THE REPUBLIC OF KIRIBATI
(No. 15 of 1997)

I assent,

(Sgd: T. Tito)
Beretitenti
29/12/1997

An Act to provide for the continuation of payment of pension, gratuity or other allowance payable under the Pensions Ordinance and Repeal of the same Pensions Ordinance; and for connected purposes

Commencement:
1997

Made by the Maneaba ni Maungatabu and assented to by the Beretitenti.

Short Title

1. This Act may be cited as the Pensions Act 1997.

Interpretation

2. In this Act, unless the context otherwise requires -

"the Beretitenti" means the Beretitenti, acting in accordance with the advice of the Public Service Commission;

"pensioner" means an I-Kiribati citizen who has been granted a pension pursuant to the Pensions Ordinance and remain entitled to receive such a pension as at the commencement of this Act.

"Pensions Ordinance" means the Pensions Ordinance (Cap. 10), Nos. 3 of 1941, 2 of 1944, 3 of 1945, 8 of 1946, 4 of 1949, 8 of 1951, 8 of 1952, 1 of 1953, 8 of 1954, 8 of 1955, 2 of 1957 and 14 of 1957, and 5 of 1967 as set out in the Schedule.

Repeal of Cap. 10

3. The Pensions Ordinance is hereby repealed.

Gratuities and Allowances

4. All gratuities and allowances previously granted pursuant to the Pensions Ordinance to pensioners shall continue to be paid by the Republic from the Consolidated Fund subject to the provisions of this Act.

Pensions, etc., not of right

5. (1) No pensioner shall have an absolute right to compensation for past services or to pension, gratuity or other allowance; nor shall anything in this Act affect the right of the Republic to dismiss any officer at any time and without compensation.

(2) Where it is established to the satisfaction of the Beretitenti that an officer has been guilty of negligence, irregularity or misconduct the pension, gratuity or other allowance may be reduced or altogether withheld.

Suspension of pensions on re-employment

6. If an officer to whom a pension has been granted under the Pensions Ordinance or under the Pensions Ordinance 1929 is appointed to employment to another office in the public service the payment of his pension may, if the Beretitenti thinks fit, be suspended during the period of his re-employment.

Pensions, etc., not to be assignable

7. A pension, gratuity or other allowance granted under the Pensions Ordinance shall not be assignable or transferable except for the purpose of satisfying -

(a) a debt due to the Government of Kiribati; or

(b) an order of any court for the payment of periodical sums of money towards the maintenance of the wife or former wife or minor child of the officer to whom the pension gratuity or other allowance was granted,

and shall not be liable to be attached, sequestered or levied upon for or in respect of any debt or claim whatever except a debt due to the Government of Kiribati.

Pensions, etc. to cease on bankruptcy

8. (1) If any person to whom a pension or other allowance has been granted under the Pensions Ordinance is adjudicated bankrupt or is declared insolvent by judgment of any competent court, then such pension or allowance shall forthwith cease.

(2) If any person is adjudicated bankrupt or declared insolvent as aforesaid either -

(a) after retirement in circumstances in which he is eligible for pension or allowance under the Pensions Ordinance but before the pension or allowance is granted; or

(b) before such retirement, and he shall not have obtained his discharge from bankruptcy or insolvency at the date of retirement;

then, in the former case any pension or allowance eventually granted to him shall cease as from the date of adjudication or declaration as the case may be and, in the latter case, the pension or allowance may be granted, but shall cease forthwith and not become payable.

(3) Where a pension or allowance ceases by reason of this section, it shall be lawful for the Beretitenti from time to time during the remainder of such person's life, or during such shorter period or periods, either continuous or discontinuous, as the Beretitenti, shall think fit, to direct all or any part of the moneys to which such person would have been entitled by way of pension or allowance, had he not become bankrupt or insolvent, to be paid to, or applied for the maintenance or benefit of, all or any to the exclusion of the other or others, of the following, that is to say, such person and any wife, child or children of his, in such proportions and manner as the Beretitenti, thinks proper, and such moneys shall be paid or applied accordingly.

(4) Moneys applied for the discharge of the debts of the person whose pension or allowance has so ceased shall, for the purposes of this section, be regarded as applied for his benefit.

