Glossary of Pensions Terms

1) Alimentary allowance:            A provisional pension granted to Government retirees while waiting on the pension to be finalized

  1. Advance on Gratuity:    A maximum of 70% of the gratuity paid to the pensioner                while the pension is being finalized. This gratuity and the Alimentary Allowance, are referred to as “First Payment”


  1. Reduced Pension:                  This is ¾ of the full pension. The other ¼ would have                                                           been paid as gratuity on election to receive a reduced


  1. Gratuity:                                 The lump sum paid on retirement.


  1. Monthly Pension:                    Basic pension and any Temporary Supplement.


  1. Full Pension:                           The amount granted to pensioners by law.

7) Restoration to full pension:    The reinstatement of the ¼ of full pension previously used to pay Lump sum/gratuity. This reinstatement is done after 12 ½ years from the date of retirement.

8) Contract Gratuity:                   Lump sum paid to contracted officers at the end of each     contract, in lieu of a pension. The amount paid is performance based and ranges between an agreed rate of 15% to 25% of total salary earnings over the contract period.

  1. Widows &Dependents

      Pension:                                 Widows, widowers and dependents including he mother of public officers and the police are eligible for this pension.

10) Widows & Orphan 
       Contributions:                       W&O contributions, are paid for 35 years or until the age of 65 years whichever happens sooner

11) Life Certificate:                     the means by which a pensioner is verified as being      alive. The form is mailed to pensioners on a quarterly basis and must be filled in by the pensioner and certified by a person     qualified to do so                                                      .

12) Temporary Supplement: Increase granted to Pensioners by the Ministry of Finance. This increase is usually approved for payment on the 1st July of each year. The payment of the Temporary Supplement is subject to periodic reviews.

13) Pensions Statutory:     This amount is the portion of the pension payable by law and is governed by the Pensions Act.

14) Pensions Recurrent:    This amount is a supplement to the statutory pension and is used to cushion the effects of inflation. However this amount is not governed by any law and can be legally suspended.

15) Suspension:                 This is where the monthly pension is withheld in the absence of a valid life certificate or where cheques are returned from the post office after being uncollected for two months.