Section 38Part 2 — Defined Benefits
Maximum pensions
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38. (1) No pension provided under the defined benefit part of this Act to a plan member shall, prior to commutation, exceed a monthly amount equal to two-thirds of the highest pensionable earnings drawn by that person during any full calendar month of that person’s Service, except as provided in section 39.
No pension provided under the defined benefit part of this Act to a plan member who has been granted a pension in respect of Other Public Service shall, prior Section 38 Public Service Pensions Act (2023 Revision) Page 32 Revised as at 31st December, 2022 c to commutation, exceed, when added to the amount of any such pension or pensions drawn in respect of Other Public Service, a monthly amount equal to two-thirds of the highest pensionable earnings drawn by that person during any full calendar month of that person’s Service, except as provided in section 39.
For purposes of subsections (1) and (2), an additional pension benefit provided under section 36(2) in respect of an injury occurring in the actual discharge of a plan member’s duties shall not be taken into account; but where a defined benefit plan member is provided such an additional pension under this Act, the monthly amount thereof together with the remainder of that person’s monthly pension or pensions shall not, prior to commutation, exceed five-sixths of that person’s highest pensionable earnings during any full calendar month of that person’s Service.
Where a plan member —
is fifty-five years of age or older but less than sixty-five years of age; and
the plan member has attained the maximum pension eligibility under this Act, the pension benefits accrued to that person at the date that person achieved such pension eligibility shall be determined and frozen and the plan member shall be enrolled on that date in the defined contribution plan.
A plan member enrolled in the defined contribution plan pursuant to subsection (4) shall contribute to the plan until that person reaches normal retirement age or until that person ceases to be employed, whichever is earlier.
Where a plan member reaches normal retirement age or that person ceases to be employed that person shall be paid both —
the pension benefits accrued under the defined pensions benefit plan which have been frozen pursuant to this section; and
the pension benefits, if any, accrued under the defined contribution plan.
A plan member who —
reaches normal retirement age, is receiving a pension and continues to be employed in Service; or
reaches normal retirement age, retired from the Service, is receiving a pension and is subsequently re-employed in Service, shall receive that person’s pension without interruption but shall be ineligible to make contributions or to accrue benefits under the Plan. Public Service Pensions Act (2023 Revision) Section 39 c Revised as at 31st December, 2022 Page 33