The Tabung and its objects
(1) There is established a fund to be known as the “Tabung Angkatan Tentera” (hereinafter referred to as the “Tabung”) for the following purposes:
(a) the primary purposes of providing superannuation and other benefits including benefits under the scheme established under section 15A, to persons specified under paragraph (3)(a), and the veteran annuity scheme for the benefit of the persons specified under paragraph (3)(aa); and
⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯ NOTE—These Ordinances have been repealed by the Armed Forces Act 1972 [Act 77].
(b) the ancillary purposes of promoting the socio-economic development and welfare of persons specified under paragraph (3)(b).
(1A) The following shall be paid into the Tabung:
(a) all contributions made as hereinafter provided and such other sums as are directed by this Act to be paid into the Tabung;
(b) all moneys earned from investment or by the operation of any project, agency, scheme or enterprise financed from the Tabung and the Reserve Fund established under section 11;
(bb) an annual grant from the Federal Consolidated Fund for the ancillary purposes and matters related thereto under paragraph (1)(b);
(c) all grants, donations, endowment, gifts, loans, contributions and bequests made to or in favour of the Tabung;
(d) all sums from time to time falling due to the Tabung in respect of payments of any loan made from the Tabung and the interest payable in respect of any such loan;
(e) moneys earned or arising from any property, investment, mortgages, charges or debentures acquired by or vested in the Tabung;
(f) all other sums which may in any manner become payable to or vested in the Tabung in respect of any matter incidental to its powers and duties.
(2) The Tabung may be applied for—
(a) withdrawals of deposits with such profits as may be decided by the Lembaga in accordance with the provisions of this Act;
(aa) the purchase of units in any unit trust schemes for the benefit of and to be allocated to contributors and the
administrative costs and other costs relating to the unit trust benefit as determined by the Lembaga;
(b) repayments and interests on borrowings and such other outgoings and expenditure as may be permitted by this Act or any regulations thereunder to be paid out of the Tabung;
(ba) payments of death and disablement benefits pursuant to the scheme;
(bb) payments of annuities pursuant to the veteran annuity scheme;
(bc) the socio-economic activities, welfare programmes and any other activities and benefits which would advance the socio-economic conditions of any retiring personnel or retired personnel or of any designated members of the volunteer forces, including loans to such persons;
(bd) defraying the expenditure incurred by the Lembaga or any other body including a corporation established under section 23, charged with the responsibility of undertaking the activities, programmes or benefits mentioned in paragraph (bc);
(c) administrative expenses including salaries and termination benefits;
(d) other expenses incidental to the management of the Tabung and the functions of the Lembaga including any moneys required to satisfy any judgment, decision or award against the Lembaga, Chairman, any member of the Lembaga, the Investment Panel, any member of the Investment Panel, officer, servant or agent of the Lembaga, by any court or tribunal, in respect of any act, neglect or default done or committed by him in such capacity.
(3) For the purpose of this section—
(a) superannuation and other benefits including benefits under the scheme established under section 15A shall be given to—
(i) servicemen;
(iA) officers who contribute to the Tabung;
(ii) other members of the regular forces of Malaysia who contribute to the Tabung; and
(iii) mobilised members of the volunteer forces who contribute to the Tabung;
(aa) benefits under the veteran annuity scheme shall be given to the servicemen referred to in paragraph 15D(1)(a) and officers referred to in paragraph 15D(1)(b); and
(b) ancillary benefits shall be given to—
(i) retiring personnel or retired personnel of the regular forces of Malaysia; or
(ii) designated members of the volunteer forces, as may be determined by the Lembaga.
(4) The Lembaga may only apply such moneys from the Tabung for the purposes mentioned in paragraph (1)(b), (2)(bc) and (bd) where the Lembaga has applied the moneys referred to in paragraph (1A)(bb) and where there are sufficient funds to discharge its obligations under section 11.
(Deleted by Act A929).
Establishment and incorporation of Lembaga Tabung
(1) For the purpose of managing and maintaining the Tabung there is established a body corporate by the name of “Lembaga Tabung” (hereinafter referred to as “the Lembaga”) with perpetual succession.
