This is what happens to your pension if you retire before 60: GEPF
GEPF members with at least 10 years of pensionable service may receive a gratuity and monthly annuity when retiring early, but benefits can be reduced by 0.33% for every month before age 60
The Government Employees Pension Fund (GEPF) has revealed the implications of early retirement for public employees. If members choose to retire before turning 60, their pension benefits may be diminished. To receive a gratuity and a monthly pension annuity, individuals must have at least a decade of pensionable service. However, early retirement comes with a penalty – a reduction of 0.33% per month between the chosen retirement date and the standard retirement age of 60.
Under specific circumstances, members can retire prior to the age of 60. Nevertheless, the extent of their benefits hinges on their years of pensionable service. Those with ten or more years of service are entitled to receive annuities and gratuities, calculated similarly to normal retirement but with the aforementioned 0.33% monthly reduction.
Conversely, employees with less than ten years of pensionable service receive a one-time lump sum, equivalent to their accrued interest in the fund upon normal retirement at 60. The GEPF outlines these rules for both early and standard retirement, emphasizing that the benefits received depend on the length of service.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
