Option 3: Part lump Sum, Part Life Pension
Through this option, the member has the opportunity to take part of his contribution as lump sum and the balance as life pension Please note that it is up to the member to decide the amount he prefers to take as lump sum and pension. The pension will cease upon the death of the member .The calculation is based on the funds in members FNPF account. His pension rate for the year 2008 will be 15% therefore the calculation for his pension is as follows.
Account balance = $ 40000
Less lump sum Amt = $12000 (his choice)
Pensionable amount = $28000
• 15% of $28000 = $4200 per annum
= $350 per month