Regulations

(1) The Board may with the approval of the Minister make regulations for the better carrying out of the provisions of this Part and for prescribing anything that requires to be prescribed. (2) All regulations made by the Board pursuant to sub- section (1), shall be laid before the National Assembly as soon as may be after the making thereof and shall be subject to 72 SCHEDULE I SOCIAL SECURITY ACT Insurable Employment as an Employed Person and Excepted Employments (Section 3) PART I Insurable Employment as an Employed Person 1. Employment in Belize under any contract of service or apprenticeship, written or oral, and whether expressed or implied. 2. Employment in a civilian capacity under the Crown where the contract of service is entered into in Belize. 3. Employment whether within or outside Belize of a person domiciled or having a place of residence in Belize, (a) as master or member of the crew of any ship or vessel, or as a pilot, commander, navigator or member of the crew of any aircraft, being a ship, vessel or aircraft of which the owner (or the managing owner, if there is more than one owner) or the Chief Executive Officer resides or has his principal place of business in Belize; or (b) in any other capacity for the purposes of such ship, vessel or aircraft, or of the crew thereof, or of any passenger, or cargo or mails carried thereby. Social Security 73 Provided hat the contract of service is entered into in Belize with a view to its performance in whole or in part while the ship or vessel or aircraft is on its voyage. 4. Employment in plying for hire any vehicle, the use of which is obtained from the owner thereof under a contract of bailment (other than a hire purchase agreement) the owner of the vehicle being regarded as the employer. PART II S.I. 107 of 1999. Excepted Employments 1. Employment of a casual nature otherwise than for the purpose of the employer’s trade, business or profession. 2. Employment by any one employer for less than eight hours in a contribution week. 3. Employment of any person by the husband or wife of such person, or by the person with whom such person is living as wife or husband respectively. 4. Employment of a person who is not ordinarily resident in Belize if the employer of that person is not resident in Belize and has no place of business there. 5. Employment of a person under a written contract of service for a definite period if, (a) the person concerned is not a citizen of Belize and is not permanently resident there; (b) the salary of the person concerned is specified to be equivalent to not less than $9,600 per annum or such other amount as may be determined from time to time by order of the Minister or prescribed; and 74 Social Security (c) the person concerned informs the Chief Executive Officer in writing that he opts not to be insured under the Act, Provided that the employment of such a person shall not be excepted employment for a period exceeding one year from the date of the exercise of the option by such person. 6. Employment in respect of which no wages or other remuneration is paid, where the person employed is the brother, sister, father, mother, son or daughter of the employer, being employment in a private dwelling house in which both the person employed and the employer reside and not for the purpose of any trade or business carried on in such dwelling house by the employer. 7. Employment as secretary or clerk of a society, club, philanthropic school or other similar body or institution, where personal service is ordinarily required only occasionally or outside the ordinary hours of work. 8. Employment involving part-time service only, in the performance of clerical duties after 4.00 p.m. or outside the ordinary hours of work. 9. Employment of a person as an outworker, that is to say, a person to whom articles or materials are given out to be made up, cleaned, washed, altered, ornamented, finished or repaired or adapted for sale in his own home or on other premises not under the control or management of the person who gave out the articles or materials. 10. Employment of a person in the naval, military or air services of the Crown. Social Security 75 SCHEDULE1 II SOCIAL SECUTITY ACT Composition and Proceedings of the Social Security Board (Section 28) 1. The Board shall be appointed by the Minister from among persons of integrity and high standing and shall consist of, Composition. (a) five persons appointed by the Minister in his or her discretion; (b) two persons nominated by the National Trade Union Congress of Belize; (c) two persons nominated by the employers’ organisations; of whom one shall be nominated by the Belize Chamber of Commerce and Industry and one shall be nominated by the Belize Business Bureau; or (d) the Chief Executive Officer of the Social Security Board, who shall be an ex-officio member without a right of vote. 2. The Minister shall appoint one of the private sector members of the Board to be the Chairperson of the Board. Chairperson. 3. The Board shall appoint one of the other members to be Deputy Chairperson for a period of one year in the first instance. Deputy Chairperson. 1 This Schedule was substituted by Act No. 20 of 2007. 