Clause 11

No payments made by the authority of the Director from the Fund under the provisions of section 8, 9 or 10 of this Act, nor the rights of any member of the Fund acquired thereunder, shall be assignable or transferable or liable to be attached, sequestrated or levied upon for or in respect of any debt or claim whatsoever.

Every redundancy payment paid into the Fund under section 6 of this Act and every payment out of the Fund under section 8, 9 or 10 of this Act shall be exempt from income tax under the Income Tax Ordinance (Cap. 166).

All monies paid out of the Fund on the death of any member of the Fund shall be deemed to be impressed with a trust in favour of the person nominated under subsection (5) of this section by the deceased member or if no such person has been nominated the person or persons determined by the Public Trustee in accordance with subsection (6) of this section shall be entitled thereto but shall be deemed not to form part of the deceased member’s estate or to be subject to his debts. The provisions of this subsection shall be without prejudice to the operation of the Estate Duty Ordinance (Cap. 162).

No amounts standing to the credit of a member of the Fund shall be subject to the debts of the member of the Fund, nor shall such amounts pass to the Official Assignee on the bankruptcy of such employee, but if such employee is adjudicated a bankrupt or is declared insolvent by judgment of the court, such amount shall be deemed to be impressed with a trust in favour of the persons entitled thereto on the death of the member of the Fund.

Any member of the Fund may by a memorandum executed in the prescribed manner nominate a person or persons to receive in his or their own right the amount standing to his credit in the Fund on his death as the said memorandum shall indicate and any employee who does not nominate such a person may be required by the Director to declare in writing that he does not desire so to do.

If at the time of the death of any member of the Fund there is no person nominated under subsection (5) of this section, the amount payable out of the Fund shall be paid to the Public Trustee for disposal in accordance with any written law for the time being in force, and if any person nominated, other than a widow, shall be under the age of eighteen years at the time of payment of the amount payable out of the Fund, his portion of the amount payable shall similarly be paid to the Public Trustee for the benefit of such nominated person.

The receipt of a person or persons nominated under subsection (5) of this section or of the Public Trustee shall be a discharge to the Director for such portions of the monies payable out of the Fund on the death of a member of the Fund as shall be payable to such person or persons or the Public Trustee under the provisions of this section.