Pension Benefit

The normal retirement age is 60. This is the age at which you can start receiving a pension. If you wish to defer payment of your pension you need to give 1 months’ notice before you reach the normal retirement age. You can issue a notice to commence payment of your pension at any time after that.

If you choose to retire at age 60, your pension payment is determined by the balance of your Compulsory Account and the pension rate applicable at that time.

If your Compulsory Account balance is less than $15,000, this will be paid to you as a lump sum.

If your Compulsory Account balance is greater than $15,000 you are entitled to elect to take 25% as a lump sum. However, if the Compulsory Account balance, after your election to take a 25% lump sum, is less than $15,000, you will be paid that as a lump sum as well. Otherwise, the balance will determine your pension payment. This balance will be transferred to your Pension Account and will be invested in the CINSF Conservative (Default) Fund. By electing to take a lump sum, you will reduce the size of the pension you will receive.

The pension rate applicable from 1 March 2018 for a member retiring at age 60 is $67 per every $1,000 of the Compulsory Account balance. For details of which pension rates apply to different retirement ages, please contact the CINSF Office. Current pension rates for ages 60 to 64 contained in the most recent Actuarial Report are set out in the following table.

Age at Retirement Pension rate per $1000 in your Compulsory Account
60 $67
61 $68
62 $69
63 $69
64 $71

To illustrate to you how pension payments are calculated, two examples are set out below.

Example 1

  • Member is aged 60 and chooses to retire at that age.
  • Member has a balance of $19,000 in the Member’s Compulsory Account.
  • Member elects to take a 25% lump sum payment ($4,750).
  • The remaining balance is $14,250. As the balance is less than $15,000, this amount will not sustain a pension and therefore be paid as a lump sum.
  • If the member had not elected to take a 25% lump sum payment, a pension would have been payable based on $19,000. At the current pension rate applicable of $67 at age 60, the annual pension would have been $1,273 per annum or $106 per month for life.

Example 2

  • Member is aged 60 and chooses to retire at that age.
  • Member has a balance of $50,000 in the Member’s Compulsory Account.
  • Member elects to take a 25% lump sum payment ($12,500).
  • The remaining balance is $37,500.
  • A pension is payable based on $37,500. At the current pension rate applicable of $67 at age 60, the annual pension would be $2,512 per annum or $209 per month.
  • If the member had not elected to take a 25% lump sum payment, a pension would have been payable based on $50,000. This would have resulted in an annual pension of $3,350 or $279 per month for life.
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