Long-Term Saving Scheme Act, 2004 Act 679 (Revised)

ACT 679
Long-term Savings Scheme Act, 2004
ACT 679
LONG-TERM SAVINGS SCHEME ACT, 2004
ARRANGEMENT OF SECTIONS
Long-term Savings Plans Scheme and Long-term Savings Agency
The Scheme
SECTION
1. Establishment of Scheme. 2. Object of the Scheme. 3. Establishment of the Agency. 4. Functions of the Agency. 5. Power of the Agency to request for production of books. 6. Powers of the Agency in relation to books required to be produced. 7. Power of Agency to conduct investigation and inspection. The Council
8. Governing Council of the Agency. 9. Appointment of members of the Council. 10. Tenure of office of members of the Council. 11. Meetings of the Council. 12. Committees of the Council. 13. Disclosure of interest. 14. Allowances for members of the Council. Finance and Administration
15. Funds of the Agency. 16. Fees. 17. Appointment and responsibility of the Administrator. 18. Appointment of other staff. 19. Delegation of power of appointment. 20. Accounts and audit. 21. Annual report. 22. Financial year. Contributions
23. Operation of plans. 24. Plan contributions. 25. Withdrawal of portfolio. 26. Contributor leaving employment. 27. Right of contributor to convert plan. 28.

ation of plans. 24. Plan contributions. 25. Withdrawal of portfolio. 26. Contributor leaving employment. 27. Right of contributor to convert plan. 28.

Creation of encumbrances in respect of contribution. 29. Duty of employer in respect of plan. V-3651 [Issue 1]

Creation of encumbrances in respect of contribution. 29. Duty of employer in respect of plan. V-3651 [Issue 1]

ACT 679
Long-term Savings Scheme Act, 2004
Tax Reliefs
30. Tax reliefs. Management ofPlans
31. Management of plan funds. 32. Qualification of funds manager. 33. Application for approval of funds manager. 34. Revocation and suspension of funds manager’s approval. 35. Duties and prohibited activities of a funds manager. 36. Permitted investment of plan fund,
37. Permitted expenditure from plan. 38. Fees of funds manager. 39. Appointment of trustee for plan. 40. Duties and powers of a trustee,
41. Suspension and revocation of trustee’s approval. 42. Fees of trustee. Miscellaneous Matters
43. Dispute resolution. 44. Accounts and audit of funds manager and trustee. 45. Reports of funds manager or trustee. 46. Financial year. 47. Protection of plan funds on liquidation. 48. Offences. 49. Regulations. 50. Interpretation. ACT 679
LONG-TERM SAVINGS SCHEME ACT, 20041
AN ACT to establish a Long-term Savings Scheme; to provide the general frame
work for the operation and regulation of the Scheme, and to provide for related
matters. Long-term Savings Scheme and Long-term Savings Agency
The Scheme
1. Establishment of Scheme
There is established by this Act a Long-term Savings Scheme. 1.

term Savings Scheme and Long-term Savings Agency
The Scheme
1. Establishment of Scheme
There is established by this Act a Long-term Savings Scheme. 1.

This Act was assented to on 11th November, 2004, and notified in the Gazette on 12th November, 2004. [Issue 1] V - 3652

This Act was assented to on 11th November, 2004, and notified in the Gazette on 12th November, 2004. [Issue 1] V - 3652

ACT 679
Long-term Savings Scheme Act, 2004
2. Object of the Scheme
The object of the Scheme is to provide for the operation of tax-incentive-based volun
tary savings plans, which shall provide for any one or more of the following:
(a) retirement savings;
(b) savings for home ownership and educational needs;
(c) savings for an all purpose plan;
(d) lump-sum payment on account of physical or mental disability; and
(e) lump-sum payment to dependants in the event of death, of a contributor to
a plan. 3. Establishment of the Agency
(1) There is hereby established by this Act a Long-term Savings Scheme Agency. (2) The Agency is a body corporate with perpetual succession and a common seal,
and may sue and be sued in its corporate name. (3) The Agency may for the performance of its functions under this Act acquire, hold
and dispose of movable and immovable property and may enter into a contract or any
other transaction. 4.

of its functions under this Act acquire, hold
and dispose of movable and immovable property and may enter into a contract or any
other transaction. 4.

Functions of the Agency
The Agency shall administer and operate the Scheme and shall for that purpose
(a) formulate and pursue policies to achieve the object of the Scheme;
(b) in consultation with the Securities and Exchange Commission take meas
ures to protect the interests of contributors where the solvency of a binds
manager is in doubt;
(c) carry out research in relation to the Scheme and protect the integrity of the
Scheme against any abuses;
(d) promote and educate the public on the Scheme;
(e) monitor and evaluate the operations and performance of the Scheme;
(f) receive and process applications from persons who want to operate as
funds managers under this Act for approval;
(g) put in place structures for the Scheme and issue guidelines and notices as
required for the proper operation of the Scheme;
(h) publish the manuals that it considers necessary for the conduct and opera
tion of the Scheme; and
(i) advise the Minister on all matters relating to the Scheme. 5.

anuals that it considers necessary for the conduct and opera
tion of the Scheme; and
(i) advise the Minister on all matters relating to the Scheme. 5.

Power of the Agency to request for production of books
(1) The Agency may by notice in writing at any time, if the Council considers that
there is sufficient cause to do so, give directions to a funds manager, a trustee, an em
ployer, or any other person, to produce to a person authorised by the Agency, the books
or records specified in the notice. V-3653 [Issue 1]

ee, an em
ployer, or any other person, to produce to a person authorised by the Agency, the books
or records specified in the notice. V-3653 [Issue 1]

ACT 679
Long-term Savings Scheme Act, 2004
(2) The Agency may in writing authorise a person possessed of the qualification that
the Council considers adequate, to exercise the power to request for the production of
books conferred on the Agency under this section. (3) Where the Agency or a person authorised by the Agency requires the production
of books under this section and a person has a lien on the books, the production of the
books shall not prejudice the lien. (4) An action shall not lie against a person for complying with a direction or re
quirement to produce books made or given under this section. (5) A request to produce books or records under this section extends, if the person is
a body corporate, to a person who is or has been an officer of the body corporate whether
that body corporate is in the course of being wound up or has been dissolved. 6.

a person who is or has been an officer of the body corporate whether
that body corporate is in the course of being wound up or has been dissolved. 6.

