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.

As of 1st April 2021, if your Compulsory Account balance is less than $45,000, this will be paid to you as a lump sum.

If the Compulsory Account balance, after your election to take a 25% lump sum, is less than $45,000, you will have the option to 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 Balanced Fund. By electing to take a lump sum, you will reduce the size of the pension you will receive.

The pension rate applicable from 8 April 2024 for a member retiring at age 60 is $63 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 or click on this link. Current pension rates for ages 60 to 64 contained in the most recent Actuarial Report are set out in the following table.

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 $45,000, 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 $61 at age 60, the annual pension would have been $1,159 per annum or $96.58 per month for life.

Example 2

• Member is aged 60 and chooses to retire at that age.
• Member has a balance of $70,000 in the Member’s Compulsory Account.
• Member elects to take a 25% lump sum payment ($17,500).
• The remaining balance is $52,500.
• A pension is payable based on $52,500. At the current pension rate applicable of $61 at age 60, the annual pension would be $3,202.50 per annum or $266.88 per month.
• If the member had not elected to take a 25% lump sum payment, a pension would have been payable based on $70,000. This would have resulted in an annual pension of $4,270 or $355.83 per month for life.

Click here to see the latest Actuarial Report and Pension Rate Change notice.