Early Retirement Benefit
When a member leaves employment after reaching the prescribed early retirement age of fifty-five (55) years, regardless of service, he/she qualifies to go on early retirement. In terms of the Fund Rules, a member also qualifies to go on early retirement if he/she withdraws from the Fund between the ages of fifty (50) and fifty-four (54) years, and has contributed to the Fund for at least fifteen (15) years.
Normal Retirement Benefit
On attainment of the age of sixty(60) years, a member qualifies to go on normal retirement. A member may however opt to defer retirement for a further period of not more than five (5) years.
Late Retirement Benefit
The Fund Rules provide that a member may opt to defer retirement up to the late retirement age of sixty-five (65) years. A member shall not be eligible to continue as a contributing member of the Fund after attaining the age of sixty-five (65) years. Should a member not claim their benefit at the age of sixty-five (65) years, their pension will be classified as an unclaimed deferred benefit and will still continue to accrue interest/bonuses until it is claimed.
Pension Options at Retirement
When going on retirement, it is important to note that a member’s pension will be payable for life. A member will be required to select one of the options below in order to determine how they will receive their pension benefit. Furthermore, these options also have a bearing on the treatment of the pension benefit in the event of the pensioner’s death:
What do the Retirement Options Entail?
One Third (1/3) Commutation
In terms of the Pension and Provident Funds Regulations, a member is allowed to commute a third of his/ her total pension accumulation upon retirement. The remaining two thirds of the pension accumulation will be reduced to a monthly pension that will be paid to the member for life.
NB: A member cannot opt to be paid a 100% commutation (full pension lump sum) if his/her pension per month is more than the limit prescribed by the Pensions Regulator from time to time. Currently, the limit is ZWL$36,000 per annum which translates to ZWL$3,000 per month. This means that a pensioner whose annual pension is below ZWL$36,000 or whose monthly pension is below ZWL$3,000 can choose to be paid their pension accumulation as a once off lump sum.
Pension Guarantee Periods
The guarantee period provides continuity of the payment of pension to beneficiaries in the event of death of the member on retirement (now referred to as pensioner). The guarantee period commences from the date the member goes onto pension. In the event that the member dies within the guaranteed period, the next beneficiary will be introduced on pension and be paid a monthly pension until the end of the guarantee period chosen by the member on retirement. If the pensioner outlives the guarantee period, the pension will cease on the member’s death. Where a Joint and Survivorship option had been selected, and either the pensioner or the designated beneficiary outlives the guarantee period, upon the pensioner’s death the pension is payable to the survivor until they die.
Joint and Survivorship Pension Option
Requirements for Processing Retirement Benefits