Powers of the Agency in relation to books required to be produced
(1) Where the required books are produced under section 5 (1), the person to whom
they are produced
(a) may take possession of them, make copies of them, or take extracts from
them;
(b) may require a person who was party to the compilation of the books to
make a statement providing an explanation of any matters contained in the
books;
(c) may retain possession of the books for as long as the Council considers
necessary to enable the books to be inspected and copies of or extracts
from the books to be made or taken by or on behalf of the Agency; and
(d) shall permit the person who produced them, on giving a reasonable notice
and specification of the books, to have access to them. (2) Where the books are not produced, the Agency or the authorised person may re
quire the person who should have produced the books
(a) to state, to the best of that persons knowledge and belief, where the books
may be found;
(b) to identify the person who, to the best of that person’s knowledge and be
lief, last had custody of the books and where the person may be found; or
(c) to state the reasons why the books cannot be produced. 7.

owledge and be
lief, last had custody of the books and where the person may be found; or
(c) to state the reasons why the books cannot be produced. 7.

Power of Agency to conduct investigation and inspection
(1) Where the Council has reason to suspect that a person has committed an offence
under this Act or has been guilty of fraud or dishonesty in relation to dealing in plan ac
tivities, it may conduct the investigation that it considers appropriate in accordance with
this Act. (2) The Agency may inspect the books, accounts, documents and transactions of a
funds manager or trustee. (3) The Agency may appoint a person possessed of the qualification that the Council
considers adequate, to exercise the power of the Agency under subsection (1). (Issue 1] V - 3654

erson possessed of the qualification that the Council
considers adequate, to exercise the power of the Agency under subsection (1). (Issue 1] V - 3654

ACT 679
Long-term Savings Scheme Act, 2004
(4) For the purposes of an inspection under this section, the funds manager or trustee
shall afford the Agency access to, and shall produce books, accounts and documents and
shall give the information and provide the facilities required to conduct the investigation
or inspection. (5) A person appointed by the Agency under subsection (3) shall have the power to
copy or take possession of the books, accounts and any other documents of a funds man
ager or trustee. (6) A funds manager or trustee, who fails, without reasonable excuse, to produce any
book, account or document, information or facilities in accordance with subsection (4)
commits an offence under this Act and is liable on summary conviction to a fine of not
less than one thousand penalty units or to a term of imprisonment of not less than three
years or to both the fine and the imprisonment. The Council
8. Governing Council of the Agency
(1) The governing body of the Agency is a Council. (2) The Council shall provide policy direction for the Scheme and shall ensure that
the functions of the Agency are effectively and efficiently performed.

The Council shall provide policy direction for the Scheme and shall ensure that
the functions of the Agency are effectively and efficiently performed.

(3) The Council consists of
(a) the chairperson,
(b) one representative of each of the following:
(i) the Ministry of Finance and Economic Planning, not below the rank
of director,
(ii) the Ministry of Manpower Development and Employment, not be
low the rank of director,
(iii) the Ghana Employers Association,
(iv) the Ghana Securities Industry Association,
(v) the Ghana Association of Bankers,
(vi) the Ghana Insurers Association, and
(vii) organised labour,
(c) two other individuals representing the informal sectoi, one of whom is a
woman, and
(d) the Administrator of the Agency. 9. Appointment of members of the Council
(1) The chairperson and members of the Council shall be appointed by the President
in accordance with article 70 of the Constitution. (2) The President shall in appointing the chairperson and the other members of the
Council under subsection (1) consider the integrity expertise, experience, and knowledge
of the persons in matters relevant to the functions of the Agency. V-3655 [Issue 1]

on (1) consider the integrity expertise, experience, and knowledge
of the persons in matters relevant to the functions of the Agency. V-3655 [Issue 1]

ACT 679
Long-term Savings Scheme Act, 2004
10. Tenure of office of members of the Council
(1) The chairperson and the members of the Council shall hold office for a period not
exceeding four years and are eligible for re-appointment. (2) A member of the Council may resign from the office at any time by letter ad
dressed to the President through the Minister. (3) A member who is absent from four consecutive meetings of the Council without
sufficient cause ceases to be a member of the Council. (4) The chairperson or any other member of the Council may be removed from office
by the President for inability to perform the functions of office, for stated misbehaviour
or for any other just cause. (5) The chairperson of the Council shall notify the Minister of vacancies that occur in
the membership of the Council within one month of the occurrence of the vacancy. (6) Where a person is appointed to fill a vacancy that person shall hold office for the
remainder of the term of the previous member and shall subject to the provisions of this
Act be eligible for re-appointment. 11.

l hold office for the
remainder of the term of the previous member and shall subject to the provisions of this
Act be eligible for re-appointment. 11.

Meetings of the Council
(1) The Council shall meet at least once every three months for the dispatch of busi
ness at the times and in the places determined by the Council. (2) The chairperson shall on the request of not less than one third of the membership
of the Council convene a special meeting of the Council. (3) The quorum at a meeting of the Council is seven membeis. (4) The chairperson shall preside at the meetings of the Council and in the absence of
the chairperson a member of the Council elected by the members present from among
their number shall preside. (5) Matters before the Council shall be decided by a majority of the members present
and voting. (6) The person presiding at a meeting of the Council shall in the event of an equality
of votes have a casting vote. (7) The Council may co-opt a person to act as an adviser at its meetings but a co
opted person is not entitled to vote at a meeting of the Council. (8) The validity of the proceedings of the Council shall not be affected by a vacancy
in membership or by a defect in the appointment or qualification of a member.

ity of the proceedings of the Council shall not be affected by a vacancy
in membership or by a defect in the appointment or qualification of a member.

(9) Except as otherwise provided under this section, the Council shall determine and
regulate the procedure for its meetings. 12. Committees of the Council
The Council may for the purposes of achieving the object of the Scheme appoint
committees of the Council comprising members of the Council or non-members or both
and may assign to a committee any of the functions that the Council may determine. [Issue 1] V-3656

sing members of the Council or non-members or both
and may assign to a committee any of the functions that the Council may determine. [Issue 1] V-3656

ACT 679
Long-term Savings Scheme Act, 2004
13. Disclosure of interest
(1) A member of the Council who has an interest in a matter being considered or
dealt with by the Council shall disclose the nature of that interest to the Council and shall
not take part in the deliberations or decision of the Council with respect to that matter. (2) A member who has an interest in a matter before the Council and who fails to
disclose that interest under subsection (1) ceases to be member of the Council. 14. Allowances for members of the Council
The chairperson and the other members of the Council shall be paid the allowances
determined by the Minister. Finance and Administration
15. Funds of the Agency
(1) The funds of the Agency include
(a) money accruing to the Agency in the course of performance of its functions
under this Act,
(b) money accruing to the Agency from the fees imposed under this Act,
(c) grants received from the Government by the Agency for the performance
of its functions,
(d) loans granted to the Agency by the Government or by any other body or
person, and
(e) grants approved by the Minister to be made to the Agency by donors.

ns granted to the Agency by the Government or by any other body or
person, and
(e) grants approved by the Minister to be made to the Agency by donors.

