Retirement benefits

by May 21, 2019

When can I retire?

You may retire;

  • At 65 years of age (normal retirement) or
  • At 55 years to less than 60 years (early retirement) or
  • At any age due to ill-health subject to the provision of a medical certificate or
  • At any time between the ages of 60 and 70 years (late retirement) subject to approval by your Employer.

How are my benefits determined?

At retirement your Accumulated Credit will be used to calculate your monthly pension payable for the rest of your life.


You may opt to be paid one third of your Accumulated Credit as a lumpsum and the remaining two thirds will be paid out to you as monthly pension for the rest of your life.

What is a Guarantee Period?

This is the period where pension is certain to be paid irrespective of whether the pensioner is alive or dead, hence 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 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 periods options at retirement.

What if I die just after retirement? Does my pension cease?

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

If you had opted for other guarantee periods i.e. 5,10 or 15 years and you die before the guarantee period has expired, your pension will continue to be paid to your spouse or dependent children for the rest of the guarantee period. Thereafter it ceases.

If you die after the expiry of the guarantee period, your pension ceases and your dependents cannot inherit it. Before you choose a guarantee period at retirement, feel free to consult the Pension Office or HR Department.

Is my retirement benefit taxable?

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

As a pensioner will my pension increase?

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

What is a life certificate?

All pensioners are required to complete a Life Certificate by 28 February every year to show that you are still alive. If you fail to complete the life certificate the pension would be suspended. The pension would be uplifted and back dated when you complete the certificate.

Which documents are required when claiming for my retirement benefits?

  • 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.