Temp 20240605

For Participants Hired Prior to 1 October 2006
For Participants Hired on and after 1 October 2006
Discretionary Benefits
FAQs on Reform of the SRP and Introduction of DC Plan
FAQs on Extension of Normal Retirement Date to Age 65

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Frequently Asked Questions for Participants Hired Prior to 1 October 2006

Participation in the Plan

1. Am I eligible to become a participant in the Plan?

If you are under age 60 on your ADB appointment date, you are eligible to participate in the Plan. Participation in the Plan is mandatory for an eligible staff on regular or fixed-term appointment, unless stated otherwise in his or her terms of appointment. Participation is optional for eligible Board Members and Management.

Persons who join ADB after age 60, staff who are on leave without pay from other international organizations with transfer agreements with ADB, and local staff of the ADB Institute (ADBI) are ineligible to participate in the Plan.

2. When do I become a participant in the Plan?

You become a Participant of the Plan on your appointment date with ADB. The national and administrative staff (NSAS) at Resident Missions become participants of the Plan on the later of 1 January 1999 or their date of appointment, while the NOAS at the Representative Offices become participants of the Plan on the later of 1 January 2004 or their date of appointment.

Eligible Board Members and Management may elect to participate in the Plan, within three months of joining ADB.

Contributions

1. How much do I contribute to the Plan?

As a Participant in the Plan, you contribute to the Retirement Fund 9-1/3% of your basic salary (including mid-year and year-end bonuses for NOAS at Headquarters). Your contributions are deducted from your salary, starting from your appointment date up to your date of leaving service (termination date).

You may make additional voluntary contributions to purchase additional pension benefits. Please see Discretionary Benefits.

2. How much does the ADB contribute?

ADB contributes at a variable rate (expressed as a percentage of total salaries of all Participants), based on actuarial advice, to keep the Plan well funded. It also pays for Plan expenses and the cost of administering the Plan (excluding investment management fees of the Staff Retirement Fund, and related expenditures).

Basic Factors in Determining SRP Benefits

1. What factors affect my retirement benefits?

Your benefits depend on the following factors:

• your eligible service, which is your credited length of service in ADB;
• your highest average remuneration (HAR), which is your highest average salary for two consecutive years;
• the pension accrual rate, which is used in calculating your pension; and
• your age when you start to receive your pension.

(There is no direct link between the contributions you and ADB make to the Plan and the benefits under the Plan. However, any benefit paid from the Plan guarantees at least a return of your contributions.)

2. What is eligible service?

Eligible service is the sum of years, months and days of service rendered to ADB for which contributions have been made (including the period of any leave of absence for which contributions continue to be made, transferred service, or restored service).

• Transferred Service from Other Organizations

  If you are a transferee from an organization which has a transfer agreement with ADB, the whole or a portion of the service you earned from such organization will be counted as part of your service, if the value of accumulated service credits were transferred to the Plan under the terms of the applicable transfer agreement. However, the actual service credited under the ADB SRP may be greater than, equal to, or lower than the number of years accrued from the previous organization.

• Restored Service

  If you were previously a Participant and again become a Participant on re-employment, you can be credited with your past service, provided you have not received a withdrawal lump sum for such prior period of participation.

3. How many years of eligible service do I need to be entitled to a pension?

You should have at least three years of eligible service as of your termination date to be entitled to a pension. However, if you are age 60 or older on your termination date, no minimum eligible service is required to be entitled to a pension.

4. What is highest average remuneration (HAR) and how is it computed?

Highest average remuneration (or HAR) means your average annual remuneration during the two consecutive years of service yielding the highest such average (or during your total years of service if they are less than two).

Effective 1 January 1999, the mid-year and year-end bonuses of NOAS in Headquarters are included in the computation of HAR for service on and after 1 January 1999.

5. What is the pension accrual rate?

The pension accrual rate is the rate at which pension benefits accumulate for every year of service. The formula for calculating an annual pension benefit is: pension accrual rate x HAR x eligible service. The pension accrual rate is 2.95%.