76 Social Security 4. The Board shall appoint one of its officers to be the Recording Secretary and such Secretary shall, Recording Secretary (a) advise the Board on all aspects of its powers and functions under the Act; or (b) conduct all other similar functions for the smooth operation of the Board and to ensure compliance with this Act and all other applicable laws, rules and regulations. Terms of office. 5. The term of office of members shall be for a period of three years in the case of the Chairperson, and two years in the case of other members, Provided that on the expiration of his or her term of office any member shall be eligible for reappointment and such reappointment may be for the same term or for such shorter period as may be specified in the instrument appointing such member. Vacancies. 6. Notwithstanding any vacancy in its membership but subject to the presence of the quorum, it shall be lawful for the Board to hold meetings and to carry out all its duties, functions and obligations under the Act, Provided that the Minister shall take steps to fill any such vacancy as early as practicable. Absence of Chairperson. 7.-(1) In the case of the absence of the Chairperson, whether through illness or otherwise, the Deputy Chairperson if present, shall act as Chairperson. (2) In the case of the absence of both the Chairperson and the Deputy Chairperson, whether through illness or otherwise, the members present may appoint one of their number to act as Chairperson but the Minister may, if he thinks fit, appoint a person to act as Chairperson for such period as the Minister specifies. Social Security 77 8. In the case of the absence of any other member, whether through illness or otherwise, the Minister may, on the recommendation of the organization which had nominated such member, appoint a person to perform the functions of that member during his absence. Temporary absence of members. Meetings and quorum. 9.-(1) The Board shall hold such meetings as, in the opinion of the Chairperson or at least three other members, are necessary for the efficient conduct of its affairs, Provided that, the Board shall, as a rule meet at least once a month. (2) At any meeting of the Board, six of the members including the Chairperson or member acting as Chairperson, which shall include at least one member nominated by the National Trade Union Congress of Belize and one member nominated by the employers’ organisations, shall constitute the quorum. 10.-(1) Any question arising at any meeting of the Board shall be determined by a majority of the votes of the members present. The Chairperson shall have, if there is an equality of votes, a second or casting vote. Decision. (2) No decision or resolution which involves or affects the moneys of the Fund not budgeted for, or involving investments, shall be made by circulation (“round robin”). 11. The Board may co-opt any one or more persons to attend any particular meeting of the Board for the purpose of advising or assisting the Board, but no such co-opted person shall have any right to vote. Co-option. 12. If any member of the Board or other person present at a meeting of the Board is directly or indirectly interested in any contract or proposed contract or other matter he shall, at the meeting and as soon as is practicable after the commencement of the meeting disclose the fact of his or her interest and shall Personal interest. 78 Social Security not participate in the discussion, consideration or voting on such a contract or other matter, and the fact of such disclosure shall be recorded in the minutes of the said meeting. 13. Every member or officer of the Board or other person present at a meeting of the Board who knowingly contravenes the requirements of paragraph 12 above for private gain, 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. Audit Committee. 14. The Board shall form an Audit Committee which shall include members of the Board to review and approve all audit reports and all auditors, including the auditor referred to in section 47 who shall report to the Board by way of the Audit Committee. Performance report. 15. The Board shall prepare an annual performance report of all investments of the Fund, including all loans, donations, purchases and/or sales of mortgages and property and submit the same to the Minister who shall lay it before the National Assembly within two months or as soon thereafter as practicable. Liability of members. 16. For any decision or other action taken by the Board involving the investment of the Fund which is contrary to the Investment Framework contained in Schedule III, every member of the Board who was a party to such action and who wilfully disregarded the Investment Framework shall, without prejudice to any civil liability which may be incurred in that behalf, be guilty of an offence and be 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 Social Security 79 than two years but which may extend to five years, or to both such fine and term of imprisonment. Presumption. 17. For the purpose of paragraph 16 above, every person who was a member of the Board at the material time shall be deemed to be a party to such decision or action as aforesaid unless he adduces evidence to show that such decision or action was taken without his consent. Minutes. 