A BILL intituled An Act to amend the Employees Social

A BILL intituled An Act to amend the Employees' Social Security Act 1969. ENACTED by the Parliament of Malaysia as follows: Short title and commencement 1. (1) This Act may be cited as the Employees' Social Security (Amendment) Act 2004. (2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette. Amendment of section 2 2. The Employees' Social Security Act 1969 [Act 4], which is referred to as the "principal Act" in this Act, is amended in section 2— (a) in subsection (3), in the definition of "dependant"— (i) by substituting for paragraph (a) the following paragraph: "(a) a widow or widower or a child; and"; and 2 Bill (ii) in paragraph (b)— (A) by substituting for the words "if wholly or partly dependent on the earnings of the insured person at the time of his death-" the words " if there is no widow or widower or child-"; (B) by substituting for subparagraph (ii) the following subparagraph: "(ii) an unmarried minor brother or sister or a widowed minor sister;"; and (C) in subparagraph (vi), by deleting the words "other than a widowed mother"; and (b) by inserting after subsection (10) the following subsection: '(10 A) "Inspector" means an Inspector appointed under section 12 and includes the Director General and every Deputy Director General;'. Amendment of section 6 3. Subsection 6(10) of the principal Act is amended— (a) by substituting for the full stop after the word "correspond" a colon; and (b) by inserting below the existing provisions the following proviso to that subsection: "Provided that where the aggregate of the different assumed monthly wages to which the different contributions correspond exceed the maximum assumed monthly wage, the assumed monthly wage shall be such maximum monthly wage.". Amendment of section 10 4. Section 10 of the principal Act is amended— (a) in paragraph (d), by inserting after the words "the entry" the words "in an approved manner"; and Employees' Social Security (Amendment) 3 (b) in paragraph (e), by substituting for the words "books or forms or the replacement of the words "materials, books or forms or the replacement of materials,". Amendment of section 12 5. Section 12 of the principal Act is amended— (a) in subsection (1) — (i) by substituting for the words "this Act, within such area or areas as he may assign to them:" the words "this Act."; and (ii) by deleting the proviso to that subsection; (b) by substituting for subsection (2) the following subsection: "(2) Subjects to subsection (3), an Inspector appointed under subsection (1) shall have all the powers, functions and duties conferred under this Act."; (c) by substituting for subsection (3) the following subsection: "(3) An Inspector shall be subject to the direction and control of the Director General or of such other officer or servant of the Organization as may be authorized by the Director General to act on behalf of the Director General, and of any other Inspector superior to the Inspector in rank, and shall exercise his powers, perform his functions and discharge his duties under this Act in compliance with such directions, instructions, conditions, restrictions or limitations as the Director General, or an officer or servant of the Organization authorized to act on behalf of the Director General or any other Inspector superior to the Inspector in rank, may specify orally or in writing, either generally, or in any particular case or circumstances."; and (d) by inserting after subsection (3) the following subsection: "(4) The Director General and Deputy Directors General shall have all the powers of an Inspector.". 4 Bill New sections 12 A , 12 B and 12c 6. The principal Act is amended by inserting after section 12 the following sections: "Powers of examination and search 12A. Subject to any regulations made under section 105, an Inspector may at any reasonable time^(a) make such examination and inquiry as may be necessary for ascertaining whether the provisions of this Act or the regulations or rules made there under are being or have been complied with; (b) at any reasonable time enter any premises or place occupied by any principal employer or immediate employer for the purpose of such examination and inquiry; (c) examine the principal employer or immediate employer or his agent or servant or any person found in such premises or place or any person whom the Inspector has reasonable cause to believe to be or have been an employee; (d) make copies of or take extracts from any register, books or other documents maintained in such premises or place; and (e) exercise such other powers as may be necessary for carrying this Act into effect. Obstruction to exercise of powers by an Inspector 12B. (1) No person shall— (a) refuse any Inspector exercising his power under section 12A access to any premises or place or any part thereof; (b) assault, obstruct, hinder or delay