Education Endowment Scheme Bill

“Board” means the Central Provident Fund Board established under the Central Provident Fund Act [Cap. 36];

“child” means a person who is of school age;

“Council” means the Advisory Council established under section 9;

“EduSave account” means an EduSave account maintained under section 5(3);

“EduSave Fund” means the EduSave Fund established under section 5(1);

“eligible ordinary member” means any ordinary member who is eligible for the payment of the prescribed amount of contribution under section 8(1);

“Endowment Fund” means the Education Endowment Fund established under section 3(1);

“member” means an ordinary member or a voluntary member of the EduSave Fund;

“ordinary member” means an ordinary member of the EduSave Fund;

“parent”, in relation to a child, includes a guardian of the child;

“prescribed school” means an institution for providing full-time primary or secondary education or vocational training, being —

“school age” means such age as may be prescribed;

“voluntary member” means a voluntary member of the EduSave Fund.

For the purposes of this Act, there shall be established a fund to be called the Education Endowment Fund into which shall be paid all capital money provided by Parliament pursuant to this Act and all income of that Fund and out of which shall be met all payments authorised to be paid under this Act.

The Minister shall be responsible for the administration of the Endowment Fund and all moneys belonging to that Fund may be deposited in any bank and invested in any investment authorised under the Financial Procedure Act [Cap. 109].

The Endowment Fund shall be deemed to be a Government fund for the purposes of any written law.

Upon the commencement of this Act, the Government shall pay into the Endowment Fund as capital money such sum as the Minister may determine out of moneys to be provided by Parliament.

For the purposes of providing, in each year, income to enable contributions to be made to eligible ordinary members under this Act, the Minister may from time to time pay into the Endowment Fund such sums of capital money as the Minister may determine out of moneys to be provided by Parliament.

The capital money of the Endowment Fund shall not be used for any purpose other than for investment.

Where at any time there is a permanent diminution of the value of the capital money of the Endowment Fund, the Minister shall make good such diminution from the income of the Endowment Fund.

For the purposes of this Act, there shall be established a fund to be called the EduSave Fund into which shall be paid all contributions made under sections 7 and 8 and all income of that Fund and out of which shall be met all payments authorised to be paid under this Act.

The Board shall administer the EduSave Fund and all moneys belonging to that Fund may be —

The Board shall maintain for each member in respect of the money standing to his credit in the EduSave Fund an account to be called the EduSave account from which withdrawals may be made under section 11 or 12.

The Board shall have such powers and shall perform such duties as are given or imposed by this Act or as may be prescribed by the Minister and the Minister or the Board may by instrument in writing delegate to any person all or any of those powers and duties.

The parent of any child who is —

Any child for whom a voluntary contribution has been made under subsection (1) shall become, by virtue of this section, a voluntary member of the EduSave Fund.

There shall be paid to every ordinary member in each year out of the income of the Endowment Fund the prescribed amount of contribution for that year if on 1st January of that year he is of school age and at any time during that year he is a full-time pupil at a prescribed school.

The Board shall cause to be credited —

The Board shall, as far as practicable, credit the prescribed amount of contribution payable to an eligible ordinary member under subsection (1) to the EduSave account of that member on or before 31st January of each year, commencing from the year 1992.

For the purpose of enabling the Board to credit the prescribed amount of contribution to the EduSave accounts of eligible ordinary members for the year 1992 under this section, the Minister shall pay to the Board such sum of money as is adequate for that purpose out of moneys to be provided by Parliament.

Interest shall be payable on the amount standing to the credit of every member in the EduSave Fund at such rate per annum as the Minister may from time to time prescribe.

For the purposes of this section and section 7(1), the “prescribed amount of contribution” in respect of the year 1992 and every subsequent year is such amount as the Minister may, by order published in the Gazette, from time to time prescribe.

For the purposes of advising the Minister as to the application of the Endowment Fund and EduSave Fund, there shall be established an Advisory Council.

The Council shall consist of 5 to 7 members appointed by the Minister.

The Minister shall appoint one of the members as chairman.

The Schedule shall have effect with respect to the Council.

Any money standing to the credit of any member in the EduSave account may be withdrawn from the EduSave Fund with the authority of the Board in accordance with this section and section 12.

Subject to this section, the parent of a member below the age of 21 years, or a member who has attained the age of 21 years, shall be entitled to withdraw the sum standing to the credit of the member in the EduSave account at any time for the following purposes:

No member or parent of a member shall be entitled to withdraw any sum standing to the credit of the member in the EduSave account to pay for such school fees or miscellaneous fees of the member as may be prescribed.

