Contribution

An employee ceases to contribute to the Fund on the occurrence of any of the following events: –

    1. Reaching 65 years of age
    2. Resignation from service
    3. Dismissal from service
    4. Retirement from service
    5. Leaving service for any reason
    6. If he was in post as at 30 June 2008 and has opted to cease contributing to the Fund on reaching 60
  • The Act requires that employees have to
    contribute to the Fund for the period on leave without pay.
  • If an employee fails to settle the outstanding
    contribution for the period on leave without pay, he/she will forfeit the
    right to have such leave being reckoned as contributory period.

 

CONTRIBUTION REFUND

There is an immediate refund, provided: –

    1. an associate was in post prior to August 1988 and has signed an option form to that effect.
    2. On reaching normal retirement age or anytime thereafter an associate has no potentially eligible widow/er or minor children (child is overaged or married).

A refund of Contribution is also made in the following circumstances (also applicable for Premature Retirement).

    1. If at the time of ceasing to be an officer or employee and the latter has never contracted a civil marriage and has not legally adopted a child or does not have a natural child.
    2. Divorcees having no underaged children.
    3. Upon withdrawal of an associate that is
      resignation, post declared vacant and dismissal.

 

NO REFUND OF CONTRIBUTION

  • Associate in service post August 1988 are not eligible for a refund of contribution on attaining the Normal Retirement Age/effective date of Retirement (as per PRB report 2008).

 

REFUND WITH INTEREST

A refund with interest at 4% per annum will depend mainly on the effective date of retirement of an associate.

If the effective date of retirement falls prior to 1st July 2008 there is no refund with interest; but if the effective date of retirement falls after 1st July 2008, compound interest is paid.

 

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