Establishment of INVEST Fund
Open ↗12.—(1) There is established a fund called the INVEST Fund into which must be paid all the following moneys:(a)
the sums appropriated from the Consolidated Fund and authorised to be paid into the Fund by or under any written law to enable the Fund to meet its liabilities under this Act or any other written law;
(b)
all revenues of Singapore allocated by written law to the Fund;
(c)
the net income from investments of moneys in the Fund authorised to be made by this Act or any other written law.
(2) There must also be paid into the Fund such sum from the Pension Fund established by the Pension Fund Act 1995 as the Minister for Finance may determine as the value of that part of the Pension Fund relating to all those officers in the uniformed services referred to in section 4(1)(a) who exercise an option in favour of joining the INVEST Plan in accordance with the regulations.
(3) The moneys referred to in subsections (1)(a) and (b) and (2) must be paid into the INVEST Fund as capital money, and must not be used to make payment of any dividend under the INVEST Plan.
(4) The Fund is deemed to be a Government fund for the purposes of any other written law.
(5) The Fund must be held, managed and administered separately from other Government funds.[35/2019]
(6) Except as otherwise expressly provided in this Act or regulations made under section 26, the Financial Procedure Act 1966 applies to the Fund.
(7) For the purposes of subsection (1)(c), the net income from investments is the amount ascertained by adding to, or deducting from, the income received from investments of moneys in the Fund, any profit derived or loss sustained (as the case may be) from the realisation of the investments.
Purposes of Fund
Open ↗13.—(1) Subject to subsection (2) and section 4F(2) of the Prevention of Corruption Act 1960, the moneys in the Fund may only be withdrawn and applied to meet any one or more of the following purposes:(a)
the payment of any pension, gratuity, allowance, compensation or other like benefit granted under the INVEST Plan or the Scheme;
(b)
all expenses incidental to or arising from the administration, investment and management of moneys in the Fund;
(c)
any other expenses relating to the granting of any pension, gratuity, allowance, compensation or other like benefit under the INVEST Plan or the Scheme (as the case may be) and expressly provided by written law to be met out of the Fund.
(2) The Fund comprising —(a)
the sums appropriated from the Consolidated Fund and authorised to be paid into the Fund by or under any written law to meet its liabilities under the INVEST Plan or the Scheme; and
(b)
the sum referred to in section 12(2),
must not be withdrawn and applied to meet the payment of any pension, gratuity, allowance, compensation or other like benefit granted under the Scheme, or any other expenses relating to the granting of any pension, gratuity, allowance, compensation or other like benefit under the Scheme.
Administration of Fund
Open ↗14.—(1) The Fund is to be managed and administered by the Board appointed under section 19 subject to the direction and control of the Minister.
(2) The Board must furnish to the Minister such information relating to the general management and administration of the Fund as the Minister may require.
Investment
Open ↗15.—(1) Despite section 7(3) of the Financial Procedure Act 1966, moneys standing to the credit of the Fund which are, in the opinion of the Board, moneys that are not for the time being required for the purpose of making payments out of the Fund under this Act and the INVEST Plan or the Scheme may, so far as is practicable, be invested by the Board in such stocks, funds, securities and investments as the Board thinks fit (but not any stock, bond or security issued by the Government) and in any manner, but the Board must manage the Fund so that moneys that are from time to time required to pay benefits that are payable out of the Fund are available for that purpose.
(2) The Board may invest moneys standing to the credit of the Fund that are available for investment through an investment manager or managers who undertake to invest, and manage the investment of those moneys on behalf of the Board.
(3) If any investment manager is engaged by the Board under subsection (2), the Board must ensure that the investment manager —(a)
operates within the investment powers of the Board and the investment strategy and policy as determined for the time being by the Board; and
(b)
reports to the Board on the state of its investments and the investment market at the times and in the manner as the Board determines.
(4) In this section —“derivatives contract” has the meaning given by section 2(1) of the Securities and Futures Act 2001;
“effective management”, for an investment portfolio, includes —(a)
the efficient exposure of the portfolio to certain assets or classes of assets;
(b)
the diversification of investments within the portfolio;
(c)
the reduction of costs relating to the portfolio; or
(d)
the enhancement of the value of, or the returns on, the portfolio;
“investments” means —(a)
the acquisition of assets, or interests in assets, with the expectation of obtaining returns (whether in the form of capital or income) on such assets or interests; or
(b)
the use of financial products (including, without limitation, any derivatives contract) or the entering into financial arrangements for the purposes of effective management of an investment portfolio.[35/2019]
Deficiencies
Open ↗16.—(1) Subject to subsection (2), where the moneys in the Fund are insufficient to pay any pension, gratuity, allowance, compensation or other like benefit at the time when such payment becomes due under the INVEST Plan or the Scheme, the deficiency is charged on and payable out of the Consolidated Fund.
(2) Subsection (1) applies only to any pension, gratuity, allowance, compensation or other like benefit —(a)
in respect of any uniformed service officer referred to in section 4(1)(a) who opts to join the INVEST Plan; or
(b)
in respect of any officer referred to in section 4A(4)(a) of the Prevention of Corruption Act 1960 who opts to join the Scheme under that Act.
Fund surpluses
Open ↗17. The Minister may, by warrant under his or her hand, authorise the transfer to the Consolidated Fund any moneys in the Fund which, in the opinion of the Minister and the Minister for Finance, are not immediately required to meet the liabilities or the purposes of the Fund.
Withdrawals
Open ↗18.—(1) Moneys must not be withdrawn from the Fund unless they are charged upon the Fund or are authorised or directed to be withdrawn or transferred under this Act.
(2) Payment must not be made out of the Fund unless the payment is authorised by the Minister.
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