18. The Board shall cause minutes to be kept of every meeting. Such minutes shall be confirmed by the Board and signed by the Chairperson. Procedure. 19. Subject to this Act and this Schedule, the Board may regulate its own procedure. 80 Social Security SCHEDULE2 III SOCIAL SECURITY ACT Investment Framework (Section 49) Introduction 1. Section 46 of the Social Security Act provides for the establishment of the Social Security Fund (hereinafter referred to as “the Fund”) and authorises the Social Security Investment Committee (referred to in this Schedule as “the Committee”) to make recommendations to the Social Security Board on the investment of the reserves of the Fund. The Board shall be the final authority on the management of the investment portfolio of the Board. 2. Section 49 of the Act provides for the establishment of the Social Security Investment Committee and sets out its composition, powers and duties. Objectives 3. The Board’s Investment Portfolio shall be managed to accomplish the following, (a) assure the availability of sufficient assets to pay benefits and liabilities when due; (b) maximise the total rate of return within prudent and acceptable levels of risk and liquidity; 2 This Schedule was inserted by Act. No. 20 of 2007 Social Security 81 (c) ensure adequate diversification to avoid large losses and to preserve capital; (d) grow assets at a rate to keep pace with inflation and a reasonable level of growth in benefits; (e) assure the full utilisation of assets in a cost effective and efficient manner; and (f) cause a positive impact on the economic growth and development of the economy. Investment Principles - General 4. Investments shall be made solely in the best interests of the Fund. The Board and the Committee shall discharge their fiduciary duties with the same degree of care, skill, prudence and diligence that a prudent person acting in a like capacity would exercise in comparable situations. 5. The Board and the Committee shall maintain the highest level of transparency and accountability, and they shall disclose all information on investments in the Board’s annual audited financial statements. 6. A major consideration for the loans and mortgages shall be that adequate collateral must exist to cover any default. There shall be no exception to this predominant principle. 7. The Committee and the Board shall take into consideration the social and economic utility of the investments, but this shall be subsidiary to the primary objective of safety and profitability of the fund. 8. The Board may in addition to local investments invest in secure financial instruments traded in foreign capital markets in keeping with its investment and policy guidelines. 82 Social Security Public Notice of Investments 9. The Committee shall give advance public notice of all proposed investments by the Fund by publishing in at least two consecutive issues of the Gazette and in at least two newspapers of general circulation in Belize a notice of its intention to lend or invest the moneys of the Fund, giving all pertinent details. 10. The Committee shall prepare an annual performance report of all investments of the Fund including all loans, donations, purchases and/or sales of mortgages and property and submit the same to the Minister who shall lay it before the National Assembly as soon as practicable. Categories of Investment 11. For the purpose of this Schedule, investments shall be classified as follows, according to the maturity of the investment, Short-term: up to one year; Medium-term: more than one year but up to five years; Long-term: more than five years. 12. Not more than a stated percentage of the Long-term Benefit Branch reserves, as determined by the Board based on periodic actuarial recommendations, shall be invested in long- term investments. The Short- term Benefit Branch reserves shall be placed in secure short-term liquid investments with licensed or accredited financial institutions. 13. Long-term reserves may be invested in short-term, medium-term or long-term projects, but with a weighted average maturity not exceeding the expected actuarial period of equilibrium of the Long-term Branch. Social Security 83 Valuation and Benchmarks 14. The Board shall ensure that for the purpose of Financial Statements, assets shall be valued in accordance with generally accepted accounting principles, thus ensuring that the information about investments is as transparent as possible. 