Types of Pension Benefits

Pensionable officer who retires or asked to retire from Government service is eligible for the following pension benefits: 

Service Pension (monthly payment);

Service Gratuity (lump sum payment); and

Cash Award in lieu of Leave, when applicable (lump sum payment).

The rate of gratuity and pension to be paid depends on the period of reckonable service and the last drawn salary (substantive) by the officer.  The actual calculation is as follows:

Gratuity

7.5% x number of months of reckonable service x corresponding last drawn salary. 

Pension

• 1/600 x number of months of reckonable service x corresponding last drawn salary. 

• subject to a maximum pension of three fifth (3/5) of the last drawn salary (after a service of 30 years or 360 months of reckonable service)

For public service officers, Pension Regulations 1980 is read together with Service Circular No 4 of 1993, which provides for Cash Award in lieu of Leave (GCR), which is leave not utilised due to exigency of the service and is accumulated in accordance to the terms for accumulation under pension regulations and the above circular. Its calculation is -

1/30 x [basic salary + fixed allowances] x no. of leave accumulated up to 120 days.

This Cash Award in lieu of Leave is paid by the Federal Government (through Pension Division) for federal officer and the State Government for state officer.  Statutory Bodies and Local Authorities which adopt Service Circular No. 4 of 1993 will pay Cash in lieu of Leave to their employees. 

Act 227 or Act 239 allow other pension benefits as stated below be paid to persons or  dependants, where suitable: 

Disability Pension;

Disability Pension is and additional benefit given to a Government officer who is required to retire because of health reasons due to:

(i)

 in the course of performing his official  duty;

(ii)

contracting a disease to which he is exposed by the nature of his duty;  or

(iii)

sustaining an injury due to a travel accident.

on condition the injury or disease is not contributed by negligence or misconduct of the officer.

The rate of disability pension is paid according to the degree of disability as follows:-

Degree of Impairment

Rate Paid

Slight impairment

1/8 of last drawn salary 

Impaired

¼ of last drawn salary

Major impaired

3/8 of last drawn salary

Total destroyed

½ of last drawn salary

Dependant's Pension;

Dependant's Pension is an additional pension benefit given to dependants or a pensioner or officer who dies from injury obtained during the course of performing his official duty or contracting a disease or travel accident on condition: 

(i)

the officer died in any one of the above conditions; and 

(ii)

the death of the pensioner or officer occurs within seven years of sustaining the injury or contracting the disease. 

The rate of dependant's pension paid to the dependants of an officer who dies from injury sustained during the course of performing his official duty or contracting a disease or travel accident is calculated based on a fraction of last drawn salary, as follows:-

¨

to the widow, while unmarried and of good character, ..........1/4

¨

to each child up to a maximum of six children, if the widow is eligible, …… 1/24

¨

to each child up to a maximum of six children, if pension is not granted to widow or widow is ineligible, ……...1/12

¨

to each child up to a maximum of six children, upon the death of the widow to whom pension was granted,   .......1/12

¨

to dependant mother, while of good character and without adequate means of support –

¨

if does not leave a widow or widow is ineligible,………1/4

¨

if leaves a widow who has been granted pension,….…..1/8

to dependant father, while of good character and without adequate means of support –

¨

if does not leave a widow and mother has passed away,.…...….1/4

¨

if leaves a widow and his mother has passes away,.……….1/8