Retirement Benefits

1. Normal Retirement

What is my normal retirement age?

You must retire when you reach your prescribed retirement age as the applicable legislation defines.
The prescribed retirement ages applicable to the different services are as follows:
• Disciplined Service – 55
• Local Government – 60
• Public Service – 60
• Teaching Service – 60

2. Early Retirement

You may retire within 10 years from your prescribed retirement age.
You require Government’s consent to qualify for early retirement.

3. ill Health Retirement

If you become too sick or disabled to continue working, but do not qualify for a disability benefit, the trustees may agree to your ill-health retirement any time before your prescribed retirement age.

Amount of benefit

On your retirement, you will receive a benefit equal to your Fund Credit.

What is Fund Credit?

It is the total value of your benefit in the Fund. It is made up of the following:

a) The total contributions paid by yourself and the government towards your  retirement benefit;

b) Any amount transferred from a previous fund on behalf of yourself (if applicable); plus

c) Investment returns earned on your benefit


You will receive your Past Service Liability Reserve.

Note: Deferred Pensioners will receive their Fund Value which consist of the value of their share as of the date they resigned from the Fund plus the investment returns earned over the period to the date of retirement.

Example 1

Lets say you join the fund at age of 30 and retire at 60 , and throughout your membership period in the fund your salary is M3000.00 . Based on your 5% contribution you paid M54 000.00 into the fund  while you were a member. This money was invested and, for example,  earned an extra M26 000.00 .Your Member Portion would therefore be equal M54000.00 + M26 000.00 = M80 000.00

Example 2

Based on the Employer`s  5%  contribution rate , your employer will also have paid M80 000.00 into the fund on your behalf throughout the period of membership. 

Your total retirement benefit , or Fund Credit , is therefore equal to :

  • Member Portion M80 000.00
  • Employer Portion M80 000.00
  • Fund Credit M160 000.00

If you decide to take 25% of your benefit as cash, you will receive a lump sum of M40 000.00, less any tax applicable. The remaining M140 000.00 of your benefit will be used to provide a monthly pension.

Options At Retirement

What are my options at retirement? can I take part of my pension in  cash when I retire ?

You will have options to purchase an annuity (pension) with your full fund value , or you may decide to take a portion as a lumpsum (maximum 50% may be taken as a single amount) , and the balance will then be utilized  to purchase an annuity.

Income Tax

The benefits will be subject to tax as enforced by the  Income Tax Act of 1993 as amended.


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