(2) The Lembaga shall have a common seal and may sue and be sued in its name and, subject to and for the purposes of this Act, may enter into contracts and acquire, purchase, take, hold and possess movable and immovable property of every description and may convey, assign, surrender, yield up, charge, mortgage, demise, reassign, transfer or otherwise dispose of or deal with any movable or
immovable property or any interest vested in the Lembaga upon such terms as the Lembaga may think fit.
(3) The Lembaga shall consist of—
(a) a Chairman who shall be the Secretary General of the Ministry of Defence or such other person as may be appointed by the Minister;
(b) a Deputy Chairman who shall be a representative of the Ministry of Defence;
(c) the Deputy Secretary General to the Treasury;
(ca) the Chief Executive who shall be an ex-officio member;
(d) four members to be appointed by the Minister to represent the contributors, one of whom shall be the Chief of Defence Forces;
(e) such other members not exceeding four in number to be appointed by the Minister on the advice of the Lembaga.
(3A) In determining whether a person is a fit and proper for the purposes of subsection (3), the Minister shall have regard to—
(a) the probity, competence and soundness of judgment of the person in fulfilling his responsibilities as a member of the Lembaga; and
(b) the diligence with which the person is likely to fulfil his responsibilities as a member of the Lembaga.
(3B) Without prejudice to the generality of subsection (3), a person shall be disqualified from being appointed or being a member of the Lembaga, if he—
(a) is an undischarged bankrupt;
⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯ NOTE—Previously known as the “Chief of the Armed Forces Staff”—see subsection 10(2) of the Constitution (Amendment) (No. 2) Act 2001 [Act A1130] which c.i.f. on 28 September 2001.
(b) has been convicted of an offence relating to the promotion, formation or management of a company or corporation;
(c) has been convicted of an offence involving bribery, fraud or dishonesty;
(d) has been convicted of an offence under any written law which is designed for protecting members of the public;
(e) has been disqualified by an order of the court to act as a director under any written law; or
(f) has engaged in or has been associated with, any business practice, or otherwise conducted himself in such a way as to cast doubt on his competence and soundness of judgment.
(3C) The circumstances referred to in subsection (3B) shall be applicable to circumstances in or outside Malaysia.
(4) The provisions of the First Schedule shall have effect with respect to the Lembaga.
Functions of the Lembaga and establishment of committees by the Lembaga
(1) It shall be the function of the Lembaga to administer and manage the Tabung in such a manner as would further the respective interests of the contributors as well as the retiring personnel and retired personnel of the regular forces of Malaysia and the mobilised members of the volunteer forces and to formulate policies in connection with any of its functions and to do such other things as may be done under this Act.
(2) For the purpose of assisting the Lembaga in the performance of its functions, the Lembaga may establish such committees consisting of such persons as the Lembaga may think fit.
(3) The Lembaga may employ and pay agents and technical advisers including advocates and solicitors, bankers, stockbrokers, surveyors or valuers or other persons, to transact any business or to do any act required to be done in the execution of its functions or for better
carrying into effect of the purposes of this Act, and may pay from the Tabung all charges and expenses so incurred.
Establishment of an Investment Panel
(1) There shall be established an Investment Panel responsible for matters pertaining to the investment of the assets of the Tabung and the Reserve Fund established under section 11.
(2) The Investment Panel shall consist of—
(a) a Chairman who shall be appointed by the Minister on the advice of the Lembaga;
(b) (Deleted by Act A1506);
(c) the Chief of Defence Forces;
(ca) a representative from the Ministry of Defence;
(d) a representative from the Ministry of Finance;
(e) four other members with experience and expertise in business, investment, investment risks management, actuary, banking, legal or finance who shall be appointed by the Minister on the advice of the Lembaga.
(2A) For the purpose of paragraph (2)(a), the Chairman shall not be the Chairman of the Lembaga.
