Establishment of Social Security Fund

(1) For the purpose of this Act there shall be established under the control and overall management of the Board a Fund called the Social Security Fund. (2) There shall be paid into the Fund– (a) all contributions; (b) all rent, interest, dividend and investment and other income derived from the assets of the Fund; (c) all sums recovered for the Fund under this Act; (d) all sums properly accruing to the Fund under this Act including, without prejudice to the generality of the foregoing, the repayment of (e) any sums approved by the National Assembly for the purposes of this Act. (3) There shall be paid or met out of the Fund– (a) all claims for benefits; (b) all contributions which fall to be refunded under this Act; or (c) all expenses properly incurred in the administration of this Act, including moneys expended on the purchase of real property and 43 disbursements by way of remuneration, allowances and expenses. (3A) After fulfilling its obligations under sub-section (3), the Board may, with the approval of the Minister, utilise, by way of grants or otherwise, a part of the surplus, if any, for social development purposes, subject to such conditions and limitations as may be prescribed by the regulations. (4) Regulations shall provide for the financial organisation of the moneys of the Fund by– (a) the establishment and maintenance of different autonomous branches for different purposes; or (b) the establishment and maintenance within the branches of different reserve funds. (5) Any money forming part of the reserves of the Fund may from time to time be invested by the Board in accordance with the Investment Framework set out in Schedule III and on the recommendations of the Social Security Investment Committee. (6) Any decision or action taken by the Board involving the investment of the Fund, which is contrary to the recommendations made by the Social Security Investment Committee shall be voidable at the instance of the Investment Committee, and every member of the Board who wilfully participated in such decision or action, without prejudice to any civil liability which may be incurred by reason of any loss occurring to the Fund, commits an offence and is liable on summary conviction or on indictment (at the discretion of the Director of Public Prosecutions) to a fine which shall not be less than ten thousand dollars but which may extend to twenty thousand dollars, or to imprisonment for a term which shall not be less than two years but which may extend to five years, or to both such fine and term of imprisonment. (7) For the purpose of sub-section (6), every person who was a member of the Board at the material time shall be deemed to have participated wilfully in such decision or action as aforesaid unless he adduces evidence to show that such decision or action was taken without his consent.