The Sunday Mail
The Public Service Engagement Forum
THIRTY-FOUR-year-old Musa Ndawana (not his real name), was shocked when he got sight of the measly sum on his aunt’s pension award letter.
He had expected her to receive more from her pension after working for more than 20 years as a teacher.
Ndawana wondered how his aunt could get so little return on her investment, especially during these tough times.
However, his understanding of terminal benefits was, unfortunately, limited.
For starters, how his aunt had exited the civil service determined, to a considerable extent, the sum of her terminal benefits award.
Had his aunt exited through retirement, she would have been eligible for a full retirement package including the employer’s contributions.
This would have added to her package (maybe not too much), but certainly, an amount that would have made a difference.
But because his aunt had left the service through resignation before reaching the retirement age, this meant that she only got what she had contributed plus interest and gratuities.
Ndawana was outraged because he had planned to approach his aunt for a soft loan.
He was so angered that he vented his frustration to his friends when they met for drinks.
It did not occur to him that he was violating his aunt’s right to privacy by sharing this confidential information with his friends. Wisdom would have instructed him that the best course of action was to advise his aunt to approach the right offices for a clear explanation.
The clarification Ndawana needed would have included the full information of how the Government awards terminal benefits.
Below is a full rundown of how, as an employer, the Government awards terminal benefits to those who exit service.
Normal retirement
A member may retire from service upon reaching the pensionable age of 65 years.
Upon retirement, a member is entitled to a lump-sum payment and a monthly pension calculated on the basis of his or her pensionable emoluments and service of at least 10 years.
Early retirement
With the consent of the Public Service Commission, a member may retire from service upon or after having attained the age of 55 years. Upon retirement, a member is entitled to a lump-sum payment and a monthly pension calculated the same way as for normal retirement.
Health retirement/ abolition of office (After 5 years or more pensionable service)
If a member retires due to ill health or abolition of office after pensionable service of 5 years or more, he or she is entitled to a lump-sum payment and a monthly pension.
Death in service
If a member dies in service after contributing for at least 5 years, the surviving spouse is paid a lump sum and a monthly pension for life.
A percentage of spouse pension will be paid to children up to the age of 18.
Children’s pension is doubled if there is no surviving spouse.
Death after retirement
If a former member dies while on pension, the surviving spouse’s pension is paid for life and children’s pension up to the age of 18 years.
Refund benefits
Once-off benefits are payable to members who terminate service and do not qualify for a pension.
The following categories qualify:
Members who resign;
Members discharged from service;
Members who are discharged on medical grounds with less than 5 years’ service;
Members whose posts are abolished and their service are less than 5 years;
Surviving spouse(s) or dependants of a member who dies in service having served for less than five years.
Deferred pension
If a member resigns after contributing for at least 25 years, he or she can opt, before attaining the age of 59 and a half years, in lieu of a refund plus gratuity, for a deferred pension payable on his or her 60th birthday.
In the event that a member opts for deferred pension and dies before their 60th birthday, spouse’s and children’s pension become payable a day after such member’s death.
For any queries or questions, the Public Service Commission advises affected individuals to approach the Pensions Office to avoid being misled by people who do not have the facts or who deliberately distort the facts.
This is part of a series of articles by the Public Service Commission aimed at engaging with and updating the public on matters of public interest that fall within its mandate. For comments, inquiries and questions, please write to [email protected]. Call: +263 242 700881-3 or 793926. WhatsApp +263 788 584 848. For more on the PSC and its programmes, visit www.psc.gov.zw or follow us on Facebook Zimbabwe Public Service Commission or Twitter @Public Service Commission Zimbabwe or LinkedIn Public Service Commission Zimbabwe.
