Government Employees Pension Law, 1996Schedule 1 : Rules of the Government Employees Pension Fund14. Benefits payable to members14.4 Benefits on resignation or discharge |
| 14.4.1 | A member who resigns from his or her employer's service or is discharged from his or her employer's service because of misconduct or ill-health occasioned by his or her own doing or for a reason not specifically mentioned in the rules and who is not entitled to receive benefits provided elsewhere in the rules, is entitled, on the written choice of the member, to— |
| (a) | a gratuity calculated at 7,5% of his or her final salary multiplied with the period of his or her pensionable service, and increased by ten percentage points for each full year of pensionable service between 5 and 15 years; or |
| (b) | a transfer benefit to an approved retirement fund equal to the aggregate of— |
| (i) | the amount referred to in paragraph (a), which amount shall become an entitlement of the member on the condition that he or she deposits the amount into the approved retirement fund immediately upon becoming entitled thereto; and |
| (ii) | the difference between the member's actual interest in the Fund and the amount referred to in paragraph (a), if any. |
Interest shall be added to the transfer benefit to account for any delay in payment thereof to the approved retirement fund. Such transfer shall be made subject to the rules of the approved retirement fund specifying that, with reference to the transfer benefit, any subsequent lump sum benefit payable by that fund or any successor fund to the member and/or his beneficiaries shall be limited to one third of the said transfer benefit, with interest. The balance of the member's transfer benefit with interest, after deduction of any lump sum payment referred to above, shall be applied for the purchase of an annuity, albeit immediately or upon the member's ultimate retirement.
| 14.4.2 | The actuarial interest of a member who has— |
| (a) | not attained the age of 55 years, shall be calculated in accordance with the following formula: Provided that the actuarial interest shall not be less than the amount of the benefit described in rule 14.4.1(a): |
N(adj) X FS X F(Z) X [1 + (0,04 X (60 - Z))]
Where—
N(adj) is the member's period of pensionable service, taking into account all adjustments thereto in terms of the rules, as at the date of termination of service;
FS is the member's final salary;
F(Z) is a factor determined by the Board acting on the advice of the actuary, and after consultation with the Minister and the employee organisations;
Z is the age at which the member attains his or her pension retirement date;
| (b) | attained the age of 55 years, shall be calculated in accordance with the following formula: Provided that the actuarial interest shall not be less than the amount of the benefit described in rule 14.4.1(a): |
G + [A X A(X)]
Where—
G is the amount of the gratuity the member would have received in terms of the rules had he retired on that date. For this purpose, a member with less than 10 years pensionable service, will be deemed to qualify for the same benefit as a member with 10 years or more service;
A is the amount of the annuity the member would have received in terms of the rules. For this purpose, a member with less than 10 years pensionable service, will be deemed to qualify for the same benefit as a member with 10 years or more service;
A(X) is a factor determined by the Board acting on the advice of the actuary, and after consultation with the Minister and the employee organisations.
| 14.4.3 | Members who became entitled to resignation benefits on or after 1 July 1996, may exercise a written choice before 31 March 1998 to receive the gratuity benefit referred to in rule 14.4.1(a). |
[Rule 14.4 substituted by Notice No. 499 of 11 April 1997 (as corrected by Notice No. 31 of 2 May 1997)]