Pension

 

  • A monthly pension is payable to a beneficiary on the death of an associate irrespective of whether the associate dies in service or after leaving the service.
  • Whenever an associate dies, a pension is paid to his/her beneficiary(widow/widower/orphans).
  • A female orphan is paid an orphan pension up to the age of 21. Once she gets married, the pension is discontinued.
  • A male orphan is paid an orphan pension up to the age of 18, but may be extended up to the age of 21 provided written evidence is produced that he is receiving full-time education.
  • The quantum of the monthly pension is determined as follows: –
    • The last salary of the associate.
    • The length of contributory month of service
    • The rate of pension to be used.

 

COMPUTATION OF PENSION

  • For employees in post at 30 June 2008, the pension payable to the spouse and children of a deceased associate will be strictly based on one of the following formulae: –
  • 1/2 x Notional unreduced Pension (payable to spouse + at least one orphan)
  • 1/3 x Notional unreduced Pension (payable to spouse if there is no orphan)
  • 1/2 x Notional unreduced Pension (in respect of 2 or more children only. (There is no spouse)
  • 1/4 x Notional unreduced Pension (if there is only one child and no spouse)

Notional Unreduced Pension is arrived at as follows: –

*(Number of months Service /600 months) x    Last drawn Salary

 

Subject to a minimum of 240 months if employee has joined service before 35 and limited to a maximum of 400 months.

  • There is also a proviso for the payment of a minimum pension which shall be fixed by the Minister on the recommendation of the Board.
  • In respect of employees who join the scheme after 30 June 2008, the notional unreduced pension shall be as follows: –

*(Number of months service /690 months) x     Last drawn Salary
* with a maximum of 460 months.

 

CHILDREN BORN OUTSIDE WEDLOCK

The law has been amended since 1998 to enable the payment of a pension not only to a legitimate child but also to a child born outside wedlock and duly acknowledged by the associate or whose filiation has been pronounced by a Court of law.  A legally adopted child will also qualify for such pension.

 

AGE LIMIT FOR PAYMENT OF PENSION

 There is no age-limit in respect of the payment of pension to the spouse of a deceased associate.  Pension will be paid until the pensioner passes away, unless he/she remarries, in which case the payment of pension is discontinued.  It should be pointed out that the law has been amended since 2001 to provide for the payment of a full month’s pension to the relatives of a pensioner in the month he/she dies together with another full-month gratuity.

 

PAYMENT OF BONUS

An additional one-month bonus is paid every December to all pensioners.

 

MINIMUM RATES OF PENSION PAYABLE

Effective January 2021 are as follows;

  • Widow/Widower pension + orphans’ pension – Rs5,661.63
  • Widow/Widower pension only – Rs5,490
  • Orphans pension (children) – Rs5,661.63
  • Orphan pension (one child) – Rs5,394.56

  • The minimum rate of pension is adjusted in January each year whenever a compensation is approved by Government.
  • The following documents need to be produced (original + photocopy) when making a claim for a pension: –
    • Birth Certificate and Identity Card of deceased associate
    • Birth Certificate and Identity Card of spouse (if applicable)
    • Marriage Certificate
    • Birth Certificate of minor Children (if applicable)
    • Death Certificate of deceased associate.
    • Affidavit
    • Evidence of Divorce (if applicable)
    • Bank Pass Book.
    • Letter of Retirement (if applicable)
    • Certificate of cause of Death.

 

INTERPRETATION AS PER SBFPFUND ACT

  • Normal Retirement Age
    As adjusted by Pay Research Bureau Report 2008.
  • Effective Date of Refund
    The date on which a refund can be claimed and paid.
  • Marriage
    Means Civil marriage which has taken place when an associate was still in post i.e. in service.
  • Employee
    Include both Female and Male.
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