such Inspector in effecting any entrance which he is entitled to effect; (c) fail to comply with any lawful demands of an Inspector execution of his powers under section 12A ; (d) refuse to give to an Inspector any information which may reasonably be required of such person; Employees' Social Security (Amendment) 5 (e) fail to produce to, or conceal or attempt to conceal from, an Inspector, any property, book or other document including electronic records in relation to which the Inspector has reasonable grounds for suspecting that an offence has been or is being committed under this Act; or (f) furnish as true to an Inspector, information which he knows or has reason to believe to be false. (2) Any person who contravenes subsection (1) shall be guilty of an offence. Power to examine persons 12c. (1) An Inspector making any examination or inquiry under section 12A may examine orally any person whom he believes to be acquainted with the facts and circumstances of the case and may for such purpose summon any such person to attend at the time and place specified in such summons. (2) The person examined under subsection (1) shall be legally bound to answer all questions relating to such case put to him by the examining Inspector, but such person may refuse to answer any question the answer to which would have a tendency to expose him to a criminal charge or penalty or forfeiture. (3) A person making a statement under this section shall be legally bound to state the truth, whether or not such statement is made wholly or partly in answer to questions. (4) An Inspector examining a person under subsection (1) shall first inform that person of the provisions of subsections (2) and (3). (5) A statement made by any person under this section shall, whenever possible, be taken down in writing and signed by the person making it or affixed with his thumb-print, as the case may be, after it has been read to him in the language in which he made it and after he has been given an opportunity to make any corrections he may wish.". 6 Amendment of section 13 Bill 7. The principal Act is amended by substituting for section 13 the following section: "Determination of contributions in certain cases 13. (1) An Inspector may assess any contributions which are due from any principal or immediate employer based on any information available, if the employer— (a) fails to keep or maintain any statement, particulars, register book or any record pertaining to each employee as required to be kept or maintained by him under this Act; or (b) fails or refuses to submit any statement, particulars, register book or record pertaining to each employee as required under this Act. (2) The assessment made under subsection (1) shall be sufficient proof of the Organization's claim for the recovery of any contributions under section 84 or for the recovery of the amount determined by such assessment as a debt due to the Organization under section 14. (3) Any assessment made under this section shall be served either personally or by registered post.". New section 13A 8. The principal Act is amended by inserting after section 13 the following section: "Power of Director General to ask for information and application for search warrant 13A. (1) For the purpose of obtaining full information for ascertaining whether any person is liable to pay contributions under this Act, the Director General or any Inspector appointed Employees' Social Security (Amendment) 7 by the Director General for the purpose may by notice in writing require any person— (a) to furnish to the Director General or such Inspector within the time specified in the notice any information or particulars as specified in the notice; or (b) to attend personally before the Director General or such Inspector and to produce for examination all books, records and other documents including electronic records which the Director General or such Inspector deems necessary; or (c) to furnish the information or particulars in accordance with paragraph (a) and also to attend in accordance with paragraph (b). (2) Any person who fails to comply with the provisions of subsection (1) shall be guilty of an offence. (3) Whenever it appears to any Magistrate, upon written information on oath, and after any enquiry he may think necessary, that there are reasonable grounds for suspecting that there are on any particular premises any book, account, record (including electronic record) or other document, the production of which has been required pursuant to subsection (1) and which has not been produced in compliance with that requirement, such Magistrate may issue a warrant authorizing the Director General or any person named therein with or without assistance— (a) to search the premises and to break open and search any cupboard, drawer, chest, trunk, box, package or other receptacle, whether a fixture or not, in the premises; and (b) to take possession of, or secure against interference, any book, account, record (including electronic record) or other document that appears to be a book, account, record or other document the production of which was so required.". 