Mode of granting old age benefit
"Commuted pension gratuity" (CPG) (lump sum) granted immediately on ceasing employment; Monthly old-age-pension granted to a member who has both i) and ii) above qualifying conditions. This is granted monthly to member (pensioner) for the rest of his or her life. Monthly old-age-pension is guaranteed for 36 months, i.e., if a pensioner dies within the first 36 months after granted lump sum, PPF will continue to remit this benefit to pensioner's survivors for remaining months to make total of 36 months.
However, if such pensioner dies after 36 months after being granted lump sum, this benefit ceases immediately.
A member who ceases employment while below retirement age but with at least 120 months contributing period Is granted "commuted pension gratuity" (CPG) (lump sum) immediately upon ceasing employment; PPF starts granting monthly old-age-pension to such member upon attaining retirement age (55 years); If such member dies before attaining retirement age, PPF immediately starts to grant monthly old-age-benefit to his or her survivors for 36 months.
Documents required Benefit Claim form duly filled by the employer Certified proof from the employer stating the decision to retrench, retire, or remove the member from employment Two passport-size photographs of the member Bank details - Name and Account, for remitting monthly old-age-pension Old Age Benefit Formula:
Commuted Pension Gratuity (CPG) = APE x PS x PF x CF x 0.25
Monthly old-age-pension = APE x PS x PF x 0.75 x 1/12
Where :
APE = Average of the best five years salaries during member's contributing period.
PS =Number of months a member contributed to the Fund.
PF =1/960 up to June 1988; and 1/600 from July 1988 to date
CF = 12.5 |