(2) Funds received by or on behalf of the Agency shall be deposited to the credit of
the Agency in an account in a bank or banks approved by the Council. 16. Fees
(1) The Agency is entitled to fees charged on returns on plan funds or assets under
management of the funds managers at a rate that shall be determined by the Agency in
consultation with the funds managers. (2) A funds manager shall deduct the fee from the total returns on plan binds or as
sets under management of the funds managers and remit the deduction to the Agency at
the end of every quarter. (3) The fee remitted to the Agency under subsection (2) shall be applied by the
Agency for the purposes
(a) of the operational and other expenses of the Agency, and
(b) any other uses of benefit to the Scheme that the Agency may determine in
accordance with the Regulations. 17. Appointment and responsibility of the Administrator
(1) The President acting in accordance with article 195 of the Constitution shall ap
point an Administrator for the Agency. V - 3657 [Issue 1]

strator
(1) The President acting in accordance with article 195 of the Constitution shall ap
point an Administrator for the Agency. V - 3657 [Issue 1]

ACT 679
Long-term Savings Scheme Act, 2004
(2) The Administrator shall
(a) hold office on the terms and conditions specified in the letter of appoint
ment, and
(b) be a member of the Council. (3) Subject to the directions of the Council, the Administrator is responsible for the
day-to-day administration of the affairs of the Agency and shall ensure the implementa
tion of the decisions of the Council. 18. Appointment of other staff
(1) The Agency shall have a secretary to the Council and any other staff necessary
for the effective and efficient performance of the functions of the Agency. (2) The President acting in accordance with article 195 of the Constitution , shall ap
point the officers and the other members of staff who shall hold office on the terms and
conditions specified in their letters of appointment. (3) Other public officers may be transferred or seconded to the Agency. 19. Delegation of power of appointment
The President may in accordance with article 195 (2) of the Constitution, delegate the
power of appointment of public officers under this Act. 20.

ent
The President may in accordance with article 195 (2) of the Constitution, delegate the
power of appointment of public officers under this Act. 20.

Accounts and audit
(1) The Agency shall keep proper books of account and records in relation to them in
the form approved by the Auditor-General. (2) The books of account of the Agency shall be audited by the Auditor-General
within six months after the end of each financial year. (3) In addition to the annual audit, technical audits may be conducted on a selective
basis by the Auditor-General. 21. Annual report
(1) The Council shall submit to the Minister as soon as practicable and in any event
not more than eight months after the end of each financial year a report dealing generally
with the activities and operation of the Agency during the year to which the report relates. (2) The report shall include
(a) the audited accounts of the Agency and the Auditor-General’s report on the
accounts of the Agency, and
(b) any other information as the Council considers necessary. (3) The Minister shall within two months after the receipt of the annual report submit
the report to Parliament with a statement that the Minister considers necessary. 22. Financial year
The financial year of the Agency shall be the same as the financial year of the
Government. [Issue 1] V - 3658

considers necessary. 22. Financial year
The financial year of the Agency shall be the same as the financial year of the
Government. [Issue 1] V - 3658

ACT 679
Long-term Savings Scheme Act, 2004
Contributions
23. Operation of plans
(1) A plan consists of contributions by a person into a fund managed by a funds man
ager on terms, conditions and rules agreed on between the funds Manager and the con
tributor, for one or more of the purposes specified in section 2. (2) A person becomes a contributor if that person completes a form approved by the
Agency and submits that form to a funds manager for the purpose, and accepts to abide
by the plan rules. (3) A contributor shall receive a copy of the plan rules on joining a plan. (4) The objectives of a plan and the benefits to be derived from the plan shall be
clearly stated in the plan rules and any information documents issued in relation to the
plan. (5) The plan rules shall set minimum contributions to a plan, as determined by the
Agency by notice published in the Gazette. (6) Despite subsection (5) a funds manager may with the approval of the Agency ac
cept contributions below the minimum contributions. (7) The plan rules shall, subject to the provisions of this Act, set out the conditions
and procedures for withdrawal of moneys standing to the credit of a contributor to a plan. 24.

t to the provisions of this Act, set out the conditions
and procedures for withdrawal of moneys standing to the credit of a contributor to a plan. 24.

Plan contributions
(1) A person may, subject to section 23 (2) contribute to a plan on that person’s own
behalf or on behalf of a named beneficiary. (2) An employer may in accordance with an agreement with its employee contribute
to a plan on behalf of that employee. (3) A contribution made and the returns earned from investment of the contribution
shall, subject to deductions of fees in accordance with this Act and the plan rules, be
credited to the account of the contributor. (4) Contributions may be made to a plan by or on behalf of a contributor after the re
tirement of the contributor from employment. (5) A contribution shall not be made to a plan on behalf of a contributor on or after
the death of the contributor. (6) Ownership of an employer’s contributions on behalf of an employee shall not vest
in the employee until at the end of the vesting period. (7) Subject to subsection (6), an employer’s contributions to a plan on behalf of an
employee shall be the personal property of that employee.

period. (7) Subject to subsection (6), an employer’s contributions to a plan on behalf of an
employee shall be the personal property of that employee.

(8) Despite subsection (6), except for termination for proven misconduct, in the event
of severance by the employer of the employment relationship with the contributor, or in
the event of liquidation of the employer, an employer’s contributions for its employee
shall vest in the employee even if the vesting period has not expired. V-3659 (Issue 1]

of the employer, an employer’s contributions for its employee
shall vest in the employee even if the vesting period has not expired. V-3659 (Issue 1]

ACT 679
Long-term Savings Scheme Act, 2004
(9) Subject to subsection (8), a contributor shall forfeit the total amount of the em
ployer’s contributions for that contributor if the contributor leaves the employment of the
employer before the end of the vesting period. (10) On the death of a contributor before the expiry of or after expiry of the vesting
period, the contributions by the contributors portfolio shall devolve on the estate of the
contributor. (11) Subject to this Act and the Regulations, funds standing to the credit of an em
ployee under a provident fund sponsored by an employer or employee group, may at any
time within nine months or a longer period that the Agency may by notice specify, be
transferred to a plan as contribution, pursuant to an agreement
(a) between the employer and the employee, or
(b) among the employee group. (12) Section 30 shall apply to contributions made pursuant to section 24 (11) after the
coming into force of this Act. 25.

