Early Retirement Benefit

If you have at least 5 years of contributory service with the Fund and would like to separate before reaching your normal retirement age, you can opt for an early retirement benefit. If you separate at an age prior to reaching normal retirement age, a reduction factor for life is applied to your benefit. The extent of the reduction depends on your age at the time of separation and the length of your contributory service. It is possible to commute up to one third of the early retirement benefit into a lump sum. The balance would be payable as a reduced monthly pension benefit. The higher the lump sum, the lower your monthly benefit payable for life. The early retirement benefit carries both potential survivor’s benefits and child benefit. However, payment of child benefit will commence only when you reach your Normal Retirement Age, and only for those children who will be under age 21 at that time.

If you entered or re-entered the Fund before 01 January 2014 an early retirement benefit shall be payable to you as of the age of 55.

If you entered or re-entered the Fund on or after 01 January 2014 an early retirement benefit shall be payable to you as of the age of 58.

For more information check out our Benefits Comparison Page. 

The Pension Fund regulates which pension benefit you are entitled to and at what rate at the time of separation from service; your benefit option/s and amount depend on your length of service and age at the time of separation. For more information, check out our Benefit Comparison Page.

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Withdrawal Settlement (Article 31)

Opting for a withdrawal statement means your benefit will be received in a one-time payment consisting of the reimbursement of your contributions plus 3.25% interest (increased by 10% for each year after your first five years with the Fund, up to a maximum of 100%). Please note that if you elect a withdrawal statement, no other benefit will be paid to you or your survivors. Should you receive a withdrawal settlement and re-join the Fund in the future you will be entitled to restore the period for which the withdrawal settlement was paid to you.

Deferred Retirement Benefit (Article 30)

Opting for deferred retirement means your benefit will become payable at your normal retirement age or, at your request, anytime between the date at which you become eligible for an early retirement benefit and your normal retirement age. Should you elect to commence your deferred retirement benefit before your normal age of retirement, an according reduction factor will be applied for life to your entitlement. For participants who separated before 31 December 1989, no adjustment shall be applied to their benefit prior to reaching the age of 50. For participants separating from service on or after 31 December 1989, no adjustment shall be applied to their benefit prior to them reaching the age of 55. Such benefit carries potential surviving spouse’s benefit(s) but does not carry eligibility to a child benefit. Furthermore, if you elected a deferred retirement benefit and re-join the Fund in the future you will not be entitled to restore your prior contributory service, and instead, you will have a new and separate pension account for the new period of contributory service.

Early Retirement (Article 29)

If you would like to separate before reaching your normal retirement age, opting for early retirement benefits means your benefit will become payable once you have at least reached your early retirement age. If you chose this option, a reduction factor according to your age before NRA will be applied for life to your entitlement. Furthermore, you will be eligible to commute up to one-third of the benefit into a lump sum. The benefit carries both potential survivor’s benefits and child benefit. However, payment of child benefit will commence only when you reach your normal retirement age, and only for those children who will be under age 21 at that time. Unless you request payment earlier than your normal retirement age, the Fund will contact you prior to your normal retirement age to request that you submit a payment instructions form (PI) and identification document. For more information on Deferred Retirement Benefit, check out our comprehensive Separation page.

Full Retirement Benefit (Article 28)

You can opt for an un-reduced retirement benefit upon reaching your normal retirement age. You will be eligible to commute up to one-third of the benefit into a lump sum. The benefit carries both potential survivor’s benefits and child benefit.

Delaying election of benefit or payout (Article 32)

If you have less than 5 years of contributory service with the Fund you can delay your payout of a withdrawal settlement for a period of up to 36 months. If you have 5 or more years of contributory service with the Fund you can delay your choice of benefit (a withdrawal settlement or a deferred retirement benefit) for a period of up to 36 months. Should you re-join the Fund within the 36-month deferment period from your date of separation from service, your participation will be deemed to have been continuous (provided that no benefit has been paid to you). The period in between your date of separation and of re-entry into Fund participation will be considered a period of break-in-service, which cannot be made pensionable. However, if you do not re-join the Fund, you must submit your benefit election and payment instructions on the according form to the Fund at the latest by the end of the 36 months deferment period. If you have less than 5 years of contributory service and fail to submit your PIs within 36 months your this may lead to eventual forfeiture of your benefit, if after another 24 months no claim has been brought forth. If you have 5 or more years of contributory service with the Fund and fail to submit your benefit election and payment instructions to the Fund within the 36-month deferment period, the Fund will automatically deem you to have elected a deferred retirement benefit.