(2B) In determining whether a person is fit and proper for the purposes of subsection (2), the Minister shall have regard to—
(a) the probity, competence and soundness of judgment of the person in fulfilling his responsibilities as a member of the Investment Panel; and
(b) the diligence with which the person is likely to fulfil his responsibilities as a member of the Investment Panel.
(2C) Without prejudice to the generality of subsection (2), a person shall be disqualified from being appointed or being a member of the Investment Panel, if he—
(a) is an undischarged bankrupt;
(b) has been convicted of an offence relating to the promotion, formation or management of a company or corporation;
(c) has been convicted of an offence involving bribery, fraud or dishonesty;
(d) has been convicted of an offence under any written law which is designed for protecting members of the public;
(e) has been disqualified by an order of the court to act as a director under any written law; or
(f) has engaged in or has been associated with, any business practice, or otherwise conducted himself in such a way as to cast doubt on his competence and soundness of judgment.
(2D) The circumstances referred in subsection (2C) shall be applicable to circumstances in or outside Malaysia.
(3) The provisions of the Second Schedule shall have effect with respect to the Investment Panel.
Power of Minister in relation to the Lembaga
(1) The Minister may give to the Lembaga such directions of a general character not inconsistent with the provisions of this Act as relates to the exercise and performance of its functions and the Lembaga shall give effect to all such directions.
(2) The Lembaga shall furnish the Minister with such returns, accounts and other information with respect to the property and activities of the Lembaga as he may from time to time require.
Duties and responsibilities of members, etc.
(1) A member of the Lembaga, a member of the Investment Panel, a member of the committee of the Lembaga, officers and servants of the Lembaga shall—
(a) at all times, exercise his powers in accordance with this Act for a proper purpose and in good faith in the best interest of the Tabung; and
(b) exercise his duties and responsibilities with reasonable care, skill and diligence based on the knowledge, skills and experience which may reasonably be expected of a person having the same duties and responsibilities.
(2) A member of the Lembaga, a member of the Investment Panel, a member of the committee of the Lembaga, officers and servants of the Lembaga who has breached or failed to comply, has contributed to the breach or non-compliance or has contravenes any provision of this Act may, for any loss or damage caused by his act or omission, be held personally liable.
Contribution of servicemen
(1) There shall be deducted from the monthly salary of a serviceman who does not qualify for pension an amount equal to ten per centum of such salary calculated to the nearest five sen, as his contribution to the Tabung. The amount of the contribution shall be credited to the account of the serviceman.
(1A) A serviceman may also request a further deduction exceeding ten per centum of his monthly salary as may be determined by the serviceman as his contribution to the Tabung and the amount of the contribution shall be credited to the account of the serviceman.
(2) In respect of every contribution made under subsections (1) and (1A), there shall be paid to the Tabung from the Consolidated Fund to the credit of the serviceman’s account an amount equal to fifteen per centum of his monthly salary, calculated to the nearest five sen.
(3) Where a serviceman qualifies for pension—
(a) the deduction of his salary under subsections (1) and (1A) shall continue to be made until he is discharged from service with the regular forces of Malaysia;
(b) the payment under subsection (2) shall cease to be made in respect of the contribution made under paragraph (a); and
(c) all payments made under subsection (2) which are still standing to the credit of the serviceman’s account shall be withdrawn and credited into the Consolidated Fund.
(4) Where a serviceman who has not qualified for pension is granted a disability pension or a disability gratuity pursuant to any law for the time being in force relating to pension, gratuity or other benefits applicable to regular forces, he shall also be eligible to be paid, in addition to his contributions to the Tabung under subsections (1) and (1A), all payments made under subsection (2) standing to the credit of his account.
(5) Where a serviceman is promoted to an officer, the deduction of his salary under subsections (1) and (1A) shall cease and shall continue under section 9A.
Contribution of officers
(1) There shall be deducted from the monthly salary of an officer an amount equal to ten per centum of his monthly salary calculated to the nearest five sen as his contribution to the Tabung and the amount of the contribution shall be credited to the account of the officer.
(1A) An officer may also request a further deduction exceeding ten per centum of his monthly salary as may be determined by the officer as his contribution to the Tabung and the amount of the contribution shall be credited to the account of the officer.