) among the employee group. (12) Section 30 shall apply to contributions made pursuant to section 24 (11) after the
coming into force of this Act. 25.

Withdrawal of portfolio
Subject to sections 26, and 30 (6), (7) and (8), a contributor or a beneficiary specified
by the contributor may withdraw all or part of the contributor’s portfolio from a plan
(a) after ten years from the date of first contribution in the case of a group per
sonal retirement plan or an individual retirement plan;
(b) after eight years from the date of first contribution in the case of an all pur
pose plan,
(c) after five years from the date of first contribution in the case of a home
ownership plan or an educational savings plan, except that a withdrawal
shall not be allowed Hom a home ownership plan or an educational savings
plan for a purpose other than for home ownership or educational purpose,
(d) at any time following a certification by a medical board that the contributor
is incapable of a normal gainful employment by virtue of a permanent
physical or mental disability, or
(e) at any time by the beneficiaries of the estate of a decreased contributor. 26.

ployment by virtue of a permanent
physical or mental disability, or
(e) at any time by the beneficiaries of the estate of a decreased contributor. 26.

Contributor leaving employment
(1) Subject to section 24 (7), where a contributor for any reason leaves the employ
ment of an employer who contributes to a plan on behalf of the contributor
(a) before the expiry of the vesting period
(i) the contributor may by notice in writing request the funds manager
to transfer the contributor’s portfolio to another plan operated by that
funds manager or to a plan operated by a funds manager specified by
the contributor, or may, subject to section 30 (6), (7) and (8) with
draw all or part of the contributor’s portfolio;
(ii) the funds manager shall ensure that the total amount of the em
ployer’s contributions together with the returns earned on the contri
butions are refunded to the employer of the contributor at the same
[Issue 1] V-3660

er’s contributions together with the returns earned on the contri
butions are refunded to the employer of the contributor at the same
[Issue 1] V-3660

ACT 679
Long-term Savings Scheme Act, 2004
time that the transfer or withdrawal of the contributor’s portfolio is
made;
(iii) the total amount of the employer’s contributions and returns re
funded under subparagraph (ii) shall be taxable as income in the
hands of the employer in the year of the refund; and
(iv) the funds manager shall issue a notice of refund to the Agency and the
Commissioner of the Internal Revenue Service at the same time as the
refund is made to the employer’s account under subparagraph (ii);
(b) after the vesting period, the contributor may
(i) request the funds manager to transfer the contributor’s portfolio to
another plan operated by the funds manager;
(ii) request the funds manager to transfer the contributor’s portfolio to a
plan operated by a funds manager specified by the contributor; or
(iii) subject to section 30 (6), (7) and (8) withdraw the portfolio. (2) A funds manager shall not act on a contributor’s request for transfer or with
drawal of the contributor’s portfolio without notice in writing to that contributor’s em
ployer if that employer has contributed to the plan on behalf of the contributor.

butor’s portfolio without notice in writing to that contributor’s em
ployer if that employer has contributed to the plan on behalf of the contributor.

(3) Subject to subsection (2), a funds manager shall ensure that on receipt of a notice
under this section for a transfer by a contributor or an employer, the transfer is effected in
accordance with the transfer notice not later than fourteen days from the date the transfer
notice is received by the binds manager. 27. Right of contributor to convert plan
(1) Subject to subsections (2) and (3) and the provisions of the plan rules, a contribu
tor may by notice in writing to the appropriate funds manager convert one plan to another
plan. (2) For purposes of this section, a conversion under subsection (1) shall be prospec
tive and the date of service of the notice of conversion on the funds manager shall be the
first date of contribution to the latter plan for purposes of determining the period of con
tribution to the latter plan. (3) Where a person converts a plan into another plan in accordance with subsection (1),
the tax benefits applicable to the latter plan under section 30 shall apply, with effect from
the date the notice under subsection (1) is served on the appropriate funds manager. 28.

he latter plan under section 30 shall apply, with effect from
the date the notice under subsection (1) is served on the appropriate funds manager. 28.

Creation of encumbrances in respect of contribution
(1) Subject to subsection (2), a contributor may pledge or otherwise create a charge
in respect of a part or all of that contributor’s portfolio. (2) Where a beneficiary of a pledge or charge created by a contributor under subsec
tion (1) enforces the charge, the beneficiary is liable for the tax applicable to withdrawals
under section 30. V-3661 [Issue 1]

tributor under subsec
tion (1) enforces the charge, the beneficiary is liable for the tax applicable to withdrawals
under section 30. V-3661 [Issue 1]

ACT 679
Long-term Savings Scheme Act, 2004
29. Duty of employer in respect of plan
Despite the provisions of any plan rules or an agreement to the contrary, an employer
shall
(a) provide the administrative and accounting facilities required to enable each
employee to join a plan of the employee’s choice and contribute to that
plan;
(b) without prejudice to subsection (a), an employer shall make appropriate pay
roll deductions from the monthly remuneration of an employee who wishes
to contribute to a plan and remit the contributions to the funds manager of the
plan within fourteen days after the end of the month of deduction. (c) not co-mingle payroll deductions under this Act with the employer’s own
funds and where an employer deducts contributions from the salary of an
employee under this Act, the contributions shall be held by the employer in
trust for the purposes of this Act until remitted to the appropriate Funds
Manager, and
(d) exercise in good faith any other duties conferred by the plan rules. Tax Reliefs
30.

this Act until remitted to the appropriate Funds
Manager, and
(d) exercise in good faith any other duties conferred by the plan rules. Tax Reliefs
30.

Tax reliefs
(1) Subject to subsections (2) and (3), contributions made by an employer to a plan
on behalf of a contributor, shall for the purposes of income tax, be treated as part of the
deductible income for that employer for any tax year. (2) Contributions not exceeding in total, seventeen and one half percent of a contribu
tor’s monthly income, made by a contributor or the contributor’s employer or both a con
tributor and the contributor’s employer to a group personal retirement plan or to an indi
vidual retirement plan, shall for the purposes of income tax, be treated as deductible in
come for the contributor and the contributor’s employer to the extent of their respective
contributions. (3) Contributions not exceeding in total, fifteen percent of a contributor’s monthly
income, made by a contributor or a contributor’s employer or both a contributor and the
contributor’s employer to an educational savings plan or to a home ownership plan shall
for the purposes of income tax, be treated as deductible income for the contributor and
the contributor’s employer to the extent of their respective contributions.

ses of income tax, be treated as deductible income for the contributor and
the contributor’s employer to the extent of their respective contributions.