8 Amendment of section 14 Bill 9. Section 14 of the principal Act is amended by inserting after the words "Any contribution" the words "or interest". New section 14 A 10. Part II of the principal Act is amended by inserting after section 14 the following section: "Interest on contribution in arrears 14A. Where the amount of the monthly contributions or part of any monthly contributions which are payable by an employer under section 6 is not paid within such period as may be prescribed by the regulations, the employer shall be liable to pay interest to be credited to the Organization on such amount at such rate as may be prescribed by the regulations in respect of any period during which such amount remains unpaid.". Amendment of section 17 11. Section 17 of the principal Act is amended— (a) in paragraph (2)(ii), by substituting for the words "of his first entry into insurance under this Act and the date" the words "when contributions first become payable by him under this Act and the month immediately preceding the month in which"; (b) in subsection (3), by substituting for the words "of his first entry into insurance under this Act and the date on" the words "when contributions first become payable by him under this Act and the month immediately preceding the month in"; and (c) by inserting after subsection (3) the following subsections: "(3 A ) If the insured person fails to complete a qualifying period under subsection (2) or (3) and the Employees' Social Security (Amendment) 9 Organization is satisfied that such failure is not due to any fault of the insured person or is due to the ignorance of the insured person, the Organization may consider the qualifying period to have been completed by an insured person if a medical board, established pursuant to section 32, to which the matter is referred by the Organization determines that the insured person's invalidity has commenced earlier than the date the notice of invalidity is received by the Organization in accordance with the regulations. (3B) Where the Organization has considered the qualifying period to have been completed by an insured person under subsection (3A), the date on which the insured person submits his notice of invalidity shall be deemed to be the date of commencement of his invalidity, (3c) Notwithstanding subsections (2) and (3), the Organization has the discretion to allow periods of credit to be taken into consideration for the purpose of determining the completion of the qualifying period of an insured person, and the months in the period of credit for which contribution is payable shall be included for the purpose of calculating the total number of months for the purpose of those subsections. (3D) The term "period of credit" in subsection (3c) means the period during which the insured person receives temporary disablement benefit and the employer does not pay any wages to the insured person.". Amendment of section 17 A 12. Section 17 A of the principal Act is amended in paragraph (2)(b) and subsection (3), by substituting for the words "of his first entry into insurance" the words "when contributions first become payable by him". 10 Amendment of section 20 Bill 13. Section 20 of the principal Act is amended— (a) in paragraph (l)(a), by substituting for the words "of his first entry into insurance" the words "when contributions first become payable by him under this Act"; and (b) in paragraph (2)(a), by substituting for the words "date on" the words "month in". Amendment of section 20 A 14. Paragraph 20 A (1)( a) of the principal Act is amended— (a) by substituting for the words "his widow during life or until remarriage," the words "the widow or the widower during life,"; (b) by substituting for the semicolon at the end of the paragraph a colon; and (c) by inserting below the existing provisions the following proviso to that paragraph: "Provided that if a widow or widower is entitled to more than one survivors' pension, she or he shall be paid only one pension, being the pension with the higher rate.". Deletion of section 20 B 15. The principal Act is amended by deleting section 20 B . Amendment of section 21 16. Subsection 21(2) of the principal Act is amended by substituting for the words "his first entry into insurance" the words "contributions first become payable by him under this Act". Employees' Social Security (Amendment) Amendment of section 26 17. Paragraph 26(l)(a) of the principal Act is amended— 11 (a) by substituting for the words "his widow during life or until remarriage and," the words "the widow or widower during life, and"; (b) by substituting for the semicolon at the end of the paragraph a colon; and (c) by inserting