Applying for Pension and Gratuity Awards (Retiring from the Public Service)

The Public Service Pension Plan of The Statute Laws of The Bahamas is a non-contributory plan. The purpose of the plan is to award pensions and gratuities to public officers. The amount of the pension awarded to public officers is determined by the number of continuous months of employment and the annual salary at the time of retirement. The benefits and awards described below are for public officers who qualify for benefits under The Pensions Act, Chapter 43 of the Statute Laws of The Bahamas.

Officers may take the maximum (full) pension for their months of service, in which case they will not receive the lump sum gratuity. However, officers may opt to take a reduced pension of 75% of their maximum (full) pension, and in this case they would receive a lump sum gratuity equal to 25% of their maximum (full) pension multiplied by ten (10).

Officers who do not qualify for the award of a pension, and provided they had completed at least ten (10) years of continuous monthly service, will be eligible for a gratuity equivalent to 4% of the annual salary at the time of retirement, multiplied by the number of completed years of service (less any periods taken on unpaid (no pay) leave and/or contract).

Public officers, who are members of the Pensionable Establishment may qualify for the award of pension provided he/she:

• is a member of the permanent staff.
• has at least five (5) years minimum full-time service.
• service is continuous or unbroken.
• has completed at least 30 years of continuous service.
• is at least 55 years of age.
• is considered by a Government Medical Board to be medically unfit for continued employment.
• has reached the mandatory retirement age of 65 years.

Do you want to know more about Pension and Gratuities Regulations, Benefits and Grants? Download the PDF below.