Retirement Benefits

Members of the Public Service of the Government of Eswatini are entitled to pension benefits upon retirement. The standard retirement age is 60 years, known as compulsory retirement, except for judges, who retire at 75 years.

Compulsory Retirement

A member who retires at the age of 60 will receive a pension calculated at 2% of their final pensionable salary for each year of service. The minimum pension is E1,000 per month or as updated by the Board, with the Minister’s approval.

If a member’s retirement is impacted by promotion or demotion, their compulsory retirement age is adjusted accordingly.

Pension Payment begins on the last day of the month following retirement and continues for the member’s lifetime.

Example 1: Normal Retirement

Vusi retires at 60 with 30 years of service and a final salary of E150,000. If he chooses to take 25% of his pension in cash:

Lump Sum Gratuity:

$2% \times E 150, 000 \times 30 \times 25% \times 15 = E 337, 500$

Reduced Monthly Pension

$2% \times E 150, 000 \times 30 \times 75% = E 67, 500 per annum = E 5, 625 per month$

If he opts for no lump sum, his pension will be:

Full Monthly Pension:

2%×E150,000×30=E90,000 per annum =E7,500 per month

Early Retirement

Members may opt for early retirement at age 45 or older if they have served at least 10 years. However, their pension will be reduced by 0.33% for every month they retire before 60..

Example 2: Early Retirement

Sabelo retires at 55, having served for 25 years, with a final salary of E110,000. He retires 60 months early, so his benefits are calculated as follows:

Gratuity
$2% \times E 110, 000 \times 25 \times 15 \times 25% = E 206, 250.00 - (E 206, 250 \times 60 \times 0.3333%) = E 165, 000.41$
Monthly Annuity:
$2% \times E 110, 000 \times 25 \times 75% = E 41, 250 per annum = E 3, 437.50 per month$

Forced Retirement Due to Medical Unfitness or Public Interest

If a member is forced to retire due to medical reasons or in the public interest, they are entitled to a retirement benefit, regardless of age or years of service.

Example 3: Medical Retirement

Mandla is forced to retire after 8 years of service with a final salary of E150,000. His benefits are calculated as:

Gratuity:
$2% \times E 150, 000 \times 8 \times 15 \times 25% = E 90, 000$
Monthly Annuity:
$2% \times E 150, 000 \times 8 \times 75% = E 18, 000 per annum = E 1, 500 per month$

Note: Mandla faces no penalties despite not meeting the standard retirement age or the 10-year service requirement.

Abolition of Office Due to Reorganization or Restructuring

If a member’s office is abolished due to reorganization, they are entitled to a retirement benefit, irrespective of age or service length. If the member declines a similar position offered, the benefits are calculated based on their service years and age.

Example 4: Retirement Due to Abolition of Office

Mandla retires at 55 after 20 years of service with a final salary of E110,000. His benefits are:

Gratuity:
$2% \times E 110, 000 \times 20 \times 15 \times 25% = E 165, 000$

Additional Gratuity:

$\frac{20)}{(180/} \times E 110, 000 \times 15 \times 25% = E 45, 833.33$

Total Gratuity:
E210,833.33
Monthly Pension:
$2% \times E 110, 000 \times 20 \times 75% = E 33, 000 per annum = E 2, 750 per month$
Additional Pension:
$\frac{20)}{(180/} \times E 110, 000 \times 75% = E 9, 166.66 per annum = E 763.88 per month$

Total Monthly Pension:
E2,750 + E763.88 = E3,513.88

800 2401

info@pspf.co.sz

Retirement Benefits

Example 1: Normal Retirement

Example 2: Early Retirement

Example 3: Medical Retirement

Example 4: Retirement Due to Abolition of Office