(5) When a person whose pension or allowance has so ceased obtains his discharge from bankruptcy or insolvency, it shall be lawful for the Beretitenti to direct that the pension or allowance shall be restored as from the date of such discharge or any later date, and the pension or allowance shall be restored accordingly.

Pensions, etc., may cease on conviction

9. (1) If any person to whom a pension or other allowance has been granted under the Pensions Ordinance is sentenced to a form of imprisonment by any competent court for any offence, such pension or allowance shall, if the Beretitenti, so directs, cease as from such date as the Beretitenti determines.

(2) Where a pension or allowance ceases by reason of this section it shall be lawful for the Beretitenti, to direct all or any part of the moneys to which such person would have been entitled by way of pension or allowance had he not been sentenced as aforesaid to be paid, or applied, in the same manner in all respects as prescribed in the preceding section, and such moneys shall be paid or applied accordingly.

(3) If such person after conviction at any time receives a free pardon, the pension or allowance shall be restored with retrospective effect; but in determining whether arrears of such pension or allowance are payable to such person and in commuting the amount thereof, account shall be taken of all moneys paid or applied under the preceding subsection.

Pensions, etc., may cease on accepting certain appointment

10. If any person to whom a pension or other allowance has been granted under the Pensions Ordinance otherwise than under section 17 of that Ordinance, becomes either a director of any company the principal part of whose business is in any way directly concerned with the Republic, or an officer or servant employed in the Republic by any such company, without the prior permission of the Beretitenti in writing, such pension or allowance shall cease if the Beretitenti so directs:

Provided that it shall be lawful for the Beretitenti, on being satisfied that the person in respect of whose pension or allowance any such direction shall have been given has ceased to be a director of such company or to be employed as an officer or servant of such company in the Republic as the case may be to give directions for the restoration of such pension or allowance, with retrospective effect, if he shall see fit, to such a date as he shall specify, and the pension or allowance shall be restored in accordance with any such directions.

Gratuity where an officer dies in the service or after retirement

11. Where an officer to whom a pension, gratuity or other allowance has been granted under the Pensions Ordinance dies after retirement and the sum paid or payable to him at his death on account of any pension, gratuity of other allowance in respect of any public service are less than the amount of the annual pensionable emoluments enjoyed by him at the date of his retirement, it shall be lawful for the Beretitenti to grant to his legal personal representative a gratuity equal to the deficiency.

Inflation Adjustments

12. (1) Subject to subsection (2), the Beretitenti acting in accordance with the advice of Cabinet may from time to time direct that all pensions, gratuities and allowances granted under the Pensions Ordinance, and which are still payable to pensioners after the passing of this Act, be increased to allow for inflation.

(2) It shall not be a requirement that where there is inflation over any given period of time there shall necessarily be a corresponding increase in the said pensions gratuities and other allowances and the amount of any such increase is not required to correspond with the rate of inflation for such period.
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THE PENSIONS ACT 1997

EXPLANATORY MEMORANDUM

1. The principal object of this Act is to empower the government to adjust according to inflation any amount of pensions, gratuities and allowances already granted under the Pensions Ordinance 1941 (Cap. 10) and which are still payable to pensioners after the passing of this Act (Clause 12).

2. Further the Act retains certain provisions of the Pensions Ordinance 1941 (as amended) which are still in force and applicable to pensioners before and after independence and up to now. These relate to gratuities and allowances which shall continue to be paid by the Republic from the Consolidated Fund (Clause 4); Pensions etc. not of right (clause 5); Suspension of pension on re-employment (clause 6); Pensions not to be assignable (clause 7); Pensions to cease on bankruptcy (clause 8); Pensions may cease on conviction (clause 9); Pensions may cease on accepting certain appointment (clause 10); and Payment of gratuity to a pensioner’s legal representative after his or her death (clause 11).

3. The Pensions Ordinance 1941 (No 3 of 41) is repealed (clause 3) and for the avoidance of any doubt as regards the rights and entitlements of pensioners under that Ordinance the full texts of that Ordinance is set out in the Schedule (Clause 2).

Michael N. Takabwebwe
Attorney General
27 October 1996