Conditions of Service and Discipline Branch Column
Advance of pension

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Question: "I am a Sergeant on the New Pension Scheme. At the end of next March, I will be 50 years old and eligible for premature retirement. Recently, my wife and I have viewed a house in a new building development on the Mainland. She likes the house very much and wants me to buy it so that we can live on the Mainland after my retirement. However, I do not have sufficient money to buy the house now. What should I do? Can I get the 'lump sum pension' in advance?"

Answer: If the Sergeant's premature retirement is approved, he may apply for an interest-bearing loan secured against his final leave salary and commuted pension gratuity from the Government under Section 633 of the Civil Service Regulations (CSR). The amount of the loan may not exceed his pre-retirement leave salary and elected commuted pension less interest (the minimum amount of interest is $500).

An application for a loan under CSR 633 must be made on GF 557B (GF 557A for re-employed officers) and submitted through the Personnel Wing for approval by the Director of Accounting Services.

The application must reach the Treasury at least three months before the applicant proceeds on pre-retirement leave or terminal leave upon completion of agreement if the loan is paid before commencement of the applicant's leave.