UPDATE ON CONVERSION TO DC

The TSCSRBS (“the Scheme”) was established on 1st July 2012, pursuant to the provisions of Treasury Circular No.18 of 2010 and subsequent closure of the Defined Benefits (DB) Scheme on 30th June 2012.

The Teachers Service Commission (TSC) restructured its retirement benefits arrangements effective 30th June 2012. TSC had set up a defined benefit (DB) scheme for its employees on 1 January 1993.
For new hires, a defined contribution (DC) scheme was set up effective 1 July 2012.
The employees in the DB scheme were given three options:

• Remain fully in the DB scheme (Option A);
• Retain accrued benefits in the DB scheme and join the DC scheme (Option B); and
• Transfer fully to the DC scheme (Option C).

Annuities were purchased for current pensioners and continue to be purchased for all pensioners in the DB scheme as and when they retire from service.

TSC STAFF RETIREMENT BENEFITS SCHEME

• The Scheme commenced operations on 1st July 2012.
• The Scheme is operated on a Defined Contribution arrangement.
• The members eligible to the Scheme are the permanent & Pensionable employees between the age of 18 and 50 years.
• Early Retirement Age : 50 Years
• Normal Retirement Age : 60
• Contribution Rate :
  • 10% of basic salary (Member)
  • 20% of basic salary (Employer)
• A Member is encouraged to make additional voluntary contributions (AVC)

Risk Spectrum for Defined Contribution