(4) Contributions not exceeding in total, ten percent of a contributor’s monthly in
come, made by a contributor or a contributor’s employer or both a contributor and the
contributor’s employer for the all purpose plan shall for the purposes of income tax, be
treated as deductible income for the contributor and the contributor’s employer to the
extent of their respective contributions. (5) Investment income including capital gains, earned from the investment of plan
funds shall for the purposes of income tax, be treated as deductible income. (6) A withdrawal of all or a part of a contributor’s portfolio under a group personal
retirement plan or an individual retirement plan
(a) on or after retirement is tax exempt;
[Issue 1] V - 3662

butor’s portfolio under a group personal
retirement plan or an individual retirement plan
(a) on or after retirement is tax exempt;
[Issue 1] V - 3662

ACT 679
Long-term Savings Scheme Act, 2004
(b) before ten years of contributions and before retirement is subject to the
appropriate income tax and a surcharge of ten percent of the income earned
on the amount withdrawn. (7) A withdrawal from a home-ownership plan or educational savings plan
(a) after five years of contributions is tax exempt if the amount withdrawn is
used for home ownership or educational purposes, or
(b) before five years of contributions or for purposes other than home
ownership or education is subject to the appropriate income tax and a sur
charge of ten percent of the income earned on the amount withdrawn. (8) A withdrawal from an all purpose plan
(a) after eight years of contributions is exempt from tax, or
(b) before eight years of contributions is subject to the appropriate income tax
and a surcharge of ten percent of the income earned on the amount
withdrawn.

ore eight years of contributions is subject to the appropriate income tax
and a surcharge of ten percent of the income earned on the amount
withdrawn.

(9) Despite section 30 (6), (7) and (8) where a contributor withdraws from a plan be
fore the times specified for tax-exempt withdrawals under subsections (6) (a) and (7) (a)
and (8) (a), certification by a medical board that the contributor is incapable of a normal
gainful employment by virtue of a permanent physical or mental disability, the contribu
tor’s withdrawals shall be exempt from tax. (10) A withdrawal from a plan at any time by the beneficiaries of the estate of a de
ceased contributor shall be exempt from tax. Management ofPlans
31, Management of plan funds
Plan funds shall be managed by a hinds manager approved by the Agency under this
Act. 32. Qualification of funds manager
A person does not qualify as a funds manager for the purposes of this Act unless that
person is licensed by the Security and Exchange Commission as an investment adviser
under the Securities Industry Act, 19932 as amended and
(a) is a body corporate,
(b) is a wholly-owned subsidiary of
(i) an insurance company,
(ii) a bank, or
(iii) a non-bank financial institution, and
(c) has obtained approval from the Agency to manage plan funds under this
Act. 2. P.N.D.C.L. 333. V - 3663 [Issue 1]

n-bank financial institution, and
(c) has obtained approval from the Agency to manage plan funds under this
Act. 2. P.N.D.C.L. 333. V - 3663 [Issue 1]

ACT 679
Long-term Savings Scheme Act, 2004
33. Application for approval of funds manager
(1) A person who wishes to operate as a funds manager of a plan shall apply in writ
ing in the prescribed form to the Agency for approval. (2) The Agency shall within fourteen days of receiving an application for approval
and on satisfying itself that the applicant has satisfied the preconditions including the
payment of the fees required for approval, grant approval to the applicant. (3) The Agency may grant approval subject to the conditions or restrictions that the
Council considers appropriate and the Agency may at any time by written notice to a
funds manager vary a condition or restriction in relation to the approval. (4) A person granted approval to operate as a funds manager under this Act shall sat
isfy the security and investment requirements prescribed in the Regulations.

n granted approval to operate as a funds manager under this Act shall sat
isfy the security and investment requirements prescribed in the Regulations.

(5) Where the Agency is not satisfied with the application, the Agency may, in writ
ing to the applicant, within fourteen days after receiving the application,
(a) request the applicant to rectify an error in the application or to satisfy a pre
condition for the grant of approval, within twenty-one days and grant the
approval on the rectification of the error or satisfaction of the pre
conditions within the specified time; or failing which the Agency shall re
fuse to grant approval, or
(b) refuse to grant the approval. (6) Where an application for approval is refused, the Agency shall state the reasons
for the refusal in the notice of the refusal to the applicant. (7) An applicant dissatisfied with the Agency’s refusal to grant approval may apply
to the Security Exchange Commission for settlement of the dispute. (8) Where a settlement is not achieved under subsection (7) the applicant may apply
to the High Court for a review of the Agency’s decision. 34.

pute. (8) Where a settlement is not achieved under subsection (7) the applicant may apply
to the High Court for a review of the Agency’s decision. 34.

Revocation and suspension of funds manager’s approval
(1) The Agency
(a) shall revoke an approval granted to a person to operate as a funds manager
under this Act if that person ceases to satisfy any of the qualifications re
quired under section 32; and
(b) may revoke or suspend an approval given to a person to operate as a funds
manager if that person is in breach of any of the duties imposed under sec
tion 35 or is in breach of any of the provisions of this Act or the plan rules. (2) Where the Agency suspends or revokes an approval under subsection (1), the
Agency shall within seven days after the decision to suspend or revoke the approval give
notice of the decision to the funds manager affected by the decision. (3) Where the Agency suspends an approval given to a person to operate as a funds
manager, the Agency shall in the notice under subsection (2) specify the defect, omission
or breach which has occasioned the suspension and request the person to remedy the de
fect within thirty days after the notice. [Issue 1] V-3664

ssion
or breach which has occasioned the suspension and request the person to remedy the de
fect within thirty days after the notice. [Issue 1] V-3664

ACT 679
Long-term Savings Scheme Act, 2004
(4) If under subsection (3) the defect, omission or breach is remedied within the time
specified, the Agency shall by notice in writing to that person restore its approval for that
person to manage plan funds, otherwise the Agency shall revoke the approval granted to
that person to operate as a funds manager.

ts approval for that
person to manage plan funds, otherwise the Agency shall revoke the approval granted to
that person to operate as a funds manager.

(5) Where the Agency revokes an approval granted to a person to operate as a funds
manager under this Act
(a) subject to paragraph (d), the Agency shall immediately assume responsibil
ity for the management of the plan funds managed by the affected funds
manager and the depository institution holding the plan funds shall accord
immediate recognition to the Administrator and secretary of the Agency as
the signatories of the account of the plan funds to replace the signatures of
the funds manager;
(b) the Agency shall within seven days of revocation of the approval, notify
the general public through the electronic media, publication in the Gazette
and a newspaper of wide national circulation of the revocation;
(c) the Agency shall within seven days of revocation of an approval, issue a
written notice to every contributor and employer of the contributor, where
applicable, informing them of the action of the Agency and requesting
them to discontinue further contributions to the plan; and
(d) a contributor to a plan managed by the affected funds manager may by notice
to the Agency request the Agency to transfer that contributor’s portfolio to a
plan operated by a funds manager specified in the notice or may, subject to
section 30 (6), (7) and (8) withdraw the portfolio.

butor’s portfolio to a
plan operated by a funds manager specified in the notice or may, subject to
section 30 (6), (7) and (8) withdraw the portfolio.

