Government Employees Pension Law, 1996 > Schedule 1 : Rules of the Government Employees Pension Fund > 14. Benefits payable to members > 14.4 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)

7.5 percent of his or her final salary multiplied with the period of his or her vested and savings service and increased by ten percentage points for each full year of total pensionable service between 5 and 15 years: and the member's vested actuarial interest and savings actuarial interest in the Fund.

[Rule 14(14.4.1)(a) substituted by section 15 of Notice No. 5191, GG51202, dated 10 September 2024]

Interest shall be added to the vested and savings components balances to be transferred to account for any delay in payment thereof to the approved retirement fund.

(b)

In addition to the benefit payable under rule 14.4.1(a), the following benefits with effect from the vested date, subject to rule 16.5 and the Income Tax Act, an annuity determined as at date of termination of employment calculated at 1.5 times 1/58.65 of his or her final salary multiplied by the period of his or her retirement service (or 1.5 times 1/60.71 of his or her final salary multiplied by the period of his or her retirement service for Services members).

[Rule 14(14.4.1)(b) substituted by section 15 of Notice No. 5191, GG51202, dated 10 September 2024]

14.4.2

The actuarial interest, per component, for a member who has—

[Words preceding Rule 14.4.2(a) substituted by section 16 of Notice No. 5191, GG51202, dated 10 September 2024]

(a)	not attained the age of 55 years, shall be calculated in accordance with the following formula:

N(adj) x FS x F(z) x [1+(0.04 x (60-Z)] where—

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;

Notwithstanding the above, the actuarial interest for each component will be determined as follows

Vested actuarial interest shall be calculated according to the following formula

N(v) x FS x F(z) x [1+(0.04 x(60-Z)] where N(v) is the vested service;

Savings actuarial interest shall be calculated according to the following formula

N(s) x FS x F(z) x [1+(0.04 x(60-Z)] where N(s) is the savings service;

Retirement actuarial interest shall be calculated according to the following formula

N(r) x FS x F(z) x [1+(0.04 x(60-Z)] where N(r) is the retirement service;

provided that the total of the actuarial interest calculated with reference to vested service, savings service and retirement service shall not be less than the sum of the amount of the benefit described in rule 14.4.1(a) and the capitalised value of the amount of the benefits described in rule 14.4.1(b):

[Rule 14(14.4.2)(a) substituted by section 17 of Notice No. 5191, GG51202, dated 10 September 2024]

(b)	attained the age of 55 years, shall be calculated in accordance with the following general formula:

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 of total pensionable service, will be deemed to qualify for the same benefit as a member with 10 years or more of 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 of total pensionable service, will be deemed to qualify for the same benefit as a member with 10 years or more of service:

A(X)	is a factor determined by the Boar acting on the advice of the actuary and after consultation with the Minister and the employee organisations.

Not withstanding the above, the actuarial interest for each component will be determined as follows

Vested actuarial interest shall be calculated according to the following formula

G(v) + [A(v) x A(X)]

Where—

G(v)

is the amount of a gratuity, based on vested service, the member would have received in terms of rules 14.2.1 (a) had they retired on that date. For this purpose, a member with less than 10 years of total pensionable service, will be deemed to qualify for the same benefit as a member with 10 years or more of service:

A(v)

is the amount of the annuity the member would have received, based on vested service, in terms of rule 14.2.1(c). For this purpose, a member with less than 10 years of total pensionable service, will be deemed to qualify for the same benefit as a member with 10 years or more of total pensionable 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.

Savings actuarial interest shall be

G(s)

Where—

G(s)

is the amount of a gratuity, based on savings service, the member would have received in terms of rule 14.2.1 (b) had he retired on that date. For this purpose, a member with less than 10 years of total pensionable service, will be deemed to qualify for the same benefit as a member with 10 years or more of service:

Retirement actuarial interest shall be calculated according to the following formula

A(r) x A(X)

Where—

A(r)

is the amount of the annuity the member would have received, based on retirement service, in terms of rule 14.2.1(d) and (e). For this purpose, a member with less than 10 years of total pensionable service, will be deemed to qualify for the same benefit as a member with 10 years or more of total pensionable 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.

[Rule 14(14.4.2)(b) substituted by section 18 of Notice No. 5191, GG51202, dated 10 September 2024]

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)]