This is a guaranteed pension that is available for life, for all members who have retired at the age of 60 onwards. The benefit is a monthly sum of money that is calculated as per a formula and is not related to amount.
SPF Retirement Pension Formula
- Average wage for the past thirteen years
- (Multiplied by) wage growth applicable (adjustment of past earnings)
- (Multiplied by) accrual rate
- (Multiplied by) years of contribution of the member.
The accrual rate for the year 2023 is: 1.30%.
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 .