Frequently Asked Questions
What is Pension?
A regular stream of payment received like salary when a member retires at an old age.
What are the benefits of joining the pension plan?
Apart from pension it also insures the member from being disabled and the family from the death of the member.
What rate of contributions will I have to make to get the benefits?
Minimum of 8% from the salary. The government/ employer contributes equal amount.
What is the lump sum payment?
Lump sum payment refers to the Provident Fund benefit that you get when you retire from the service.
How do you calculate the lump sum benefits or the Provident Fund Benefits?
Out of the total contributions received, 62.5 % is diverted to the pension fund and the rest 37.5 % is paid as Provident Fund benefits.
How much pension am I eligible to get when I retire?
Pension is computed using the following formula:
Member pension =	Total pension points X 0.6 of ACSSI of the previous year
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	Full working period

What is Pension Point, ACSSI and Full Working Period?
Pension point is a credit that you earn during each year of active service. It is calculated using the following formula:

Pension Point =	Average Annual Salary of a member
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	Total Number of civil servants
ACSSI determines pension points and is calculated at the end of each financial year. ACSSI is calculated as under:

ACSSI =	Total Salary Amount of all Civil Servants
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	Total Number of civil servants
ACSSI as of 30 June 2007 was Nu. 113,652 per year and Nu. 9471 per month. ACSSI keeps on changing every year.
Full working period is taken as 34 years.
Why is the Pension level indexed to the Average Civil Service Salary Index (ACSSI)
The pension calculation has been indexed to the ACSSI to maintain the purchasing power of the beneficiaries in the future.
What are the eligibility criteria for availing pension?
The member should have superannuated from service because of age and should have made at least ten years of contribution.
Is there a ceiling and floor for the pension?
The member should have superannuated from service because of age and should have made at least ten years of contribution.
Minimum pension is 30 % of ACSSI which is equal to Nu. 2841.00
When do pension start and for how long?
Pension begins from the date of retirement until death.
What is “Permanently Disability”
If a person is certified disabled by a committee of competent doctors, then he/she is eligible to get disability benefit .
He/she will get 30% of ACSSI when his/her disability benefits begins. Upon attaining the minimum civil service retirement age, member will receive normal pension benefits whichever is higher until the death of the member.
What happens if I retire before attaining retirement age?
Pension is normally paid to those who retire only on attaining the minimum civil service retirement age. However, a member may opt and avail early retirement pension if he has crossed 51 years of age and has fulfilled all the other criteria of normal pension.
What will be the difference in my pension if I retire early?
Your accumulated pension points will permanently be reduced at the rate of 1/2 of 1 percent for every month the age falls short of the minimum civil service retirement age.
Will I be paid normal pension once I attain the retirement age?
No. You will continue to get the reduced pension only since you would not made any contribution to the pension fund after retirement.
What happens if I serve less than 10 years and have resigned?
If you contributed more than a year and less than ten years, you are not eligible for pension benefits but you can get refund of all the accumulated contributions in Pension and Provident Fund alongwith interest. However, if you have made less than one year of contribution and exit from the service by any reason, you will be eligible for only your portion of contribution from Provident Fund along with interest. This rule also applies to those who have been terminated and have been convicted of a felony by the law.
What happens if I die leaving behind my spouse and children?
The spouse and children are eligible for surviving family benefits provided the member has served for more than three years. The spouse should be above the age of 50 years and the children should be below the age of 18 years.
The spouse and the children are eligible for surviving family benefits. However, the following condition should be fulfilled;
1. the deceased members should have served for three years and should have contributed too for three years
2. the Spouse (s) should be legally married
3. spouse (s)should have reached the age 50 years or more
4. the children should be less than 18 years of age
How much will my surviving spouse (s) and the children get?
If the criteria is fulfilled, the spouse will get equal to 50 percent of the members pension or minimum pension benefit of 30 percent of the ACSSI, whichever is greater.
When do the benefits start and how long?
Surviving spouse(s) benefit will commence from the month following the date of the death of the member, or the date when the surviving spouse reaches age 50, whichever is later until death or remarriage whichever is earlier while the children will get the benefits until they attain 18 years of age.
If I have more than one spouse, will all the spouse get equal benefits?
If there are more than one spouse(s) surviving the deceased member then such payments shall be made as per the Laws of the Land.
What about the children?
If a deceased member is survived by minor children, surviving children benefits are payable but to the maximum of three children at a time.
In cases where there are more than three or more surviving children, the benefits will be payable to the surviving children who are less than 18 years. The benefits are first paid to those three eldest children. When they attain 18 years of age, the benefit is being passed on to the next children, if any.
How much will my children get and for how long?
Ten (10) percent of ACSSI per child who are less than 18 years of age subject to maximum of three children
Orphan Benefit
If a member is not survived by any spouse, but are survived by children falling within the definition of family, such children will be entitled to an orphan benefit. Such benefits will be payable on fulfilling the following:
Survives by children who are less then 18 years of age.
Worked at least a minimum of 3 years.
Made at least a minimum of 36 monthly contributions to the NPPFP account .
Deceased member is not survived by any spouse(s).
How much will orphan get and for how long?
The orphan benefit payable will be equal to 15 percent of ACSSI per child until attaining 18 years of age
The orphan benefit will be payable to a maximum of three orphans at a time and will run in the order from the eldest to the youngest orphan as per the Laws of the Land
Dependent Parent Benefit
If a member remains unmarried and when no spouse and children benefits are payable on death and leaves behind dependent biological or legally adopted parents, then one of such dependent biological or legally adopted father or mother is entitled to dependent benefits. To avail such benefits you must fulfill the following conditions:
Worked at least a minimum of 10 years
Made at least a minimum of 120 monthly contributions to the NPPFP account
Deceased member not married at all
No spousal benefits are payable
No children benefits are payable
Nomination of one of the dependent parents
May nominate only one of the parents to claim dependent parent benefits on your death.
How much will the nominated dependent parent get?
50 percent of members pension or minimum pension benefit equivalent to 30 percent of ACSSI, whichever is greater..
When do the benefits start and how long?
Nominated dependent parent benefit will commence from the month following the death or the date when the nominated dependent parent reaches minimum civil service retirement age whichever is later
Payable until the dependent parent dies.