(6) Despite subsection (5) where the revocation of the approval is in relation to
(a) a funds manager ceasing to satisfy the qualifications required under sec
tion 32, or
(b) insolvency of the funds manager,
the Agency shall refer the matter to the Securities and Exchange Commission for the nec
essary action. (7) A person who is dissatisfied with the decision of the Agency to revoke or suspend
an approval granted to that person by the Agency to operate as a funds manager under this
Act may apply to the Securities and Exchange Commission for settlement of the dispute. (8) Where a settlement is not achieved under subsection (7) the applicant may apply
to the High Court for a review of the Agency’s decision. (9) A depository institution which refuses or fails to comply with subsection (5) (a)
commits an offence and is liable on summary conviction to a fine of not less than two
thousand penalty units.3
35. Duties and prohibited activities of a funds manager
A funds manager shall
(a) manage the plan funds in accordance with the stated objectives of the plan;
(b) make investments not prohibited by the Agency;
3.

ds manager shall
(a) manage the plan funds in accordance with the stated objectives of the plan;
(b) make investments not prohibited by the Agency;
3.

The reference to a term of imprisonment has been omitted as an institution cannot be sent to jail. V - 3665 [Issue 1]

The reference to a term of imprisonment has been omitted as an institution cannot be sent to jail. V - 3665 [Issue 1]

ACT 679
Long-term Savings Scheme Act, 2004
(c) not pledge or otherwise encumber the plan assets;
(d) make investments on an arm’s length basis;
(e) ensure the solvency of the plan funds at all times and ensure that enough
funds are available for withdrawals as and when required;
(f) submit to each contributor at the intervals prescribed by the Agency, a pe
riodic account of contributions and returns on contributions;
(g) maintain adequate systems of internal controls;
(h) submit to the inspections that the trustee appointed under section 39 may in
the performance of the functions of a trustee, require;
(i) submit to the trustee at such intervals as shall be prescribed by the Agency,
periodic reports and accounts of contributions, returns on contributions and
withdrawals from the plan funds;
(j) submit on a date specified by the trustee any other reports and records that
the trustee in the performance of the duties of a trustee may require;
(k) submit to any technical audits that the Agency may require;
(/) submit the records and reports required by the Agency to the Agency;
(m) display evidence of the Agency’s approval to operate as a funds manager in
a conspicuous place on its premises and quote its approval number in any
advertisement or information document in which it offers its services as a
funds manager; and
(n) abide by the Rules and Regulations made under this Act or directions given
by the Agency and perform any other functions that may be imposed by the
plan rules and Regulations made under this Act.

this Act or directions given
by the Agency and perform any other functions that may be imposed by the
plan rules and Regulations made under this Act.

36. Permitted investment of plan fund
(1) The Agency shall determine an appropriate holding by Funds Managers of secure
interest bearing investments of plan funds so as to ensure the safety and liquidity of plans. (2) Subject to subsection (1) and the plan rules, a contributor may specify which of
the plan manager’s products the contributor’s portfolio should be invested in. 37. Permitted expenditure from plan
A funds manager shall not charge any expenditures or make any deductions from the
plan binds other than those prescribed by the Agency or authorised under this Act. 38. Fees of funds manager
A funds manager shall be paid out of gross earnings on investment of plan binds, a
fee as shall be agreed with each contributor subject to the limits determined by the
Agency through notices. 39. Appointment of trustee for plan
(1) A funds manager shall appoint for every plan, a trustee approved by the Agency. [Issue 1] V-3666

ough notices. 39. Appointment of trustee for plan
(1) A funds manager shall appoint for every plan, a trustee approved by the Agency. [Issue 1] V-3666

ACT 679
Long-term Savings Scheme Act, 2004
(2) A person shall not qualify to be appointed a trustee under subsection (1) unless
that person is an investment adviser, a trustee of a unit trust scheme or a custodian of a
mutual fund, licensed by the Securities and Exchange Commission under the Securities
Industry Act, 19934 as amended, and is
(a) a wholly-owned subsidiary of a bank or insurance company or a non-bank
financial institution;
(h) is independent of the funds manager;
(c) has satisfied any security requirement prescribed by the Agency to be satis
fied or to be paid; and
(d) has paid the requisite approval fee prescribed by the Agency. (3) A person who wishes to operate as a trustee for a plan shall apply in writing in the
prescribed form to the Agency for approval, accompanied by a copy of a trust deed for
the plan prepared in a form prescribed by the Agency. (4) The Agency shall within fourteen days of receiving an application for approval
and on satisfying itself that the applicant has satisfied the preconditions including the
payment of the fees required for approval, grant approval to the applicant.

ng itself that the applicant has satisfied the preconditions including the
payment of the fees required for approval, grant approval to the applicant.

(5) The Agency may grant approval subject to the conditions or restrictions that the
Council thinks fit, and the Agency may at any time by written notice to a trustee vary a
condition or restriction in relation to the approval. (6) Where the Agency is not satisfied with the application, the Agency may, in writ
ing to the applicant, within fourteen days after receiving the application
(a) request the applicant to rectify an error in the application or to satisfy a pre
condition for the grant of approval, within twenty-one days and grant the
approval on the rectification of the error or satisfaction of the pre-condition
within the specified time; or
(b) refuse to grant the approval. (7) Where an application for approval is refused, the Agency shall state the reasons
for the refusal, in the notice of the refusal to the applicant. (8) An applicant dissatisfied with the Agency’s refusal to grant approval may apply
to the Security Exchange Commission for settlement of the dispute. (9) Where a settlement is not achieved under subsection (8) the applicant may apply
to the High Court for a review of the Agency’s decision. 40.

pute. (9) Where a settlement is not achieved under subsection (8) the applicant may apply
to the High Court for a review of the Agency’s decision. 40.