(2) In respect of every contribution made under subsections (1) and (1A), there shall be recorded a notional contribution to the Tabung from the Consolidated Fund to the credit of the officer’s account an amount equal to fifteen per centum of his monthly salary, calculated to the nearest five sen.
(3) An officer who contributes under subsections (1) and (1A) who has completed less than twenty years of service and has neither elected to be paid terminal gratuity nor elected to participate in the veteran annuity scheme shall, upon completion of his service, be paid the following amount:
(a) the value of his contribution to the Tabung and the dividend for the duration of the contribution; and
(b) the value of the contribution from the Consolidated Fund that has been recorded in accordance with subsection (2).
(c) (Deleted by Act A1547).
(3A) An officer who contributes under subsections (1) and (1A) who has completed less than twenty years of service and has not elected to be paid terminal gratuity but elects to participate in the veteran annuity scheme shall, upon the completion of his service, be paid the value of his contribution to the Tabung and the dividend for the duration of the contribution, and the value of the contribution from the Consolidated Fund that has been recorded in accordance with subsection (2) shall be paid into the Tabung to the credit of such officer’s account.
(4) An officer who contributes under subsections (1) and (1A) who has completed less than twenty years of service and has elected to be paid terminal gratuity shall, upon completion of his service, be paid the value of his contribution to the Tabung and the dividend for the duration of such contribution.
(5) An officer who qualifies for pension but completes his service in any duration after twenty years until he attains the age of compulsory retirement shall, upon completion of his service be paid the value of his contribution to the Tabung for the whole period of his service and the dividend for the duration of his contribution.
(6) Payment under subsection (3) shall be made notwithstanding that the officer is granted a disability pension or disability gratuity pursuant to the provisions of any written law for the time being in force relating to pension, gratuity, or other grants or benefits applicable to regular forces.
(7) Where an officer who contributes under subsections (1) and (1A) has completed twenty-five years of service or has attained the
age of compulsory retirement, whichever is earlier, the deduction of his monthly salary shall cease and the notional contribution to the Tabung from the Consolidated Fund under subsection (2) shall cease to be recorded.
Voluntary contributions to the Tabung
(1) Any member of the regular forces of Malaysia who is not liable to contribute under section 9 or 9A and any mobilised member of the volunteer forces may elect to make monthly contribution to the Tabung.
(2) Subsections 9(2) and 9A(2) and section 12 shall not apply to any contribution made under this section.
(3) The amount of contributions payable by the contributor under this section shall be made by way of deductions from the monthly salary of the contributor and such amount shall be credited to the account of the contributor.
Declaration of profit
(1) Subject to the provisions of this section, the Lembaga may, with the approval of the Minister, at or after the end of the financial year of each year, declare a rate of profit on the contributions to the Tabung based on the actual financial performance of the Lembaga for that year.
(2) No profit shall be declared unless the Lembaga has established a Reserve Fund, and no profit shall be declared in any year unless at the end of that year—
(a) (Deleted by Act A1668);
(b) the assets of the Reserve Fund were not less than such percentage of the amounts actually standing to the credit of the contributors as at the end of that year including the profit as the Treasury may approve;
(ba) provision is made by the Lembaga for payment into the scheme established under section 15A of such sums of
moneys sufficient for the purpose of the scheme established under section 15A; and
(c) the Lembaga is satisfied with the ability of the Tabung to meet all payments required to be paid under this Act is not endangered by the declaration of the rate.
(2A) For the purpose of declaration of profit under subsection (1), the Lembaga shall be regarded as solvent if the Lembaga is able to pay its debts as and when the debts become due within twelve months immediately after the declaration is made.
(2B) The Lembaga may, from time to time as it considers necessary, appoint a qualified and independent actuary to assist the Lembaga in assessing its financial performance pursuant to this section and such assessment may be served as a guide to the Lembaga.
(3) Any payments required to be made out of the Tabung shall, in so far as the moneys in that Tabung are insufficient for that purpose, be made out of the Reserve Fund.
