Malaysia legislation
Section 17
Section 17
Constitution to provide protection of benefits under provident fund scheme
The Constitution may establish a provident fund scheme for its employees and the following provisions shall apply to any such provident scheme—
(a)
no assurance on the life of any contributor under any provident scheme and no moneys or other benefits received under such assurance or in any other manner under any such scheme shall be capable of being taken in execution or otherwise garnished, attached, sequestered or levied upon for or in respect of any debt or claim whatsoever against the contributor or his estate unless the
University in its discretion shall have assigned such assurance, moneys or other benefits to the contributor for his absolute use and benefit or, in the case of his death, to his legal personal representative;
(b)
subject to any discretionary trusts or powers as to the application thereof vested by any Act or rules relating thereto in the University or other person administering the provident scheme, all moneys and benefits arising from any such provident scheme shall be deemed to be impressed with a trust in favour of the objects entitled thereto under the will or intestacy of any deceased contributor;
(c)
no donation or contribution to a fund established under a provident scheme or interest thereon shall be assignable or liable to be attached, sequestered or levied upon for or in respect of any debt or claim whatsoever other than a debt due to the University;
26 Laws of Malaysia ACT 30
(d)
no such donation or contribution or interest shall be subject to the debts of the contributor, nor shall such donation, contribution or interest be subject to the debts of the contributor, nor shall such donation, contribution or interest pass to the Director General of Insolvency on the bankruptcy of such contributor, but, if such contributor is adjudicated a bankrupt or is declared insolvent by judgement of the court, such donation or contribution or interest shall, subject to the provisions of this Act and of the Constitution and of any Act or rules relating thereto, be deemed to be impressed with a trust in favour of the persons entitled thereto on the death of the contributor;
(e)
the bankruptcy of a contributor shall not effect the making of deductions from the salary of the contributor in accordance with any Act or rules relating thereto, but such deductions shall continue to be made notwithstanding the provisions of any written law, and the portion of salary so deducted shall be deemed not to form part of his after-acquired property;
(f)
subject to the provisions of any Act or rules relating thereto, all moneys payable or paid out of any fund established under a provident scheme on the death of a contributor shall be deemed to be impressed with a trust in favour of the persons entitled thereto under the will or intestacy of such deceased contributor, or under a nomination in such form as may be prescribed under the scheme, but shall not be deemed to form part of his estate or be subject to the payment of his debts.
Transitional provisions