How to calculate a Withdrawal Settlement under Article 31
1
What is a Withdrawal Settlement under Article 31?
A withdrawal settlement is a one-time payment of a lump-sum that relinquishes all rights to a retirement benefit from the UNJSPF.
The option to elect a withdrawal settlement under Article 31 shall be available only to participants who separate prior to reaching normal retirement age.
If a participant separates at normal retirement age, the option to elect a withdrawal settlement shall no longer be available.
2
How is my Withdrawal Settlement calculated?
A participant separates from service before reaching normal retirement age with exactly 7 years of contributory service. His total contributions amounted to US$ 33,800.00 with compound interest in the amount of US$ 3,229.00.
Therefore:
Contributions = US$ 33,800.00
Interest = US$ 3,229.00
Total Cont. and Interest = US$ 37,029.00
Increased by 20 % since participant has 2 years of contributory service over 5 years totaling 7 years of contributory service so that;
US$ 37,029.00 x 20% = US$ 7,405.80
Withdrawal Settlement = US$ 44,434.80
