Government Employees Pension Law, 1996Schedule 1 : Rules of the Government Employees Pension FundAnnexure : Pension Benefits in terms of Severance PackagePart A : Pension Benefits in terms of PSCBC Resolution 3 of 1999 |
The following pension benefits are payable:
| (i) | Members of Government pension funds who have attained the age of 55 years and who have completed at least 10 years pensionable service: A gratuity and an annuity determined in terms of the formula that applies at the member's pension age. The benefits will not be scaled down, nor will any additional period of pensionable service be added. |
| (ii) | All members who have not yet attained the age of 50 years, as well as those who have attained age 50 but have less than 10 years' pensionable service: A gratuity equal to the greater of: |
| • | the gratuity benefit referred to in rule 14.4.1(a); or |
| • | the cash resignation benefit payable in terms of the formula set out below: |
GRATUITY = [(R1 x N1) + (8% x N3) + (R2 x N2)] x Z x D x INTFAC x SEVFAC,
where—
| R1 = | member's actual rate of contribution as at 30/04/1996 (6% for women and 8% for men) |
| N1 = | member's actual (unadjusted) period of pensionable service as at 30/04/1996 |
| R2 = | the rate of 7,5 % |
| N2 = | member's period of pensionable service rendered subsequent to 1/05/1996 onwards |
| N3 = | period of purchased service pre 1 May 1996 |
| Z = | average annual pensionable salary of member during his/her last 36 months of pensionable service. Should the member have less than 36 months' pensionable service, it will be the average annual pensionable salary during his/her full period of pensionable service |
| D = | the factor defined in rule 1. |
| INTFAC = | 100%, plus 2,5% for each full year of the member's pensionable service |
| SEVFAC = | 100%, plus 10% for each full year of pensionable service up to 20 years, 15 % for each full year of pensionable service between 20 and 30 years and 20% for each full year of pensionable service in excess of 30 years. |
[Paragraph (ii) substituted by Notice No. 499 of 11 April 1997]
| (iii) | Members who are between the ages of 50 and 55 years, and who have completed at least 10 years' pensionable service: A choice of either of the following benefits: |
| • | A gratuity and an annuity calculated as in par (i) above: Provided that these benefits are reduced by 0,3% for each month between the member's age and the age of 55 years; or |
| • | a gratuity calculated as in par. (ii) above. |
| • | (Note: Reference to "pensionable service" above is also regarded as reference to a "pensionable period".) |
[Part A substituted by Notice No. 423 of 31 March 2004]