Retirement Benefits

Retirement Benefits

A member retires from the Public Service of the Government of Swaziland on attaining the age sixty (60) years, and such retirement shall be referred to as compulsoryretirement except for a member who holds the office of a judge shall retire on attaining the age of sixty-five (65) years.

If a member is promoted or demoted to a rank that has an effect on his compulsory retirement age, such promotion or demotion shall, as from the date of promotion or demotion, be taken into account in determining the compulsory retirement age of that member.

A member entitled to benefits under this part shall be entitled to a pension equal to

2% (two per centum) of his final pensionable salary for each completed year of his

pensionable service or part thereof and the minimum pension of which a member is entitled to shall not be less than E 1000.00 (One Thousand Emalangeni) per month or such other

amount which the Board may, after the Minister's approval, fix from time to time by

publication in the Gazette.Payment of the pension under this regulation shall commence on the last day of the month following retirement and shall thereafter be paid to the member until his death.

Example 1:

Vusi attains his normal retirement age (60yrs) after he has completed 30 years of pensionable service.

His final salary is E150 000 If he decides to take a quarter of his pension in cash at retirement he will receive the following benefits:-

i) He will receive a lump sum equal to:- 2% x E150 000 x 30years x 25% x 15 = E337 500

ii) He will then receive a reduced pension equal to:- 2% x E150 000 x 30years x 75% = E67 500 per annum = E5 625 per month If he decides not to take a portion of his pension in cash at retirement, he will receive the following pension: 2% x E150 000 x 30years = E90 000 per annum = E7 500 per month.

Can I retire before my normal retirement date, and if so, what will my benefit then amount to?

Yes, you may retire at Forty-Five (45) years or more if you have completed ten years or more of continuous service. Your pension shall be reduced by 0.33% for each month that you retire early until you are sixty (60) years.

Example 2:

Sabelo retires early at 55 years, having worked for 25 years and his final salary is E110 000.

He retires 5 years (60 months) earlier than normal.

His benefits would be computed as follows:

i) Gratuity 2% x E110 000 x 25 x 15 x 25% = E206 250.00 Less E206 250 x 60 x .3333% = E41 249.59 E165 000.41

ii) Monthly annuity 2% x E110 000.00 x 25 x 75% = E41 250.00 per annum = E3 437.50 per month

 

What happens if I am forced to retire due to medical unfitness or in the public interest?

You will receive a retirement benefit as calculated, regardless of your age or the number of year’s pensionable service you have completed in the Public Service.

Example 3:

Mandla is forced to retire on medical grounds after having worked for 8 years and has not reached the normal retirement age (60 years).

His final pensionable salary is E150 000. His benefits shall be computed as follows:

Gratuity 2% x E150 000 x 8 x 15 x 25% = E90 000.00.

Monthly Annuity 2% x E150 000 x 8 x 75% = E18 000 per annum = E1 500 per month.

N.B. Mandla faces no penalties even though he has not reached the normal retirement age no has he worked for more than 10 years.

 

What happens if the office held by me is abolished by way of re-organization or re-structuring of the Public Service?

You will receive a retirement benefit as calculated in paragraph, regardless of your age or the number of years pensionable service you have completed in the Public Service.

If however, you are offered a transfer or appointment to a similar position in the Public Service but you declined the appointment, your age and the number of pensionable years you have completed in the service, will apply as set out above.

Example 4 :

Mandla retires early at the age of 55 years through abolition of office, having worked for 20 years and his final salary is E110 000.

His benefits would be computed as follows:

Gratuity 2% x E110,000 x 20 x 15 x 25% = E165,000.00 Additional gratuity 20/180 x E110,000 x 15 x 25% = E45,833.33 Total gratuity = E210,833.33

Monthly Pension 2% x E110,000 x 20 x 75% = E33,000.00 per annum = E2,750.00 per month.

Additional Pension 20/180 x E110,000 x 75% = E9,166.66 (p/a) (763.88 p/m) Total Monthly Pension = E2,750.00 + E 763.88 = E3513.88