below the existing provisions the following proviso to that paragraph: "Provided that if a widow or widower is entitled to more than one dependant’s benefits, she or he shall be paid only one benefit, being the benefit with the higher rate.". Deletion of section 27 18. The principal Act is amended by deleting section 27. Amendment of section 29 19. Section 29 of the principal Act is amended— (a) in paragraph (3)(b), by substituting for the words "of his first entry into insurance" the words "when contributions first become payable by him"; and (b) in subsection (4), by substituting for the words "of his first entry into insurance" the words "when contributions first become payable by him". Amendment of section 30 20. Section 30 of the principal Act is amended in the proviso to the section by inserting after the words "by a medical board" the words "or Special Medical Board". 12 New section 32 A Bill 21. The principal Act is amended by inserting after section 32 the following section: "Determination of occupational diseases 32 A . (1) Any question whether an employment injury is caused by an occupational disease as specified in the Fifth Schedule may be determined by a medical board to be known as the Special Medical Board to be constituted in accordance with the regulations. (2) The Special Medical Board shall examine the disabled person and send a report in such form as may be specified by the Organization stating— (a) whether the disabled person is suffering from one or more of the diseases specified in that Schedule; (b) whether the relevant disease has resulted in permanent disablement; (c) whether the extent of loss of earning capacity can be assessed provisionally or finally; (d) the assessment of the proportion of loss of earning capacity, and in the case provisional assessment, the period for which such assessment shall hold good. (3) The Organization may refer any assessment which is provisional to the Special Medical Board for review not later than the end of the period taken into account by the provisional assessment. (4) Any decision of the Special Medical Board may be reviewed by it at any time. (5) The disabled person shall be informed in writing by the Organization of the decision of the Special Medical Board and the benefit, if any, to which the insured person shall be entitled. Employees' Social Security (Amendment) Amendment of section 34 22. Section 34 of the principal Act is amended— 13 (a) in subsection (1), by inserting after the words "this Act of a medical board" the words "(including the Special Medical Board)"; and (b) in subsection (3), by substituting for the word "five" the word "three". Amendment of section 49 23. Paragraph 49(2)(a) of the principal Act is amended by inserting after the words "this Act" the words ", if the amount earned from such employment is more than one third of his average wage before invalidity". Amendment of section 50 24. Section 50 of the principal Act is amended by inserting after subsection (1) the following subsection: "(1A) Where any person has received any benefit or payment under this Act when he is not lawfully entitled thereto, and subsequently becomes entitled to other benefits under this Act, the Organization shall recover the value of the benefit or the amount of such payment from that other benefit that he is entitled to.". New sections 57 B and 57c 25. Part III of the principal Act is amended by inserting after section 57 A the following sections: "Organization to be responsible for the recovery and collection of repayments of educational loans 57B. (1) The Organization shall be responsible for the recovery and collection of repayments of educational loans paid out to a dependant child under section 57 A . 14 Bill (2) An educational loan which is not repaid or which is in arrears shall be treated as a civil debt owed by a dependant child to the Organization and the Organization may avail itself of such means as are permitted under the law for the recovery of such debt. Appointment of collection agents 57c. The Organization, with the approval of the Minister, may appoint such number of agents for the purpose of recovery of educational loans paid out to a dependant child under section 57A.". Amendment of section 59N 26. Subsection 59N(1) of the principal Act is amended in the proviso to the subsection by substituting for the words 'Group "D"' the words "Grade 11". Amendment of section 59w 27. Subsection 59w(5) of the principal Act is amended by inserting after the words "The Promotion" the word "Appeal". Amendment of section 64 28. The principal Act is amended by substituting for section 64 the following section: "Fees and allowances 64. Members of the Board and the Investment Panel shall receive such fees, allowances and any other benefits as may from time to time be determined by the Minister.". Amendment of section 71 29. Paragraph 71(vii) of the principal