Benefits on Retirement

1. What are the benefits payable under the Plan?

The Plan provides the following basic benefits when you leave service:

• a monthly pension for life when you retire, through:
  • an early retirement pension; or
  • a normal retirement pension; or
  • a late retirement pension.
• a monthly pension when you become permanently, whether totally or partially, incapacitated (disabled).
• a lump sum payment if you are not yet eligible for a pension, or if you opt for it in lieu of a pension.

The Plan also provides the following benefits to your surviving spouse and eligible children (or designated beneficiaries) in the event of your death while in service or after retirement:

• if you are married, a spouse's pension and possibly child's benefits; or
• if you are unmarried (or your spouse predeceases you or you have waived your spouse's pension), a lump sum death benefit and possibly child's benefits.

The Plan likewise provides:

• optional benefits to (i) your surviving spouse and eligible children, acquired after retirement, in the event of your death after retirement; and/or (ii) a designated survivor in the event of your death while in service or after retirement; subject to your making a voluntary election to provide such benefits and a reduction in your own pension; and
• option for you to purchase additional lump sum benefit or annual pension upon payment of additional contributions under the Discretionary Benefits scheme of the Plan.
2. When is my normal retirement date?

Your normal retirement date is your 60th birthday. If you leave the ADB on this date, you will be entitled to a normal retirement pension, payable for life.

3. How much is my normal retirement pension?

The amount of your normal retirement pension is equal to 2.95% of your HAR multiplied by the number of years of service (subject to a maximum of 80 % of HAR).

4. When am I entitled to a late retirement pension?

You are entitled to a late retirement pension if your termination date falls after your normal retirement date. This could happen if you have accrued leaves that you will use as terminal leave after your 60th birthday.

5. How is my late retirement pension calculated?

Your late retirement pension is calculated as 2.95% multiplied by your HAR and eligible service as of your termination date, increased by ¼% for each complete month between your normal retirement date and your termination date.

6. When can I take an immediate early retirement pension?

You can take an immediate early retirement pension under any of the following circumstances:

1. Rule of 70. If the sum of your age and service equals 70 or more; or
2. Standard Rule. If you do not meet the Rule of 70, but you are at least age 55 and have at least three years' eligible service.
7. How is my early retirement pension calculated under the Rule of 70?

If you are eligible to retire under the Rule of 70, the amount of your pension will be equal to 2.95% multiplied by your eligible service and HAR as of your termination date.

8. How is my early retirement pension calculated under the Standard Rule?

If you are eligible to retire under the Standard Rule, the amount of your pension will be equal to 2.95% multiplied by your eligible service and HAR as of your termination date, reduced by the smaller of:

1. 1.5% for each year of the period remaining until your normal retirement date; or
2. 1.5% for each year that the sum of your age and service is less than 70.
9. When can I elect a deferred retirement benefit?

If you leave ADB before your normal retirement date, you can opt for payment of a deferred retirement benefit provided you have had at least three years' eligible service at the time of separation.

You can elect to start payment of your deferred pension on any of the following dates:

1. at any age prior to age 55 if you qualify under the Rule of 70;
2. at any age between 55 and 60 under the Standard Rule; or
3. when you reach age 60 under Normal Retirement.
10. How is my pension calculated if I defer payment until I am qualified under the Rule of 70?

Your pension will be calculated on the basis of your service and HAR as of termination date, plus the applicable cost-of-living adjustments from your termination date to the date you are eligible under the Rule of 70 (i.e., your age at payment date plus your eligible service as of your termination date equals 70 or more).

11. How is my pension calculated if I defer payment to age 55 or older, but before I reach age 60?

Your pension will be calculated on the basis of your eligible service and HAR as of your termination date, plus the applicable cost-of-living adjustments, and the early retirement reduction factor will be based on your pension commencement date.

12. How is my pension calculated if I defer payment to age 60?

If you defer commencement of your pension until you reach age 60, the pension will be calculated in the same manner as a normal retirement pension, based on your eligible service and HAR as of your termination date, with cost-of-living adjustments from your termination date to your normal retirement date.