(4) The Lembaga may from time to time transfer assets from the Reserve Fund to the Tabung or from that Tabung to the Reserve Fund.
Withdrawals
(1) Subject to this Act, any amount standing to the credit of a contributor’s account under this Act may only be withdrawn—
(a) on the death of the contributor;
(b) when the contributor has been certified as physically or mentally incapacitated from engaging in the service;
(c) on the contributor attaining the age of fifty years and, where the contributor is an officer, on the officer attaining the age of compulsory retirement;
(d) thirty days after the contributor has retired from service; or
(e) thirty days after the contributor has been discharged from service.
(1A) Where the withdrawal under paragraph (1)(c), (d) or (e) is made by a serviceman referred to in paragraph 15D(1)(a) or an officer referred to in paragraph 15D(1)(b)—
(a) the withdrawal shall only apply to—
(i) in respect of a serviceman—
(A) his contribution to the Tabung and the dividend for the duration of the contribution; and
(B) the dividend for the payments made under subsection 9(2) but excluding the dividend for the year immediately preceding the discharge of the serviceman from service with the regular forces of Malaysia; or
(ii) in respect of an officer, his contribution to the Tabung and the dividend for the duration of the contribution; and
(b) the remaining amount standing to the credit of the serviceman’s or officer’s account under this Act may only be withdrawn on the death of the serviceman or officer, as the case may be, or in the circumstances as may be approved by the Lembaga.
(1B) For the purpose of withdrawal under paragraph 12(1)(a) or (b), the Lembaga shall authorize the withdrawal of all sum of money standing to the credit of the contributor’s account under this Act, if—
(a) applied by the heir of the contributor on the death of the contributor; or
(b) applied by the next of kin of the contributor who has been certified to be physically or mentally incapacitated from engaging in the service.
(2) Notwithstanding subsection (1), a contributor may withdraw a part of the amount standing to the credit of his account for the purpose of enabling him to purchase a dwelling house or land for the purpose of constructing thereon a dwelling house or any other purpose as may be determined by the Lembaga.
(2A) The contributor who has been discharged or has retired from service may opt to withdraw or retain any amount standing to the credit of his account in the Tabung and the amount standing shall be entitled to receive a rate of profit on the contributions retained in the Tabung under this Act.
(3) For the avoidance of doubt it is declared that the expression “service” in paragraphs 1(d) and (e) means service with the armed forces as—
(a) a serviceman until he has been discharged as a serviceman from the armed forces;
(b) a serviceman and if he is granted a commission as an officer until he has retired as an officer from the armed forces;
(c) an officer until he has retired from the armed forces; and
(d) a mobilised member of the volunteer forces until he has been discharged or has retired from the armed forces.
Lembaga to determine terms and conditions of withdrawal, etc.
The Lembaga, with the approval of the Minister, shall determine the terms and conditions for the withdrawal of amounts from the Tabung, the percentages of the contributor’s contribution which may be withdrawn and any other matters incidental to such withdrawal.
Contributions not to be assigned or attached, etc.
Notwithstanding anything to the contrary contained in any other written law—
(a) no amount of any contribution made under this Act;
(b) no amount paid or payable under subsection 9(2) or 9A(2); and
(c) no amount standing to the credit of a contributor,
shall, except for the purpose of satisfying a debt due to the Government of the Federation or of a State, be assignable or transferable or liable to be attached, sequestered or levied upon for or in respect of, any debt or claim whatsoever, nor shall the Director General of Insolvency be entitled to or have any claim on any such amount.
Power to borrow
The Lembaga may, with the approval of the Minister and the Minister of Finance, borrow any sums required by the Lembaga for the purpose of this Act and on such terms and conditions and for such period as the Minister of Finance may approve.