Act is amended by inserting after the words "welfare of insured persons" the words "or dependants". Employees' Social Security (Amendment) Amendment of section 83 30. Section 83 of the principal Act is amended— 15 (a) by substituting for subsections (5) and (6) the following subsections: "(5) The two assessors shall represent employers and employees and shall be selected by the Chairman from the panel of persons appointed under subsection (6). (6) The Minister shall, after consultation with such organizations representing employers and employees respectively as he thinks fit, appoint a panel of such number of persons as he deems appropriate to serve as assessors."; and (b) by deleting subsections (7) and (8). Amendment of section 94 31. Section 94 of the principal Act is amended— (a) in paragraph (a), by substituting for the words "which under this Act he is liable to pay" the words "or any part thereof which is payable by him under this Act or fails to pay within the time prescribed by regulations any interest payable under section 14 A "; and (b) in paragraph (e), by substituting for the words "required by the regulations, or makes a false return" the words "or accident report required by the regulations, or makes a false return or report". Amendment of section 94 A 32. Section 94 A of the principal Act is amended— (a) in subsection (1), by inserting after the words "finding of guilt" the words ", and the certificate of the authorized officer shall be prima facie evidence of the amount due and payable"; 16 Bill (b) in subsection (2), by inserting after the words "[Act 593]" the words ", except that where the Court directs payment of the sum to be made by installments, the Court shall direct that the sum be paid in not more than six installments"; and (c) by inserting after subsection (2) the following subsection: "(3) Upon any person being found guilty of any offence under section 9A(e) pertaining to the submission of an accident report, the Court before which the person is found guilty shall order such person to submit the required accident report within the time to be determined by the Court.". Amendment of section 95 33. Section 95 of the principal Act is amended— (a) by substituting for subsection (1) the following subsection: "(1) No prosecution shall be instituted for an offence under this Act or any regulations made under this Act except by or with the consent in writing of the Public Prosecutor."; and (b) by deleting subsection (2). New section 95 A 34. Part VI of the principal Act is amended by inserting after section 95 the following section: "Compounding of offences 95A. (1) The Director General or any officer authorized in writing by the Director General may compound any offence committed by any person under this Act or the regulations made under this Act and prescribed by the Minister to be a compoundable offence by regulations made under this Act by making a written offer to the person suspected to have committed the offence to compound the offence upon payment Employees' Social Security (Amendment) 17 to the Director General of an amount of money not exceeding fifty percent of the amount of maximum fine for that offence within the time specified in the offer. (2) An offer under subsection (1) may be made at any time after the offence has been committed, but before any prosecution for it has been instituted, and if the amount specified in the offer is not paid within the time specified in the offer or within such extended period as the Director General may grant, prosecution for the offence may be instituted at any time after that against the person to whom the offer was made. (3) If an offence has been compounded under subsection (1), no prosecution shall be instituted in respect of the offence against the person to whom the offer to compound was made and any thing seized in connection with the offence may be released or forfeited by the Director General, subject to such terms and conditions as he thinks fit.". New section 103 A 35. Part VII of the principal Act is amended by inserting after section 103 the following section: "Disposal of documents after more than three years 103A. (1) The Director General may authorize any paperbased document belonging to the Organization to be copied onto an electronic medium by such means as to ensure that the exact image of that document is capable of being viewed, reproduced and copied. (2) Where a paper-based document has been copied in accordance with subsection (1), the Director General may authorize the disposal of the paper-based document after the expiry of a period of three years from the making of such electronic copy. (3) A copy of the document kept on an electronic medium in accordance with subsection (1) shall be admissible as evidence of any fact stated therein in accordance with section 90 A of the Evidence Act 1950 [Act 56].". 