Tabung Angkatan Tentera (Amendment) Act 2016

Section 2, paragraph 4(c), sections 5 and 6, paragraph 7(a)

and sections 9 and 11 come into operation on 1 January 2016.

in the shoulder note, by inserting after the words

“Compulsory contributions” the words “of servicemen”;

in subsection (4), by substituting for the words “the

Regular Forces (Pensions, Gratuities and Other Grants)

Regulations 1979 [P.U. (A) 77/1979]” the words “any law for the time being in force relating to pension, gratuity or other benefits applicable to regular forces”; and

by inserting after subsection (4) the following subsection:

“(5)  Where a serviceman is promoted to an officer, the deduction of his salary under subsection (1)

shall cease and shall continue under section 9a.”.

In respect of every contribution made under subsection (1), 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.

An officer who contributes under subsection (1) who has completed less than twenty years of service and has not elected to be paid terminal gratuity shall, upon completion of his service, be paid the following amount:

An officer who contributes under subsection (1) 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.

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.

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.

Where an officer who contributes under subsection (1)

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.”.

Amendment of section 10

in subsection (1), by inserting after the word “9” the words “or 9a”; and

in subsection (2), by substituting for the words

“Subsection 9(2)” the words “Subsections 9(2) and 9a(2)

and section 12”.

Amendment of section 12

in subsection (1)—

by substituting for the words “section 9” the words “sections 9 and 9a”; and

in subsection (2), by inserting after the words “thereon a dwelling house” the words “or any other purpose as may be determined by the Lembaga”.

An officer who has made voluntary contributions under section 10 of the principal Act prior to 1 January 2016 may, on or after 1 January 2016, continue to contribute under the said section 10 or elect to contribute under section 9a of the principal

Act, as introduced by section 5 of this Act, within such time as may be determined by the Lembaga.

Where an officer referred to in subsection (2) has elected to contribute under section 9a, the deductions of his salary under section 10 of the principal Act shall cease.

An officer referred to in subsection (2) who has elected to not contribute under section 9a and does not continue his contribution under section 10 may apply for the withdrawal of any amount standing to the credit of his account within such time as may be determined by the Lembaga.

On the date of coming into operation of section 12 of this

Act, any regulations made under paragraph 22(gb) of the principal

Act before the date of coming into operation of section 12 of this

Act shall continue to remain in full force and effect, and for such purpose it shall be treated as if paragraph 22(gb) of the principal

Act had not been deleted, until the Lembaga exercises its powers under section 12a of the principal Act upon which the Lembaga with the approval of the Minister shall revoke such regulations.

KUALA LUMPUR