Life Pension
Life Pension

Life Pension

This is a regular monthly payment made to you, usually after retirement. The pensioner is the person who chooses to convert his/her life savings for a life pension.
The Fund provides two types of life pension – single and joint.

Single Pension

This is a pension taken out solely by you for yourself and payment stops on your death.

Joint Pension

Joint pension is taken out by you for yourself and your spouse. Payment to your spouse will only begin in the event of your death if he/she lives longer than you. It is important to note that for joint pension, the spouse that will receive your pension is the spouse registered on the start date of your pension, and NOT any later spouse. Payment to the spouse continues until his/her

Single and Joint Pension

If you wish, you can purchase both a single life pension on your own life, and a joint life pension, which will cover both you and your spouse.

Guarantee for 5 years

The payments are guaranteed for 5 years (60 payments). Should you (or both you and your spouse under a joint pension) pass away before the end of the first 5 years of receiving your pension, then the remaining payments for that period (5 years) will continue to the person nominated by you (the nominee).


You will file the name of your nominee when you fill in FW01, which is the Retirement Application Form.
Your nominee can choose to continue with the monthly payments for the balance of the 5 years or apply to have the remaining installments exchanged for a lump sum, at a rate set by the FNPF after actuarial advice.

If you fail to nominate someone to receive funds in the event of your death, the funds will be transferred to the High Court who will then decide who will receive these funds. As such, to ensure that your funds are paid to the person of your choice, you must formally nominate them at the time you exercise your retirement option.

Pension Conversion Rates

Current pension conversion rates for ages from 55 to 100 are shown on Table 1. The age is the age at the last birthday, as at the date of purchase of the pension.

The rates for joint life pension apply only where the spouse is not more than seven (7) years younger than the pensioner. Different rates will apply to joint spouses who are younger by seven years or more. These rates will be determined by actuary and are available upon request.


55 8.7% 7.5% 70 12.3% 9.8% 85 19.5% 16.4%
56 8.9% 7.6% 71 12.7% 10.0% 86 20.0% 17.0%
57 9.0% 7.7% 72 13.1% 10.3% 87 20.4% 17.6%
58 9.2% 7.8% 73 13.5% 10.6% 88 20.9% 18.2%
59 9.4% 7.9% 74 13.9% 11.0% 89 21.3% 18.7%
60 9.6% 8.0% 75 14.4% 11.4% 90 21.6% 19.2%
61 9.8% 8.1% 76 14.9% 11.7% 91 21.9% 19.8%
62 10.0% 8.3% 77 15.3% 12.1% 92 22.2% 20.3%
63 10.3% 8.4% 78 15.8% 12.6% 93 22.5% 20.8%
64 10.5% 8.6% 79 16.3% 13.1% 94 22.8% 21.2%
65 10.8% 8.8% 80 16.9% 13.6% 95 23.1% 21.7%
66 11.1% 9.0% 81 17.4% 14.1% 96 23.3% 22.1%
67 11.4% 9.2% 82 17.9% 14.6% 97 23.3% 22.4%
68 11.7% 9.4% 83 18.5% 15.2% 98 23.3% 22.7%
69 12.1% 9.7% 84 19.0% 15.8% 99 23.3% 23.1%
100 23.3% 23.3%

Monthly pension calculation

The monthly pension is calculated in the following manner;
Monthly Pension = (Total Pensionable Amount x conversion rate) / 12
Pension conversion rates depend on age, so an older retiree will receive a higher pension than a younger retiree on the same pensionable amount.

Proof of Life – For Continuation of Payments

The FNPF will require evidence from time to time of your continued survival, or of your spouse if applicable. A Pension Renewal Certificate will be required at six-monthly intervals, and the FNPF may also take other steps to ensure that the conditions for payment continue to be met.

Benefits of Life Pension

  • The pension is free of tax under current tax rules.
  • Payments will continue for as long as you live (or, if a joint pension, as long as one of you and your spouse live) giving you the security of knowing you will always have an income.
  • No administrative fee applies.
  • Competitive rates.

Payment Options

  • All pensions will be paid by electronic funds transfer to your bank except for pensioners who live in the islands and do not have access to a bank.
  • Previously other modes of payment were possible, but these will be restricted to those living in the outer islands and Payments will be made monthly.