18 Amendment of section 105 Bill 36. Subsection 105(2) of the principal Act is amended— (a) in paragraph (xx)— (i) by inserting after the words "the returns" wherever they appear the words "and reports"; (ii) by inserting after the words "such returns," wherever they appear the words "reports,"; and (iii) by substituting for the words "such returns should" the words "such returns and reports should"; (b) by inserting after paragraph (xx) the following paragraph: "(xxa) offence which may be compounded and the procedure for compounding offences;"; and (c) by inserting after paragraph (xxi) the following paragraph: "(xxia) the constitution of medical boards, including the Special Medical Boards;". New section 108 A 37. Part VII of the principal Act is amended by inserting after section 108 the following section: "Joint and several liabilities of directors 108A. Where any sum of money by way of contributions together with any interest due thereon remain unpaid by a company, a firm or an association of persons, then, notwithstanding anything to the contrary in this Act or any other written law, the directors of such company including any person who was a director of such company during the period in which the contributions were payable, or a member of such firm including any person who was a member of the firm during the period in which the contributions were payable or the office-bearers of such association of persons, including any person who was an office-bearer of such association during the period in which the contributions were payable, as the case may be, shall together with the company, firm Employees' Social Security (Amendment) it 19 or association of persons be jointly and severally liable for the contributions together with interest due and payable thereon to the Organization.". Amendment of the First Schedule 38. Paragraph (1) of the First Schedule to the principal Act is amended by substituting for the word "two" wherever it appears the word "three". Amendment of the Third Schedule 39. The Third Schedule to the principal Act is amended— (a) in paragraph 2— (i) in item 24, by inserting after the words "RM1,900" the words "but not RM2,000"; and (ii) by inserting after item 24 the following items: Monthly Wages Employer's Employee's Contribution Contribution "25. When wages RM35.85 RM10.25 exceed RM2.000 but not RM2.100 26. When wages exceed RM2.100 but not RM2,200 27. When wages exceed RM2.200 but not RM2.300 28. When wages exceed RM2.300 but not RM2.400 RM37.65 RM10.75 Total RM46.10 RM48.40 RM39.35 RM11.25 RM50.60 RM41.15 RM11.75 RM52.90 20 Bill Monthly Wages Employee's Employee's Total Contribution Contribution 29. When wages exceed RM2,400 but not RM2,500 30. When wages exceed RM2,500 but not RM2,600 31. When wages exceed RM2,600 but not RM2,700 32. When wages exceed RM2,700 but not RM2,800 33. When wages exceed RM2,800 but not RM2,900 RM42.85 RM12.25 RM55.10 RM44.65 RM12.75 RM57.40 RM46.35 RM13.25 RM59.60 RM48.15 RM13.75 RM61.90 RM49.85 RM14.25 RM64.10 34. When wages RM51.65 exceed RM2,900 RM14.75 RM66.40"; (b) in paragraph 4— (i) in item 24, by inserting after the words "RM1,900" the words "but not RM2,000"; and (ii) by inserting after item 24 the following items: Monthly Wages "25. When wages exceed RM2.000 but not RM2,100 Employer's Contribution RM25.60 Employees' Social Security (Amendment) Monthly Wages 26. When wages exceed RM2,100 but not RM2,200 27. When wages exceed RM2,200 but not RM2,300 28. When wages exceed RM2,300 but not RM2,400 29. When wages exceed RM2,400 but not RM2,500 30. When wages exceed RM2,500 but not RM2,600 31. When wages exceed RM2,600 but not RM2,700 32. When wages exceed RM2,7OO but not RM2,800 33. When wages exceed RM2,800 but not RM2,900 34. When wages exceed RM2,900 21 Employer's Contribution RM26.90 RM28.10 RM29.40 RM30.60 RM31.90 RM33.10 RM34.40 RM35.60 RM36.90 Amendment of the Fourth Schedule 40. The Fourth Schedule to the principal Act is amended— (a) in paragraph 4— (i) in item 13, by substituting for the word "RM19.20" the words "RM19.10"; (ii) in item 24, by inserting after the words "RM1,900" the words "but not RM2,000"; and 22 Bill (iii) by inserting after item 24 the following items: Actual monthly wage of the month First Category Second Corresponding Category assumed monthly wage for the month RM25.60 RM2,050.00 '25. When wages exceed RM2,000 but not RM2,100 26. When wages exceed RM2,100 but not RM2,200 27. When wages exceed RM2,200 but not RM2,300 28. When wages exceed RM2,300 but not RM2,400 29. When wages exceed RM2,400 but not RM2,500 30. When wages exceed RM2,500 but not RM2,600 31. When wages exceed RM2,600 but not RM2,700 RM46.10 RM48.40 RM26.90 RM2,150.00 RM50.60 RM28.10 RM2,250.00 RM52.90 RM29.40 RM2,350.00 RM55.10 RM30.60 RM2,450.00 RM57.40 RM31.90 RM2,550.00 RM59.60 RM33.1O RM2,650.00 Employees' Social Security (Amendment) Actual monthly wage of the month First Category 23 Second Corresponding