must be a body corporate<sup>and be registered withthe Registrar of Associations(section4).</sup> The rules of the fund must<sup>stipulate,</sup><sup>_inter alia,_the rate of contributionspaid by the</sup> employer and employees,<sup>the rate of accrualandmethod of calculation of benefits,the</sup> conditions of membership,<sup>the appointmentof employerand employeerepresentativesto</sup> the management committee<sup>of the fund,the securityto be provided by officers of the</sup> fund, the appointment of<sup>auditors,thedisclosure of informationon the rules and</sup> performance of the fund,<sup>and the dissolution of thefund and disposalof itsassets,</sup> including amalgamation<sup>with anyother fund (section6 and SecondSchedule of the Act).</sup> The fund is managed by<sup>a management committeeof no less than5 persons,nominated</sup> by the employer and the<sup>employees(section7). However,no parity of representationis</sup> required. The Act specifies<sup>that no member of the managementcommittee shallbe liable</sup> for any losses unless they<sup>havebeencaused by willfulnegligenceor fraud (section8).</sup> Payments to the fund by<sup>employersandemployees are irrevocable(section10). This</sup> implies that any surplus<sup>overand above the presentvalueof actuarialliabilitiesbelongs</sup> to the fund, although employers<sup>are not preventedfrom taking contributionholidays.</sup> Audited accounts must be<sup>submittedto the Registrarwithin3 months of the end</sup> of each financial year (section<sup>11). The incomeandexpenditurestatementand the</sup> balance sheet must be<sup>auditedby 2auditors,one appointed by the employerand the other</sup> by the employees (section<sup>12).However,the Actdoes not requirethe hiringof qualified</sup> auditors. The Registrar has<sup>broad powersof inspectionand investigation,may causean</sup> inquiry into the affairs of<sup>a fund,and may with theapproval of the Presidentstrike off the</sup> Register a fund for reasons<sup>set out in its decision(sections13and 14).Such Registrar</sup> decisions may be appealed<sup>to the SupremeCourt.On windingup, theassetsof the fund</sup> are vested in the Registrar.<sup>Theyarefirst used to dischargeall third party debtsand</sup> liabilities and are then applied<sup>to the payment of the present value,as determinedby an</sup> actuary, of the amounts<sup>due to pensionersand thento the accruedbenefitsof employees</sup> in active service (section<sup>15). Afee ispayable by each fund tothe Registrarof</sup> Associations to meet its<sup>expenses(section16).This amounts to 0.25percentof the</sup> investment income of each<sup>fund.</sup> The Income Tax Regulations<sup>1996 (as amended)stipulate that pensionschemes</sup> must be approved by the<sup>Tax Commissioner,who requireseither' an insurancecertificate</sup> or registration with the<sup>Registrar of Associations(section5(1)(b)(ii)).The Tax</sup> Commissioner must, _inter_<sup>_alia,_be satisfiedthat:employeecontributionsare reasonable;</sup> all members are treated<sup>equally; annual pensionbenefits,excludingNPF pensions,do not</sup> exceed two-thirds of final<sup>pensionableemoluments(section5(2)(c)(vi));commuted</sup> lump-sum payments do<sup>not exceed12.5times theamount commutedwhich, in turn,does</sup> not exceed 25 percent of<sup>theannual pension due(section 5(2)(c)(vii));permanent</sup> disability and death benefits<sup>do not exceedtwice final pensionableemoluments;</sup> dependent pensions do<sup>not exceedspecified limits;eligibilityand withdrawalprovisions</sup> are reasonable; powers of<sup>investment of fund assetsare reasonable;annualpension</sup> increases do not exceed<sup>same rank salaryincreasesor3 percentof the precedingyear's</sup> pension; employees leaving<sup>after 5 years'serviceare entitledto preservetheir accrued</sup> benefits in the fund of<sup>the old employer,or transferthe actuarialvalue of these benefits to</sup> the pension fund of their<sup>new employer,or transferthis valueto anapproved personal</sup> pension scheme (section<sup>5(2)(c)(xvii));and, employees leaving beforecompleting five</sup> 15