Investment by Lembaga
(1) The Lembaga may, on the advice given by the Investment Panel, invest moneys which are in the Tabung and in the Reserve Fund based on the strategic asset allocation as approved by the Minister and Minister of Finance, to the extent and in the following manner:
(a) by way of deposit in any currency in—
(i) the Central Bank of Malaysia;
(ii) any financial institution licensed under the Financial Services Act 2013 [Act 758];
(iii) any development financial institution as defined under the Development Financial Institutions Act 2002 [Act 618];
(iv) any Islamic bank licensed under the Islamic Financial Services Act 2013 [Act 759]; or
(v) any bank or financial institution established by or under any written law in or outside Malaysia;
⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯ NOTE—Previously known as the “Official Assignee”—see section 17 of the Bankruptcy (Amendment) Act 2003 [Act A1197] which c.i.f. on 1 October 2003—see P.U. (B) 295/2003.
(b) in money market instruments, including treasury bills, bankers’ acceptance, certificates of deposit and any financial instruments recognized by the relevant regulatory body in any currency;
(c) in bonds, commercial notes, private debt securities, promissory notes and bills of exchange within the meaning of the Bills of Exchange Act 1949 [Act 204] and other negotiable instruments of similar nature on terms remunerative to the Lembaga, in respect of any company or corporation or in respect of any public authority or corporation in which the Federal Government has an interest;
(d) in securities issued or fully guaranteed by any sovereign government, supranational or multilateral organization and includes securities where any sovereign government, supranational or multilateral organization is the obligor;
(e) in securities issued or fully guaranteed by the Government of Malaysia, secured by any sovereign government, supranational or multilateral organization and includes securities where any sovereign government, supranational or multilateral organization is the obligor and any instrument issued by the Central Bank of Malaysia;
(f) in the acquisition or subscription for shares or debentures in any public company whose securities are listed or have been approved for listing on a stock exchange in Malaysia, the issue or sale of which has been approved under the Capital Market and Services Act 2007 [Act 671] or securities in a company which has been approved to be listed in any recognized stock exchange outside Malaysia subject to the listing of such security being approved by law in that foreign jurisdiction;
(g) in the securities of which shall include bonds, notes mortgage papers, commercial notes and other debt instruments of companies or corporations which are not listed and quoted on any stock exchange established in Malaysia and in the securities of companies or corporations which are incorporated in foreign jurisdiction;
(h) in the acquisition of moveable or immovable property and interest therein located in Malaysia or in any foreign jurisdiction;
(i) in the development of buildings and infrastructure located in Malaysia or in any foreign jurisdiction;
(j) in purchasing securities or subscribing to any product for the purpose of hedging or carrying out dealings in any derivatives instruments for the instrument of the Tabung;
(k) in funds domiciled in Malaysia or in any foreign jurisdiction which include segregated mandate which invest in the assets under this section;
(l) in products as approved by the Securities Commission Malaysia or any other relevant regulators in any foreign jurisdiction;
(m) in sale, purchase, repurchase, borrowing or lending, of or other dealings in, currencies or other financial instruments traded in the money market or foreign exchange market for the purpose of exercising investment which has been approved under this section; and
(n) in any other investment with the approval of the Minister and Minister of Finance.
Establishment of death and disablement benefits scheme
(1) There shall be established a scheme to be known as the death and disablement benefits scheme for the payment of death and disablement benefits in respect of contributors.
(2) Where a contributor—
(a) dies while in service; or
(b) is discharged from service by reason of infirmity of mind or body,
the Lembaga may at its discretion pay respectively—
(i) death benefits; or
(ii) disablement benefits,
in such quantum and to such person as may be provided in regulations made under section 22.
(3) For the avoidance of doubt it is declared that—
(a) death benefits; or
(b) disablement benefits,
payable pursuant to the scheme do not, respectively, form any part of the estate of—
(i) such deceased contributor; or
(ii) such contributor who dies at any time prior to the payment of disablement benefits to him.
(4) Where any payment of death or disablement benefits is made in good faith and in accordance with the provisions of this Act and of regulations made under section 22, such payment shall constitute a full and proper discharge of all liability and no action, suit or proceeding for such payment or calling such payment into question shall be brought or shall lie against the Tabung, the Lembaga or any of the members, officers or servants of the Lembaga.