Category assumed monthly wage for the month RM34.40 RM2,75O.OO 32. When wages exceed RM2,7OO but not RM2,800 33. When wages exceed RM2,800 but not RM2,900 34. When wages exceed RM2,900 RM61.90 RM64.10 RM35.60 RM2,850.00 RM66.40 RM36.90 RM2,950.00"; (b) by deleting paragraph 6; (c) in paragraph 8 — (i) in subparagraph (i), by inserting after the word "widow" the words "or widower"; (ii) in the first proviso to the paragraph, by inserting after the word "widow" the words "or widower"; and (iii) in the second proviso to the paragraph, by substituting for the words "if the widow remarries or" the words "widower or if the widow or widower"; (d) in paragraph 9, by inserting after the word "widow" the words "or widower"; and (e) by deleting paragraph 10. 24 Bill Amendment of the Eighth Schedule 41. The Eighth Schedule to the principal Act is amended— (a) in paragraph 2, by substituting for the words "of his first entry into insurance" the words "when contributions first become payable by him"; (b) in paragraph 5 — (i) in subparagraph (a) and the first proviso to that paragraph, by inserting after the word "widow" wherever it appears the words "or widower"; (ii) in the second proviso to that paragraph, by substituting for the words "if the widow remarries or" the words "widower or if the widow or widower"; and (c) in paragraph 6, by inserting after the word "widow" the words "or widower"; and (d) by deleting paragraph 7. Amendment of the Tenth Schedule 42. The Tenth Schedule to the principal Act is amended— (a) in item 1 — (i) under the heading "Category of Officers", by substituting for the words 'Group "A"' the words "Grade 21"; and (ii) under the heading "Promotion Board", by substituting for the words "including the Director General," the words "including the Director General, and a representative from the Ministry responsible for human resources,"; (b) in item 2, under the heading "Category of Officers", by substituting for the words 'Groups "B" & "C" the words "Grade 12 to Grade 20"; and Employees' Social Security (Amendment) (c) in item 3 — 25 (i) under the heading "Category of Officers", by substituting for the words 'Group "D"' the words "Grade 11 and below"; and (ii) under the heading "Promotion Board", by substituting for the words 'Group "A"' the words "Grade 21". EXPLANATORY STATEMENT the Bill seeks to amend the Social Security Act 1969 ("Act 4"). 2. Clause 1 of the Bill contains the short title and the power of the Minister to appoint the commencement date of the proposed Act. 3. Clause 2 of the Bill seeks to amend subsection 2(3) of Act 4 to include a widower in the definition of "dependant". 4. Clause 3 of the Bill seeks to amend section 6 of Act 4 to deal with the situation where the aggregate of the insured person's assumed monthly wages exceed the prescribed maximum assumed monthly wages. 5. Clause 4 of the Bill seeks to amend section 10 of Act 4 to include records on electronic medium in the ambit of the Minister's power to make regulations dealing with the method of payment of contributions. 6. Clause 6 of the Bill seeks to amend Act 4 by introducing new sections 12A, 12B and 12c into the Act. The new sections deal with the powers of Inspectors to conduct investigations and to examine persons, as well as making it an offence for a person to obstruct an Inspector in the exercise of such powers. 7. Clause 7 of the Bill seeks to amend section 13 of Act 4 to empower an Inspector to assess contributions due from an employer in cases where the employer has failed to submit the particulars, etc., of his employees. 8. Clause 8 of the Bill seeks to amend Act 4 by introducing a new section 13A which provides for the power of the Director General to obtain information from any person to ascertain if that person is liable to pay contribution under the Act. It also contains provisions allowing the Director General to apply for search warrants from a Magistrate. 9. Clause 10 of the Bill seeks to amend Act 4 by introducing a new section 14A into the Act to impose an interest on contributions which are not paid in the stipulated period. 26 Bill 10. Clause 11 of the Bill seeks to amend section 17 of Act 4 to enable an insured person to fulfill the qualification for the invalidity pension where the invalidity had occurred earlier but the invalidity notice has not been submitted to the Social Security Organization due to ignorance or other factors which are not the insured person's fault. This amendment would also take into account the months in which contributions in respect of the employee have not being paid because the employee receives temporary disablement benefit due to employment injury and the employer is not paying his salary. 11. Clause 14 of the Bill seeks to amend paragraph 20A(1)(a) of Act 4 to enable survivors' pension to be paid to a widow or widower for the duration of her or his life. However, the widow or widower will only be paid one survivors' pension, being the pension at a higher rate, should she or he be entitled to more than one such pension. 