Defined Benefit Plans
A pension fund dedicated to Municipal Employees
The primary objective of this Fund is to service the retirement needs of the previously disadvantaged employees within local Government so as to provide the most favourable retirement benefits to employees.
Municipal Employees Pension Fund
This webpage covers certain aspects of general interest and also provides a review of the most important benefits of the fund. This webpage does not replace the official Rules of the Fund. The Rules of the Fund, financial statements and actuarial valuation reports are available on request.
Contributions
By Member
By Council
Category-A
7.5%
22%
Category-B
7.5%
18%
Category-C
7.5%
15%
Benefits
Early Retirement Age 55:
Lump Sum equal to 1/3 of total benefit
PLUS: Monthly Pension for life
Normal Retirmement Age 65:
Lump Sum (1/3 of total benefit)
PLUS: Monthly Pension for life
PLUS:
13th Cheque every November and Annual Increase
Collateral Guarantees:
- In terms of section 19(5) of the PFA of 1956, as amended.
- Pension Backed Housing Loan available.
- Maximum repayment period 20 years OR 64 years
- Interest Rate: Prime rate
- For members own property only
After Care Services:
- Benefit Statement
- Newsletter
- Council Visits
- General Meetings
- Tracing of Beneficiaries
- Pensioner Correspondence
Death Benefits (Pensioner):
Monthly pension spouse : = 50% of pensioner's monthly pension before death.
Resignation Benefits
Ill Health Benefits
Category-A
Lump Sum Only: The greater of 1.5 x TotalMember's Contributions OR Minimum Benefit calculated by the actuary
Less than 10 years Service: 3 X Annual Salary (Lump Sum Only)
Category-B
Lump Sum Only: The greater of 1.2 x TotalMember's Contributions OR Minimum Benefit calculated by the actuary
Less than 10 years Service: 2 X Annual Salary (Lump Sum Only)
Category-C
Lump Sum Only: The greater of 1.1 x TotalMember's Contributions OR Minimum Benefit calculated by the actuary
Less than 10 years Service: 1.5 X Annual Salary (Lump Sum Only)
Death Benefits (member)
Category-A
Leaving Spouse and/or Minor children - Lump sum equals (3) three times annual salary
Category-B
Leaving Spouse and/or Minor children - Lump sum equals (2) two times annual salary
Category-C
Leaving Spouse and/or Minor children - Lump sum equals (1.5) one and a half times annual salary