Retirement Benefits

You may retire;

• At 65 years of age (normal retirement) or
• At 55 years to less than 65 years (early retirement) or
• At any age less than 55 years due to ill-health subject to the provision of a medical certificate or
• At any age between the ages of 65 and 70 years (late retirement) subject to approval by your Employer.

At retirement your Accumulated Credit will be used to calculate your monthly pension payable for the rest of your life.
Option 1
You may opt to be paid one third of your Accumulated Credit as a lump sum and the remaining two thirds will be paid out to you as a monthly pension for the rest of your life.
Option 2
You may opt to be paid full commutation if monthly pension is below the IPEC minimum pension of US40.00 at interbank rate per month.

This is the period where pension is certain to be paid irrespective of whether the pensioner is alive or dead. If a pensioner dies within a guarantee period, his/her dependent will be entitled to the outstanding pension for the remaining guarantee period.

Members can choose either 0, 5, 10, or 15 years guarantee period. Note that the longer the guarantee period, the lesser the monthly payment you will get, but the more protection there is for your dependents. You will be given the guarantee period options at retirement.

This depends on the guaranteed period option you chose at retirement. If you opted for a guarantee period of 0 years, your pension ceases at death.

If you opted for joint life guarantee periods (i.e., 5, 10, or 15 years) and die before the guarantee period expires, your pension will continue to be paid to your spouse until they die.

Under current legislation, one third (1/3) of your capital value may be taken as a lump sum, which will NOT be subject to PAYE but is taxable if you retire in the year you turn 55 years of age. However, the monthly pension is subject to PAYE/income tax if the amount falls within the taxable bracket and you are below 56 years of age.

On a regular basis, the Fund Actuary calculates the funding level of the Fund and recommends to the Board of Fund, a pension increase which may be awarded to the pensioners upon approval by the Insurance and Pensions Commission (IPEC).

All pensioners are required to complete a Life Certificate by 28 February every year to show that they are still alive. If you fail to complete the life certificate, the pension would be suspended. The benefits would be reinstated upon completing the life certificate.

• Certified copy of your Identity Document (ID) or valid Passport or Driver’s License,
• Spouse’s certified copy of Identity Document (ID),
• Proof of marriage (certified copy of the Marriage Certificate or Confirmation of customary marriage from civil or magistrate court or an affidavit),
• Fully completed Member Exit Form submitted by the Employer,
• Fully completed Employer Benefit Form for Employer extended benefits,
• Current Banking Details,
• Fully completed Medical Aid Application Form,
• Letter to confirm if the member wants to continue with Zesa Group Life Assurance (ZGLA),
• Medical certificate (in case of ill-health retirement),
• A copy of your last payslip.