Q1: What happens if a member resigns?
A: A member can resign if he or she has completed less than 10 years of pensionable service. The member will receive an amount equal to his or her own contributions to the Fund, together with interest on his or her own contributions at a rate determined by the Fund.
Q2: What is a deferred retirement and how is it calculated?
A: A deferred retirement is postponing retirement to between early and normal retirement. It is applicable to a member who is below the age of 45 years and who has completed 10 or more years of pensionable service. From age 45 years up until 60 years, a member can apply for that benefit payment and a penalty of 0.333% will be applied for every month between the claim date until 60 years. The retirement benefit is calculated as follows:
Had Thandi decided to retire at 42 years, with a service of 14 years, she would not have qualified for early retirement but would have been forced to defer until she is 45 years old. At 45 years, her benefits would be computed as follows:
Gratuity
| 2% x E120 000 x 14 x 15 x 25% | = E126 000 |
| Less E126 000 x 15 x 12 x 0.333% | = E75 524.40 *penalty |
| = E50 475.60 |
Monthly Pension
| 2% x E120 000 x 14 x 75% | = E25 200 per annum |
| Less E25 200 x 15 x 12 x 0.333% | = E15 104.88 *penalty |
| = E10 095.12 per annum | |
| = E841.26 per month |