REPORT OF THE BOARD OF TRUSTEES
for the year ended 30 June 2013 (continued)
pspf for peace of mind
7. BENEFITS CONFERRED BY THE FUND Items (a) to (e) below describe in brief benefits offered to members of the Fund.
Benefits offered under Mandatory Scheme
Being a defined benefit scheme, the Mandatory Scheme offers benefits based on the defined formula. The benefits are promised to members under the law and are paid regardless of the investment performance. The benefits conferred under the mandatory scheme are: (a) Old Age Benefit
Pension benefit is based on years of service and annual pensionable emoluments. The annual compensation is based upon the highest pensionable emolument enjoyed by the member within twelve months preceding his retirement. Public Service Retirement Benefit Act provides for commutation of 50% of the member’s pension entitlement at a commutation factor of 15.5. The qualifying conditions are that the member must be employed on permanent and pensionable terms and must have contributed to the Fund. A member who has contributed to the Fund for a period of 180 months or 15 years will be paid both pension and gratuity while a member who has contributed to the Fund for a period less than 180 months or 15 years will be paid gratuity only. (b) Death Benefit
This is paid to legal representative of a member who dies while in the service. Dependants of a deceased member who has contributed to the Fund for a period of 180 months or 15 years will be paid both pension and gratuity while a member who has contributed to the Fund for a period less than 180 months or 15 years will be paid gratuity only. Dependants are the widows, widowers, children of not more than 21 years of age or children who are of full age but incapable of working due to specific diseases or mental disablement. (c) Invalidity Benefit
This benefit is paid to any member who has been proven to have been physically or mentally disabled as to be employable. Pension benefit is based on years of service and annual pensionable emoluments. The annual compensation is based upon the highest pensionable emolument enjoyed by the member within twelve months preceding his termination date. The benefit is granted to a member after the Government Medical Board is satisfied that the member is incapable of discharging the duties of his office by reason of becoming invalid. A member who has contributed to the Fund for a period of 180 months or 15 years will be paid both pension and gratuity while a member who has contributed to the Fund for a period less than 180 months or 15 years will be paid gratuity only. PSPF annual REPORT FOR THE YEAR ENDED 30Th JUNE 2013
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