Retirement Pension is the mode by which most of our members earn a benefit from SPF. From the year 2006 until 2016 we have experienced over 5 fold increase in member earning a retirement pension from 877 to 4226 respectively. Click on the link to read more…
Subsection – The monthly retirement Pension
In most countries and the current trend benefits are calculated on the basis of a benefit formula with an accrual rate specified in the pension legislation.
The emphasis of the reform is a clearer benefit formula for the Seychelles Pension Fund to link benefit with contribution. This provides a more transparent methodology in the calculation of pensions and would institutionalize this methodology. At the same time, this would also make it easier for the Government to make projections on the fiscal outlook of the SPF.
The benefit formula uses pension assessment base –average wage for the past five years x wage growth applicable, accrual rate and years of contribution of the member at the time of retirement to calculate the pension benefit.
Benefit Formula: average wage for the past five years X wage growth applicable (adjustment of past earnings) X accrual rate X years of contribution of the member
The accrual rate for the year 2016 is 1.67%.
The above formula is transparent, easy to understand for members and takes into consideration the years of contribution of the members. It is to encourage members to contribute and work longer to have a better pension. In fact throughout our pension awareness programs at various work places members have expressed the wish that their pension should be linked more to their years of contribution which has been addressed in the new formula
The number of years will gradually increase by one year every year as the SPF gets additional records every year.
So initially wages in last 5 years will be updated by wage growth and then divided by 5 to find the average earnings.
The wage growth data is available from the employment and earning statistics issued by the National Bureau of Statistics .
Download Normal retirement leaflet to read more about
Download application form for normal retirement pension