Defined Benefit
A guaranteed income for life.
The Defined Benefit scheme promises a retirement income based on a formula — giving you certainty about what you'll receive, regardless of investment market conditions.
What is a Defined Benefit pension?
A Defined Benefit (DB) pension promises you a specific income when you retire. The amount is determined by a formula — typically based on how long you have been a member of the scheme and your salary at or near retirement. Once you retire, you receive this income for the rest of your life.
The key feature of a DB pension is certainty. The benefit is guaranteed by the fund. If investments perform poorly, the employer and trustees must find ways to meet the promise — not the member.
How your benefit is calculated
Your DB retirement benefit is calculated using the following formula:
Annual pension = 1/60 × Years of qualifying service × Final pensionable salary
Accrual rate: 1/60th per year. Pensionable salary: your gross annual salary in your final 12 months of service, excluding overtime and variable allowances. The pension is paid monthly for the rest of your life.
Example: A member with 30 years of service and a final pensionable salary of K 120,000 per year would receive an annual pension of K 60,000 (K 5,000 per month).
Who is covered?
The Defined Benefit section is open to all permanent employees of participating employers who joined the fund before 1 January 2010. Employees who joined on or after that date are enrolled in the Defined Contribution section. If you are uncertain which section applies to you, please contact our member services team.
Benefits at a glance
Retirement pension
A monthly income paid for the rest of your life, starting from your normal retirement date (age 60).
Early retirement
Early retirement is permitted from age 55, subject to trustee consent. Benefits are reduced by 0.4% for each month before age 60.
Spouse's / dependant's pension
On a member's death, an eligible surviving spouse receives 50% of the member's pension, paid for life.
Death in service
A lump sum of 3× your annual pensionable salary is payable to your nominated beneficiaries if you die while an active member.
Ill-health retirement
Members permanently incapacitated before age 60 may qualify for an ill-health pension, calculated on actual years of service without age reduction.
Funding and security
The DB scheme is funded: contributions from you and your employer are invested to meet the fund's future obligations. The Board of Trustees regularly commissions actuarial valuations to ensure the fund remains in a healthy financial position. Mukuba's DB scheme is regulated by the PIA, which monitors the fund's solvency on an ongoing basis.
Questions about your DB benefits?
Contact our member services team — we'll walk you through your accrued benefit and what to expect at retirement.