Duties and powers of a trustee
(1) A trustee of a plan shall in addition to any other duties imposed by the trust deed
(a) hold plan assets in its name on behalf of contributors;
(b) where applicable, ensure that contributions are remitted to the funds man
ager in accordance with the plan rules and this Act;
(c) exercise fiduciary duties conferred by the trust deed in good faith and in the
interest of contributors;
4. P.N.D.C.L. 333. V - 3667 (Issue 1]

ct;
(c) exercise fiduciary duties conferred by the trust deed in good faith and in the
interest of contributors;
4. P.N.D.C.L. 333. V - 3667 (Issue 1]

ACT 679
Long-term Savings Scheme Act, 2004
(d) ensure that at the expiration of the period specified for the maturity of a
plan or an earlier period permitted by this Act, a contributor’s portfolio is
liquidated and paid to the contributor in accordance with the plan rules and
this Act;
(e) conduct the inspections of books and records of the funds manager as arc
necessary for the performance of the functions imposed on the trustee by
this Act and under the plan rules and notify the Agency of a breach of duty
on the part of the funds manager; and
(f) submit to the Agency on a date specified by the Agency, the records and
reports in relation to the performance of the functions of a trustee that the
Agency may require. (2) A trustee may with the approval of the Agency request a funds manager to submit
periodic accounts and reports of the plan funds as the trustee considers appropriate. 41.

the approval of the Agency request a funds manager to submit
periodic accounts and reports of the plan funds as the trustee considers appropriate. 41.

Suspension and revocation of trustee’s approval
(1) The Agency
(a) shall revoke an approval granted to a person to operate as a trustee of a
plan if that person ceases to satisfy any of the qualifications required under
section 39 (2),
(b) may revoke or suspend an approval given to a person to operate as a trustee
if that person is in breach of any of the duties imposed under section 40 or
is in breach of the plan rules. (2) The Agency shall, not later than seven days after making a decision to suspend or
revoke a trustee’s approval, inform the trustee in writing of the decision and the reasons
for the decision and request the trustee to directly inform contributors, their employers
and the funds manager of the suspension or revocation. (3) Where the approval of a trustee is suspended, the procedures specified under sub
sections (3) and (4) of section 34, shall apply to the trustee as appropriate.

approval of a trustee is suspended, the procedures specified under sub
sections (3) and (4) of section 34, shall apply to the trustee as appropriate.

(4) Where the Agency revokes an approval granted to a person to operate as a trustee
of a plan, the Agency shall within seven days of revocation of the approval, notify the
general public through the electronic media, publication in the Gazette and a newspaper
of wide national circulation of the revocation. (5) A person whose application for approval to act as a trustee for a plan is refused or
whose approval is suspended or revoked by the Agency may apply to the Securities and
Exchange Commission for a settlement of a dispute. (6) Where a settlement is not achieved under subsection (5) the applicant may apply
to the High Court for a review of the Agency’s decision. 42. Fees of trustee
A trustee shall be paid a fee agreed on with the funds manager subject to the limits de
termined by the Agency. [Issue 1] V - 3668

42. Fees of trustee
A trustee shall be paid a fee agreed on with the funds manager subject to the limits de
termined by the Agency. [Issue 1] V - 3668

ACT 679
Long-term Savings Scheme Act, 2004
Miscellaneous Matters
43. Dispute resolution
(1) Where a dispute arises between a contributor and a funds manager, or where a
dispute arises between a trustee and a funds manager, the dispute shall first be submitted
to the Agency. (2) A dispute arising between a contributor and an employer in relation to deductions
from the contributor’s salary or in relation to an employer’s breach of an agreement to
make contributions on behalf of the contributor shall be referred to the National Labour
Agency established under section 70 (3) of the Labour Act, 2003 (Act 651). 44. Accounts and audit of funds manager and trustee
(1) A funds manager or a trustee shall keep proper books and records in relation to
the plan in the form determined by the Agency.

manager and trustee
(1) A funds manager or a trustee shall keep proper books and records in relation to
the plan in the form determined by the Agency.

(2) A funds manager shall have an external auditor who shall audit the books and re
cords of the plan funds at least once a year, and prepare an audit report, which shall in
clude a statement
(a) on the extent of compliance with the provisions of this Act and the
Regulations;
(b) on the extent of compliance with the plan’s investment objective and other
requirements under this Act and under the plan rules;
(c) on the extent of solvency of the plan; and
(d) on any other matter that the Agency may require under this Act or under
the Regulations. (3) A trustee shall have an external auditor who shall audit the records of the trustee
relating to the plan funds at least once a year, and prepare an audit report, which shall
include a statement on
(a) the extent of compliance with the provisions of this Act and the Regulations,
(b) the extent of compliance with the trustee’s duties under the trust deed and
under this Act, and
(c) any other matter that the Agency may require under this Act or under the
Regulations.

rustee’s duties under the trust deed and
under this Act, and
(c) any other matter that the Agency may require under this Act or under the
Regulations.

(4) Without limiting the scope of subsections (2) and (3), the Agency may order
technical audits of the facilities, equipment, resources and accounts of a funds manager or
a trustee to be conducted, as the Agency considers appropriate. 45. Reports of funds manager or trustee
(1) A person who is a funds manager or a trustee shall submit an annual report to the
Agency within four months after the end of each financial year, detailing its activities in
relation to the Scheme in the preceding year. (2) A report under subsection (I) shall include the audit reports referred to in sec
tion 44 (2) and (3) and a report on any other matter that the Agency may prescribe. V-3669 (Issue 1]

hall include the audit reports referred to in sec
tion 44 (2) and (3) and a report on any other matter that the Agency may prescribe. V-3669 (Issue 1]

ACT 679
Long-term Savings Scheme Act, 2004
46. Financial year
The financial year of a funds manager or a trustee shall be the same as the financial
year of the Agency. 47. Protection of plan funds on liquidation
(1) In the event of a winding up by an employer,
(a) contributions made by that employer on behalf of a contributor before the
vesting period shall not be available to a liquidator of the employer; and
(b) unpaid contributions of the employer as agreed with a contributor and the
payroll deductions made from the contributor’s salary but which have not
been remitted to a funds manager at the time of liquidation, shall have
priority. (2) Where a funds manager is being liquidated,
(a) that funds manager shall not receive under a plan operated by that funds
manager, contributions from the date of the commencement of the winding
up process of the funds manager, and
(b) a plan operated by that funds manager may with the approval of the con
tributor and on the directions of the Agency be merged with a plan oper
ated by another funds manager by the transfer of the assets and liabilities of
the plan to that other funds manager.

Agency be merged with a plan oper
ated by another funds manager by the transfer of the assets and liabilities of
the plan to that other funds manager.

