BENEFITS PROVIDED BY THE FUND
This section of the member guide deals with the benefits provided by the Political Office-Bearers Pension Fund for its members. The next section covers some additional benefits for Fund members that are not actually provided through the Fund or specifically dealt with in the Fund Rules – these are included in this guide because the cost of these benefits is also part of the total contributions paid by the State for member’s retirement and related benefits.
The areas covered in this section are:
- The design of the Fund
- The contributions payable by you and by the State
- What benefits you will receive when your term of office ends (on retirement or resignation)
- What benefits your dependants will receive (from the Fund) if you die in office.
INTEREST ON LATE-PAID BENEFITS
The situation often arises that the Fund is only in a position to pay benefits to a member who has left office some weeks or even months after the date on which the member leaves office. This can happen because it takes the member some time to decide exactly how she or he wants to deal with the benefit, and to complete the necessary forms. In such cases, benefits will be calculated as follows:
- The benefit amount will remain invested in accordance with the Fund’s investment strategy until the date on which you leave office.
- From this point, net cash or money-market interest earned will be added to the benefit payable.
- A member who leaves office and has not given clear instructions to the Fund within 24 months of her or his office ceasing, will automatically become a deferred beneficiary of the Fund. (The only exception is if the Fund has furnished a guarantee to a Bank in respect of a housing loan to the member, in which case the Fund will have to settle the housing loan out of the member’s benefit when the member leaves office.) When a member becomes a deferred beneficiary, either by choice or after the 24 month period has elapsed, the benefit amount will be taken from the bank account and reinvested in accordance with the Fund’s investment strategy.
This guide includes a summary of the Rules of the Fund and the insurance policies that provide certain benefits for members and their dependents. In the event of a conflict between this guide and the Rules or the insurance policies, the Rules or the insurance policies (as the case may be) will take precedence.
The information in this guide does not constitute advice by either the Board of Trustees or its professional advisors. Members are encouraged to seek expert advice from a personal financial advisor before taking decisions regarding their benefits from the Fund.
The Fund will try to ensure that the material in this guide is up to date and accurate, but this cannot be guaranteed at all times.