The Civil Pension Scheme commenced in April 1915 and is governed by the Pension Act. The Scheme provides benefits on retirement, death in service, redundancy and injury/permanent disablement. The benefits are financed from the Government General Revenue on a pay-as-you-go basis.
In view of the increasing numbers of civil servants, the Government commissioned various studies to review the scheme. In 1998, the Retirement Fund Board Scheme was established by Enact of Parliament. The Scheme follows the accumulation model in which the employee and employer pay a fixed percentage into an individual account for the employee.
The fundamental purpose of the establishment of the new Scheme is to promote saving for retirement and to provide benefits in the event of death in service, redundancy and ill health