good standing of one of those professional associations; or 8 (b) is a Fellow of a professional body of actuaries which is internationally recognised and who is, in the opinion of the Supervisor, suitable for recognition as an actuary for the purposes of this law; “additional voluntary contribution” means a contribution to the pension fund by a member of the applicable pension plan beyond any amount that the member is required to contribute; “administrator” means the person or persons that administer the “affiliated employer” has the meaning given in sub-section (2); “ancillary benefit” has the meaning given in section 25; “approved provider” means an insurance company or other company lawfully licensed to undertake pension plans in Belize; “beneficiary” means the person who has been appointed in writing by a member or former member as the beneficiary for the purposes of the applicable pension plan; “commencement date” means the date on which this Act comes into operation “common law union” means the relationship that is established when a man and woman who are not legally married to each other and to any other person cohabit together continuously as husband and wife for a period of at least five years; “court” means the Supreme Court; “custodial agreement” means a trust agreement or insurance contract providing that9 (a) an investment made or held on behalf of a pension plan pursuant to the agreement or contract– (i) constitutes part of the plan’s pension fund; and (ii) shall not at any time constitute an asset of the custodian; and (b) records shall be maintained by the custodian that are sufficient to allow the ownership of any investment to be traced to the plan at any time; “custodian” means a trustee or insurance company that holds the assets of a pension plan under a custodial agreement; “deferred pension” means a pension benefit to which a former member is entitled, payment of which is deferred until the former member reaches normal retirement age under the “defined benefit” means a pension benefit determined in advance with reference to various factors including level of earnings and length of employment, or any other benefit that is not a defined contribution benefit; “defined benefit pension plan” means a plan providing a defined “defined contribution benefit” means a pension benefit that is determined solely with reference to, and is provided by, accumulated contributions made by or for the credit of a member together with the investment yield of such accumulated contributions and that is determined on an individual account basis and “defined contribution pension plan” means a pension plan providing a defined contribution benefit; 10 “disabled” in relation to a member means unable because of a physical or mental condition to perform most or all of the tasks related to that member’s employment; “employee” means a natural person in Belize who is employed by an employer, and includes a self-employed person; “employer” means an individual or entity in Belize that employs employees, and includes a self-employed person; “entity” includes a body corporate, partnership, or other unincorporated association; “financial institution” meansCAP. 263. (a) a bank licensed under the Domestic Banks and Financial Institutions Act; CAP. 251. (b) an insurer licensed under the Insurance Act; CAP. 314. (c) a credit union licensed under the Credit Unions Act; or (d) any company approved by the Supervisor for the purposes of this Act. “financial institution pension plan” means a pension plan established by a financial institution and approved by the Supervisor to offer a defined contribution pension plan for individuals, whether employees or not; “former member” means a member who has terminated employment applicable to or membership in a pension plan and– (a) is entitled to a deferred pension payable from the pension fund; (b) is in receipt of a pension payable from the pension fund; or 11 (c) is entitled to receive any other payment from the pension fund; “initial valuation date” means the valuation date of the initial valuation report; “initial valuation report” means the report referred to in section 7(2). “insurance contract”, means an insurance contract that is approved by the Supervisor and is issued by a company authorized to carry on a life insurance business in Belize and under which the funds held under the contract are segregated for the benefit of the plan; “member”, in relation to a pension plan, means a person who is or may become entitled to a pension benefit or refund of the person’s contributions under the pension plan as a result of the person’s employment; “multi-employer pension plan” means a pension plan established and maintained for employees of two or more employers who are not affiliated employers and who contribute or on whose behalf contributions are made to a pension fund in accordance with an agreement between the employers, but does not include a financial institution pension plan; “Minister” means the Minister responsible for pensions; “normal retirement date” means the normal retirement age specified in the pension plan stipulated under section 22; “pension” means a pension benefit that is in payment; “pension benefit” means the periodic payment due to a person in accordance with the rules of a pension plan, including any early retirement or other ancillary benefits provided under the pension plan; “pension fund” means the fund maintained to provide benefits under or related to the pension plan; 12 “pension plan” means an occupational retirement scheme organized and administered to provide pensions for employees, or a financial institution pension plan; “registration” means registration under this Act; “regulations” means regulations made under this Act; “spouse” means a man or a woman who is married to or in a common law union with a member at the relevant time, being a person who is of the opposite sex to the member, but does not include such a person who is living separate and apart from the member; “statement of investment policy” means the statement of investment policy in relation to a pension plan, referred to in section 35; “Supervisor” means the Supervisor of Pensions appointed under section 55; “surplus” in respect of– (a) an ongoing defined benefit pension plan, means the amount by which the assets of the plan exceed the liabilities of the pension plan where; (i) the assets of the plan are calculated on the basis of the market value of the investments held by the fund plus any cash balances and accrued or receivable items; and (ii) the liabilities of the plan are calculated to be the greater of the going concern liabilities and the solvency liabilities; 13 (b) an ongoing defined benefit pension plan that is or is being wound up, means the amount by which the assets of the plan exceed the solvency liabilities where the assets of the plan are calculated on the basis of the market value of the investments held by the fund plus any cash balances and accrued or receivable items; and (c) a defined contribution pension plan, means the forfeited employer contributions that have not yet been allocated. “termination” in relation to– (a) employment, includes retirement and death; and (b) winding up of a pension plan, means the cessation of the accrual of benefits under the plan by members of the plan; “winding up”, in relation to a pension plan, means the distribution of the assets of the pension plan after the plan is terminated. (2) For the purposes of this Act, “affiliated” in relation to an employer, means that the employer is affiliated with another employer by virtue of both employers being companies and– (a) one of them is the subsidiary of the other; (b) both are subsidiaries of the same company; or (c) each of them is controlled by the same person. (3) The requirements of this Act and the regulations shall not be construed to prevent the registration or administration of a pension plan and related pension fund that provide pension benefits or ancillary benefits more advantageous to members and former members than those required by this Act and the