15. The Board shall require the actuary or a financial expert to submit for consideration by the Board a suitable set of benchmarks on fixed income investments and equity investments, to enable the Board to assess the performance of the Fund as compared to the financial markets. Performance Analysis 16. Periodic analysis of each asset class and the Board’s Investment Portfolio as a whole shall be carried out to determine nominal, risk- adjusted, and inflation-adjusted (real) rates of return. The analysis shall include comparisons with target rates of return, and with appropriate benchmarks, to allow the Board to measure performance, to update the assets allocation strategy, and to make adjustments (as may be required) to the investment framework and strategy, subject to the provisions of this Schedule and the Act. 17. An actuarial analysis of the financial and investment performance of each benefit branch shall be submitted to the Board no later than one month following the finalization of the annual audited financial statement, as a supplement to the statutory actuarial valuations. The report shall assess the investment return in real and nominal terms, the level of sufficiency, and expected trends of each branch reserve. The analysis will assist the Board in the reformulation of the investment strategy for the following year. 84 Social Security Restrictions on Investments 18. Maximum levels of investment by category shall beset with reference to prudential rules and actuarial recommendations. The Board may exceed such ceiling under certain conditions (e.g. time limits), based on the recommendations of the Committee. 19. Investments in a given individual asset or security or in the assets or securities of a particular industry or entity shall be limited to a proportion of the Board’s total Investment Portfolio. The Board’s holdings shall not exceed more than a specific proportion of the total market value of a given type of asset or of the assets of a particular industry or entity. 20. The Board shall not extend guarantees or collaterals that could negatively affect or restrict the availability or disposition of the Fund in approving investments. 21. Investments in certain categories of obligations shall be prohibited, including loans without appropriate guarantees or adequate collaterals or on terms which would not be acceptable in the financial services sector, unquoted shares, and investments which raise major risks of conflicts of interest. 22. No single investment shall exceed 20% of the total amount of the Reserves, including economically targeted investments. 23. The relative maximum asset allocation by branch will be as follows after deducting cash requirements for current operations, Social Security 85 Branch Short-term Employment Injury* Long Term Fixed income financial Obligations 90% 60% 50% Others 10% 40% 50% Total 100% 100% 100% * Includes the disablement and death reserve. 24. The maturity of the investments shall be matched to the actuarial assessments as regards the maintenance of the minimum statutory reserve ratios and the cash-flow of each benefit branch. Procedure for Handling Investment Proposals 25. Loan proposals shall be addressed to the Social Security Board through the Chief Executive Officer who will be responsible for the technical and financial evaluation of the proposal through the Investment 26. Loan proposal documents shall be submitted to the Board through its Chief Executive Officer. After considering the proposal, if the Board is interested in investing in the area proposed, it will forward the documents to the Committee which will proceed to examine the completeness of the information required. 27. Any additional information required shall be requested by the Secretary of the Committee. 28. The applicants for loans shall he informed by the Board whether their applications have been accepted. 86 Social Security 29. The repayment period and the terms for loans shall be determined on a case by case basis at the discretion of the Board; but interest rates shall not be accepted below the actuarial requirements. Management of Investment Portfolio 30. To enable the Committee to better discharge its functions, there shall be established within the Social Security Board an Investment Department, staffed by competent and qualified personnel, which shall work under the control of the Chief Executive Officer and provide the Committee all necessary assistance, including the project evaluation of all loans and equity applications. 31. The Investment Department shall also be responsible for the safe custody of all documents and valuables lodged in connection with approved loans and investments. It shall also perform regular accounting of all assets owned, purchased, or sold, as well as movements in and out of the Board’s Investment Portfolio. 32. To protect the security of the Fund, in the light of possible changing trends in the investment areas, the Board and Investment Committee shall carry out regular monitoring of the status of the Board’s investments and the general state of the business and obtain quarterly reports on these matters. 33. Any substantial investment of the Reserve Fund in private enterprises shall be safeguarded by having Social Security representation on the Board of the investment enterprise. Performance Reports 34. Apart from annual performance reports required by paragraph 15 of Schedule II, the Board shall submit comprehensive half-yearly reports to the Minister on the status Social Security 87 of the Investment Portfolio, including adherence to this Framework, the performance of the investments and relevant related matters. The annual report shall be accompanied by the reports of the external auditor and the actuary. The Minister shall lay such reports before the National Assembly and instruct the Board to publish a summary thereof in the Gazette and in at least one national newspaper of general circulation in Belize.