PARLIAMENT Deputy Defence Minister Mohd Johari Baharom today tabled Tabung Angkatan Tentera (Amendment) Act 1973 (Armed Forces Pension Fund Board), at the Dewan Rakyat seeking to remove Bank Negara Malaysia governor or deputy governor from its investment panel.

Under the amended Act, the investment panel will be reduced to five members – the chairman, who is appointed by the minister on the advice of the board; the chief of the armed forces staff; the deputy secretary-general to the treasurer; and two members with business or financial experience, also appointed by the minister.

Another amendment sought to impose a compulsory contribution – 10 percent of the monthly salary– from the Tabung officers.

The bill was scheduled to be tabled for second and third reading during the parliamentary session, which ends on Dec 3.

A new section is also introduced to allow the board, with the approval of the minister, to regulate the terms and conditions for withdrawals from the fund.

With the amendment, the board needs to get the approval of both finance minister and defence minister before it can make any borrowing. Currently, only the finance minister's gives the green light.