For the purposes of this section and section 12(1), “school” means any prescribed school, junior college and institution of higher learning in Singapore.

The Board may, subject to such terms and conditions as it may impose, permit the parent of a member below the age of 21 years, or a member who has attained the age of 21 years, to donate to the school of the member such portion of the sum standing to his credit in the EduSave account as the parent of the member, or the member, as the case may be, may determine.

Where any member has attained the age of 21 years, the Board shall, subject to subsection (3), transfer the sum standing to his credit in the EduSave account to his ordinary account, if any, maintained under section 13 of the Central Provident Fund Act [Cap. 36] and thereupon he shall cease to be a member.

Where a member has attained the age of 21 years and has an ordinary account referred to in subsection (2), the Board may, upon an application by the member, permit him to remain a member until such time as the Board may determine.

Upon an application for the withdrawal of the sum of money standing to the credit of a member by the parent of the member or by the member, as the case may be, under section 11 or 12, the Board may authorise the payment to the school of the member of such sum as the parent or member is entitled to withdraw from the EduSave Fund.

All applications for withdrawal shall be supported by such evidence as may be prescribed and by such further evidence as the Board may reasonably require.

On the death of a member, the total amount standing to his credit in the EduSave account shall be paid to the Public Trustee for disposal in accordance with any written law for the time being in force.

The receipt of the Public Trustee shall be a good discharge to the Board for such portions of the moneys payable out of the EduSave Fund on the death of a member as are payable to the Public Trustee under subsection (1).

All moneys paid out of the EduSave Fund on the death of any member shall be deemed to be impressed with a trust in favour of the person or persons determined by the Public Trustee in accordance with subsection (1) to be entitled thereto but shall, without prejudice to the Estate Duty Act [Cap. 96], be deemed not to form part of the deceased member’s estate or to be subject to his debts.

The Board shall keep proper accounts and records of all transactions and affairs relating to the EduSave Fund and shall do all things necessary to ensure that all payments out of that Fund are correctly made and properly authorised and that adequate control is maintained over the assets and receipts of that Fund.

The Board shall, as soon as practicable after the close of each financial year but not later than 30th June of each year, prepare and submit financial statements in respect of that year to the auditor of the EduSave Fund.

The accounts of the EduSave Fund shall be audited by the Auditor-General or such other auditor as may be appointed annually by the Minister in consultation with the Auditor-General.

A person shall not be qualified for appointment as an auditor under subsection (1) unless he is an approved company auditor under the Companies Act [Cap. 50].

The auditor or any person authorised by him is entitled at all reasonable times to full and free access to all accounting and other records relating, directly or indirectly, to the financial transactions of the EduSave Fund and may make copies of, or extracts from, any such accounting and other records.

The auditor shall in his report state —

The auditor shall, as soon as practicable after the accounts have been submitted for audit, send a report of his audit to the Board and shall also submit such periodical and special reports to the Minister and to the Board as may appear to him to be necessary or as the Minister or the Board may require.

The auditor or any person authorised by him may require any person to furnish him with such information in the possession of that person or to which that person has access as the auditor considers necessary for the purposes of his functions under this Act.

Any person who fails without reasonable excuse to comply with any requirement of the auditor under subsection (1) or who otherwise hinders, obstructs or delays the auditor in the performance of his duties or the exercise of his powers shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000.

The Board shall, as soon as the financial statements of the EduSave Fund have been audited in accordance with the provisions of this Act, send to the Minister a copy of the audited financial statements together with a copy of the auditor’s report.

Where the Auditor-General is not the auditor of the EduSave Fund, a copy of the audited financial statements and any report made by the auditor shall be forwarded to the Auditor-General when they are submitted to the Board.

The Minister shall as soon as practicable cause a copy of the audited financial statements and the auditor’s reports of the Endowment Fund and EduSave Fund to be presented to Parliament.

The Board shall, as soon as practicable but not later than 30th September of each year, submit to the Minister an annual report in respect of the administration of the EduSave Fund by the Board during the preceding financial year, and the Minister shall present a copy of every such report to Parliament.

The Minister shall cause an annual report in respect of the administration of the Endowment Fund during each year to be prepared and shall present a copy of every such report to Parliament.

Notwithstanding subsection (1), the Minister may at any time request the Board to furnish him with any information concerning any matter relating to the administration of the EduSave Fund by the Board, and the Board shall furnish him with the information required, and afford him or his representative all necessary facilities for the verification of the information required.