The Separation benefit is given to employees who have not reached the retirement age of 60 but have been separated from the service. The benefit can either be in the form of cash payment or both cash payment and pension.
Eligibility and Benefits
1. If the member has been in the service for at least three years but less than 15 years, and below 60 years of age:
Cash payment equivalent to 100% of the Average Monthly Compensation (average salary in the last three years) for every year of service payable upon reaching age 60.
2. If the member has been in the service for at least 15 years and is below 60 years of age:
Cash payment equivalent to 18 times the Basic Monthly Pension (BMP) payable upon separation and monthly pension for life starting at age 60.
BMP= (.025) x (AMC +700) x Period with Paid Premiums