Minister may suspend, vary or discontinue death and disablement benefits scheme
(1) Notwithstanding anything to the contrary in this Act, where the Minister considers it necessary so to do, he may, on the advice of the Lembaga, by order in the Gazette and subject to such conditions as he may consider necessary to impose, suspend, vary or discontinue the scheme.
(2) Where the Minister suspends the scheme under subsection (1), no death or disablement benefits under the scheme shall be payable
unless and until the Minister, on the advice of the Lembaga, by order in the Gazette and subject to such conditions as he may consider necessary to impose, revokes the order of suspension made under subsection (1) and, where he so does, the scheme shall accordingly be reactivated.
(3) Where the Minister varies the scheme under subsection (1), any death or disablement benefits under the scheme shall be payable in accordance with the order of variation made under subsection (1).
(4) Where the Minister discontinues the scheme under subsection (1), all death and disablement benefits under the scheme shall cease to be payable in accordance with the order of discontinuance made under subsection (1) and any sums of moneys still available under paragraph 11 (2)(ba) for the purpose of the scheme shall be paid into the Tabung.
(5) Where the Minister makes any order under this section, the Lembaga shall, if necessary, make regulations, or amend any regulations made, under section 22 to give effect to that order.
Unit trust benefit
(1) The Lembaga may, if it thinks fit, purchase units in unit trust schemes for the benefit of and to be allocated to contributors in accordance with regulations made under subsection (3).
(2) The unit trust benefit shall be accounted for in a separate account from the accounts referred to in sections 9, 9A and 10.
(3) In addition to its powers under section 22, the Lembaga may, with the approval of the Minister, make such regulations as it thinks necessary for the purpose of subsection (1).
Establishment of veteran annuity scheme
(1) There shall be established a scheme to be known as the veteran annuity scheme for the payments of annuities to—
(a) a serviceman who fulfils the following conditions:
(i) he has been discharged from service with the regular forces of Malaysia except on the ground of misconduct; and
(ii) he is not qualified for pension; and
(b) an officer who fulfils the following conditions:
(i) he has completed less than twenty years of service and has not been terminated on the ground of misconduct;
(ii) he has not elected to be paid terminal gratuity; and
(iii) he has elected to participate in the veteran annuity scheme.
(2) The annuities shall be paid on a monthly basis in such quantum as may be determined by the Lembaga from the annual profit declared on—
(a) the payment credited under subsection 9(2) to the account of a serviceman referred to in paragraph
(1)(a); or
(b) the value of the contribution from the Consolidated Fund recorded in accordance with subsection 9 A (2) and paid into the Tabung to the credit of the account of the officer referred to in paragraph (1)(b).
(3) The payments of annuities under subsection (2) shall cease to be payable if the amount referred to in paragraph (2) (a) or (b), as the case may be, is withdrawn under paragraph 12(1 A )(b).
(4) The contribution to the credit of a serviceman referred to in paragraph (1)(a) and an officer referred to in paragraph (1)(b) shall not be reckoned for the purposes of section 15 C .
Annual estimates
The Lembaga shall, not later than one month before the commencement of each financial year, consider and approve an estimate of the expenditure of the Lembaga (including capital expenditure) for the ensuing year.
Accounts and audit
(1) The Lembaga shall cause to be kept proper accounts and other records in respect of its operations and shall cause to be prepared statements of accounts in respect of each financial year.
(2) The accounts of the Lembaga shall be audited annually by the Auditor General or any other auditor appointed by the Lembaga with the approval of the Minister of Finance.
(3) After the end of each financial year, as soon as the accounts of the Lembaga have been audited, the Lembaga shall cause a copy of the statement of accounts to be submitted to the Minister, together with a copy of any audit observation.
(4) The Minister shall cause a copy of every such statement and observation to be laid before each House of Parliament.
Annual report
(1) The Lembaga shall, not later than 30 June in each year, cause to be made and submitted to the Minister a report dealing with the activities of the Lembaga during the preceding financial year and containing such information relating to the proceedings and policy of the Lembaga as the Minister may from time to time direct.
(2) The Minister shall cause a copy of every such report to be laid before each House of Parliament.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
