“While the Fund is conducting its business, it happens that some members do not claim their benefits leaving them as unclaimed benefits”
The Public Service Pensions Fund was established in 1993 for the management and administration of pension for government employees. The Fund’s membership consists of active members, pensioners and dependants which are spouses and minor children.
The Fund Scheme is run as a Defined Benefit Scheme which is one in which the employer carries the risk, a member’s benefit on retirement is guaranteed gratuity and monthly annuity based on a set formula rather than depending on investment returns. The contributory rates are predetermined, financed through employer and employee contributions of 15% and 5% of basic monthly salary respectively. There is continual monthly annuity for legal spouse (s) and minor children upon death of a member.
The Fund offers the following benefits which are dependant on the nature of exit from government employment; Normal Retirement, Early Retirement, Forced Medical Retirement, Abolishment of Office, Disability, Resignation, Deferred Retirement, Dismissal and Death Benefit.
The Fund pays out these benefits according to the qualifications of each member mostly based on years of service except for the Death Benefit since death is an unforeseen natural occurrence. While the Fund is conducting its business, it happens that some members do not claim their benefits leaving them as unclaimed benefits. Since the benefits entail money, they then equate to Audit queries for the Fund as it is money that has not been paid to the rightful recipients.
The unclaimed benefits are caused by active members leaving the government employment base without the mandatory Authority. The Authority is key since it permits the Fund to pay out the member’s benefit/process the member’s benefit. In most cases, the member goes awol and the employer, being government, cannot trace the member thus making it even more difficult for the Fund to find the member. This is a thorny issue for the Fund which is why it is making endless efforts in trying to educate active members on the importance of acquiring the mandatory Authority before exiting the government employment base.
The Fund urges active members to liaise with their respective Human Resources Office when planning to leave government. This will assist them in receiving their benefit on time as all protocols would have been observed and necessary documents submitted.