Section 13 of The Pension Fund Regulatory and Development Authority Act, 2013
On and from the date of establishment of the Pension Fund Regulatory and Development Authority,--
- (a)all the assets and liabilities of the Interim Pension Fund Regulatory and Development Authority shall stand transferred to, and vested in, the Authority. Explanation.--The assets of the Interim Pension Fund Regulatory and Development Authority shall be deemed to include all rights and powers, all properties, whether movable or immovable, including, in particular, cash balances, deposits and all other interests and rights in, or arising out of, such properties as may be in the possession of the Interim Pension Fund Regulatory and Development Authority and all books of account and other documents relating to the same; and liabilities shall be deemed to include all debts, liabilities and obligations of whatever kind;
- (b)without prejudice to the provisions of clause (a), all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Interim Pension Fund Regulatory and Development Authority immediately before that day, for or in connection with the purpose of the said Regulatory Authority, shall be deemed to have been incurred, entered into or engaged to be done by, with or for, the Authority;
- (c)all sums of money due to the Interim Pension Fund Regulatory and Development Authority immediately before that day shall be deemed to be due to the Authority; and
- (d)all suits and other legal proceedings instituted or which could have been instituted by or against the Interim Pension Fund Regulatory and Development Authority immediately before that day may be continued or may be instituted by or against the Authority.
Summary
- When the new Pension Fund Regulatory and Development Authority is established, it automatically takes over everything from the older Interim Authority.
- All properties, cash balances, deposits, and account books belonging to the Interim Authority become the property of the new Authority.
- Any debts or legal obligations the Interim Authority had are transferred to the new Authority.
- All contracts made by the Interim Authority remain valid and are treated as if the new Authority made them.
- Any ongoing lawsuits involving the Interim Authority will continue with the new Authority taking its place.
Practical examples
FAQ
1. Does the new Authority have to sign new contracts to replace the Interim Authority's contracts?
No, all contracts entered into by the Interim Authority are legally treated as if they were made by the new Authority.
2. What happens to the money in the Interim Authority's bank accounts?
All cash balances and deposits are automatically transferred to and owned by the new Authority.
3. If someone owed money to the Interim Authority, do they still have to pay?
Yes, all sums of money due to the Interim Authority become due to the new Authority.
Test yourself
Q1.Under Section 13 of The Pension Fund Regulatory and Development Authority Act, 2013, what happens to lawsuits that were ongoing against the Interim Authority when the new Authority is established?
Q2.Under Section 13 of The Pension Fund Regulatory and Development Authority Act, 2013, which of the following is specifically included in the definition of the assets being transferred?
Q3.Under Section 13 of The Pension Fund Regulatory and Development Authority Act, 2013, how does the Act handle debts incurred by the Interim Authority?
Q4.Under Section 13 of The Pension Fund Regulatory and Development Authority Act, 2013, if a private firm was engaged to do work for the Interim Authority before the transition date, what is the status of that engagement?