12. Clause 21 of the Bill seeks to amend Act 4 by introducing new section 32A into the Act. The new section 32A provides for a Special Medical Board to examine insured persons who suffer occupational diseases listed under the Fifth Schedule to the Act. 13. Clause 22 of the Bill seeks to amend section 34 of Act 4 to reduce the waiting period for a revision of the decision made by a medical board or an appellate medical board from five years to three years. 14. Clause 23 of the Bill seeks to amend section 49 of Act 4 by introducing an additional proviso to that section. The purpose of the additional proviso is to encourage insured persons to work actively and thus contribute to the country's economic growth. At the present, invalidity pension is suspended if and as long as the invalid pensioner is employed and due to the new employment he is again insured under the Act. With this amendment, he will continue to get the pension as long as he does not earn more than one third of his average wage before his invalidity. 15. Clause 24 of the Bill seeks to amend section 50 of Act 4 by introducing a new subsection (1A) into that section to enable the Organization to recover any excess benefits or incorrect amount of benefits paid to insured persons from other benefits to which the insured person become entitled subsequently. 16. Clause 25 of the Bill seeks to amend Act 4 by introducing new sections 57B and 57c into the Act. The new section 57B places on the Organization the responsibility for the recovery and collections of repayments of educational loans. Such loans are treated as civil debts. The new section 57c seeks to empower the Organization to appoint agents for the collection of the loans. 17. Clause 30 of the Bill seeks to amend subsections 83(5) and (6) of Act 4 to enable a panel of persons to be appointed by the Minister from which assessors will be selected for the purpose of representing the employers and employees on the Social Security Appeal Board. These amendments will make it easier for such Board to be constituted. Employees' Social Security (Amendment) 27 18. Clause 31 of the Bill seeks to amend section 94 of Act 4 to enable the Organization to prosecute an employer who fails to pay part of any contribution or interest on the contribution payable under the Act. 19. Clause 32 of the Bill seeks to amend subsections 94A(2) of Act 4 to provide that a Magistrate could only allow six installments for the payment of arrears of contribution or interest on contributions. This clause also seeks to introduce a new subsection (3) into section 94A of the Act to enable the Court to order the employer who is found guilty by the Court to submit the required accident report to the Organization. 20. Clause 33 of the Bill seeks to amend section 95 of Act 4 so that the prosecution for an offence under the Act can only be instituted by or with the consent of the Public Prosecutor. 21. Clause 34 of the Bill seeks to amend Act 4 by introducing a new section 95A into the Act to empower the Director General or any officer authorized by him in writing to compound any offence committed under the regulations made under the Act. 22. Clause 35 of the Bill seeks to amend Act 4 by introducing a new section 103A into the Act to empower the Director General to dispose of the Organization's documents after the documents have been copied onto an electronic medium. This is proposed in order to reduce storage space and costs. However, the Director General cannot exercise that power before the expiry of three years from such copying. The new section 103A also provides that such electronic copies would be admissible as evidence. 23. Clause 37 of the Bill seeks to amend Act 4 by introducing a new section 108 into the Act. The new section imposes joint and several liabilities on a director of a company or partner of a firm or office-bearer of an association of persons if the company, firm or association fails to pay contribution or interest on contributions payable by it under the Act as an employer. This would enable the Organization to recover the arrears of contribution and interest thereon if the company, firm or association is dissolved. 24. Clause 38 of the Bill seeks to amend the First Schedule to Act 4. At present a person who earns more than two thousand ringgit a month in an industry to which the Act applies is not treated as an employee for the purpose of the Act. The amendment seeks to increase that limit to three thousand ringgit so that more employees will be able to enjoy the benefit under the Act. 25. Other amendments not specifically referred to in this Statement are minor or consequential in nature. FINANCIAL IMPLICATIONS This Bill will not involve the Government in any extra financial expenditure. [PN(U2)2358]