(3) Where a trustee is being liquidated, the funds manager of the plan to which the
trust relates shall with the approval of the contributor and the Agency appoint another
trustee approved by the Agency. 48. Offences
(1) A person who operates as a funds manager or as a trustee for a plan without the
relevant approval as required under this Act, commits an offence and is liable on sum
mary conviction to a fine of not less than two thousand penalty units or to a term of im
prisonment of not less than ten years or to both the fine and the imprisonment. (2) A person who operates
(a) as a funds manager to a plan, or
(b) as a trustee to a plan,
when the approval granted under this Act to operate has been revoked or suspended,
commits an offence and is liable on summary conviction to a fine of not less than one
thousand penalty units or to a term of imprisonment of not less than five years or to both
the fine and the imprisonment.

a fine of not less than one
thousand penalty units or to a term of imprisonment of not less than five years or to both
the fine and the imprisonment.

(3) An employer who makes deductions from a contributor’s salary for the purpose of
contribution to a plan and who fails to pay the sums deducted to a funds manager within
fourteen days after the end of the month in which the deduction was made, is liable to pay
interest on the amount not remitted at the prevailing 91 day Treasury Bill rate for each day
during which the amount remained unremitted and if the amount still remained unpaid
thirty days after the expiry of the initial fourteen days the employer commits an offence and
is liable on summary conviction to a fine of not less than one thousand penalty units or to a
term of imprisonment of not less than five years or to both the fine and the imprisonment. [Issue 1] V-3670

ss than one thousand penalty units or to a
term of imprisonment of not less than five years or to both the fine and the imprisonment. [Issue 1] V-3670

ACT 679
Long-term Savings Scheme Act, 2004
(4) Where a body corporate commits an offence under this Act, every director of that
body corporate shall be deemed to have committed that offence unless the director proves
that the offence was committed without the director’s consent or connivance or that the
director exercised the due diligence to prevent the commission of the offence which the
director ought to have exercised having regard to the nature of the director’s functions
and circumstances. 49. Regulations
(1) The Minister on the advice of the Agency may, by legislative instrument, make
Regulations for the effective implementation of this Act.

egulations
(1) The Minister on the advice of the Agency may, by legislative instrument, make
Regulations for the effective implementation of this Act.

(2) Regulations made under subsection (1), may prescribe for
(a) fees to be paid by a funds manager to the Agency for approval to operate as
a funds manager of a plan;
(b) fees to be paid by a Trustee to the Agency for approval to operate as a trus
tee of a plan;
(c) fees to be paid by a contributor to a funds manager and fees to be paid by a
Rinds manager to a trustee;
(d) security and investment requirements to be by a funds manager;
(e) the nature and types of investments that shall not be made by a funds man
ager from plan funds;
(f) the nature and type of expenditures that shall not be made by a funds man
ager from plan funds;
(g) the form of statements on contribution and returns on contributions that
must be submitted to a contributor by a funds manager; and
(h) for any other matter that will generally give effect to this Act. 50.

ontributions that
must be submitted to a contributor by a funds manager; and
(h) for any other matter that will generally give effect to this Act. 50.

Interpretation
In this Act, unless the context otherwise requires,
“Agency” means the Agency established under section 3;
“all purpose savings plan” means a plan to which a contributor contributes per
sonally or to which the contributor or the contributor’s employer or both the contribu
tor and the contributor’s employer contribute, to provide savings for purposes deter
mined by the contributor;
“Auditor-General” includes an auditor approved by the Auditor-General;
“contributor” means a person who joins a plan in accordance with section 23 (2)
and contributes to a plan on that person’s own behalf or on behalf of a minor or a per
son with disability;
“Council” means the governing body of the Agency established under section 8;
“educational savings plan” means a plan to which a contributor contributes per
sonally or to which the contributor or the contributor’s employer or both the contribu
tor and the contributor’s employer contribute, to provide savings for educational pur
poses for the contributor or a named beneficiary;
V-3671 [Issue 1]

r and the contributor’s employer contribute, to provide savings for educational pur
poses for the contributor or a named beneficiary;
V-3671 [Issue 1]

ACT 679
Long-term Savings Scheme Act, 2004
“functions” includes powers and duties;
“funds manager” means a person approved by the Agency to operate and manage
a plan and its related funds under this Act;
“gross earnings” means income earned on investment of plan hinds before
deductions;
“group personal retirement plan” means a plan to which a contributor contrib
utes personally, or to which a contributor or the contributor’s employer or both the
contributor and the contributor’s employer contribute, to provide savings for the con
tributor on the contributor’s retirement;
“home-ownership plan” means a plan to which a contributor contributes person
ally, or to which a contributor or the contributor’s employer or both the contributor
and the contributor’s employer contribute, to provide savings for the housing needs of
the contributor;
“individual retirement plan” means a plan to which a contributor contributes
personally, to provide savings for the contributor’s own retirement;
“Minister” means the Minister responsible for Finance;
“plan” means a savings plan and unless otherwise specified, includes a group per
sonal retirement plan, an individual retirement plan, a home-ownership plan, an educa
tional savings plan, an all purpose plan, and any other plan specified by the Minister;
“plan assets” means the total amount of contributions made to a plan and the re
turns earned on the contributions as variously invested in accordance with this Act,
the Regulations and the plan rules;
“plan funds” means contributions to a plan and income accruing from the in
vestments of the contributions;
“plan rules” includes rules made by the plan operator and accepted as binding by
the contributor, for the effective administration of plans, and rules relating to the ob
jectives, benefits, duties and obligations of the relevant parties under a plan;
“portfolio” includes the total amount of contributions and the returns earned on
the contributions standing to a contributor’s credit less the approved fees under this
Act and under the plan rules and before the end of the vesting period and employer
contributions made on behalf of the contributor;
“prescribe” means prescribed by the Regulations;
“Regulations” means the Regulations made under this Act;
“retirement” means the attainment of the retirement age, or on voluntary
retirement;
“Scheme” means the Scheme established by section 1;
“Securities and Exchange Commission” means the Securities and Exchange
Agency established under section 1 of the Securities Industry Act, 19935 as amended;
5.

ies and Exchange Commission” means the Securities and Exchange
Agency established under section 1 of the Securities Industry Act, 19935 as amended;
5.

P.N.D.C.L. 333. [Issue 1] V-3672

ACT 679
Long-term Savings Scheme Act, 2004
“trustee” means a person appointed by a funds manager and approved by the
Agency under this Act to hold plan assets on behalf of contributors to a plan;
“vesting period” means the period determined by the employer not exceeding
five years from the first contribution by the employer on behalf of the contributor dur
ing which period the contributor remained in the employment of the employer.
V - 3673 [Issue 1]