13. If I elect a deferred pension to commence at age 60, do I have an option to subsequently change my payment option?

Yes. Despite your election of a deferred pension at age 60, you may:

1. change the commencement of your pension to any date following your 55th birthday, or younger if you qualify under the Rule of 70, but not later than your 60th birthday; or
2. take a withdrawal lump sum benefit before your pension commences.

A request for such a change must be filed in writing and received by the Administration Committee before the effectivity of your pension, as originally elected.

14. Is there a maximum pension benefit?

Yes. All pension benefits payable to a Participant are subject to a maximum of 80% of HAR which is reached upon completion of 27.12 years of eligible service.

15. Can I commute (or encash) part of my pension?

Yes. You may elect to commute part of your pension before the effective date of your pension. Such election must be submitted in writing and is irrevocable once the commuted lump sum is paid to you or your pension payments have started.

16. What pensions can be commuted?

Normal and late retirement pensions, as well as early retirement pensions (i.e., pensions under the Rule of 70 and the Standard Rule) or deferred pensions, can be commuted into lump sum payments.

17. Up to how much of my pension can I commute?

You can commute up to 50% of your pension into a lump sum and the balance will be paid as a pension. If your pension starts at age 60, the amount of the commuted lump sum is equal to 12.0956 times the amount of pension that you are commuting. Commutation factors vary by age. Please refer to Schedule 6 of the SRP legal document for the commutation factors for various ages from 45 to 65.

18. When is the commuted lump sum paid?

The commuted lump sum is paid on the same date on which your first monthly pension is payable. However, if you leave service and take a deferred pension, your commuted lump sum may be paid immediately after the date you leave service, provided you are at least age 45 on such date, or on the date when your pension first becomes effective.

19. Can I change my commutation option?

Yes. You may revoke or change your commutation option (e.g., the rate of commutation, the timing of payment, or the currency of payment) by providing written instructions before the date on which the commuted lump sum is due to be paid and your pension payment has not started.

20. When is a withdrawal lump sum benefit paid?

A withdrawal lump sum benefit is paid:

1. upon leaving service before age 60, you have not completed three years of eligible service; or
2. you have completed at least three years of eligible service, but you waive your right to a retirement pension and instead choose a withdrawal lump sum payment.
21. How is the withdrawal lump sum benefit calculated?

The withdrawal lump sum benefit is calculated as a percentage of your HAR multiplied by the number of years of eligible service, subject to a maximum of 400 % of your HAR. The percentage varies with the years of eligible service, as shown below:

Eligible Service (Years)	Percentage (%)
0	0
Less than 1	10.0
1	11.5
2	14.0
3	16.0
4	18.0
5	19.5
6	20.0
7	20.5
8	21.0
9	21.5
10 or more	22.0

If your service includes a fraction of a year, the percentage will be interpolated.

22. If I elect to receive a deferred pension and subsequently, before I start receiving the deferred pension, I change my mind and elect a withdrawal lump sum payment, will I be entitled to interest on the lump sum?

Yes. The lump sum benefit will be increased by an amount equal to 5% per annum calculated from one month after you leave service up to the date of actual payment.

Incapacity Pension

1. When is an incapacity pension paid?

An incapacity pension is paid if, prior to your normal retirement date, you leave service because of physical and/or mental illness or injury that is likely to be permanent or of long duration and for which reason you can no longer continue working for ADB in a position you are suited by virtue of your training and experience.

2. What happens if I am partially incapacitated?

You will still be entitled to an incapacity pension, but this will be reduced by an amount which the Administration Committee considers you are reasonably capable of earning, notwithstanding your partial incapacity.

3. How do I apply for an incapacity pension?

You may apply for an incapacity pension by submitting a report from your attending physician with the results of your medical examination. The medical report will be forwarded to and reviewed by a physician (or the ADB Medical Doctor) who is designated by the Administration Committee to certify your medical condition for purposes of determining your incapacity, i.e., whether permanent or temporary, total or partial. Based on the evaluation of your condition, the designated physician may confirm your disability and recommend that you be retired on medical grounds. On the basis of the designated physician's certification, the Administration Committee will decide on your application.

4. For how long is an incapacity pension paid?

An incapacity pension is paid for as long as you remain disabled up to age 60. During this period you will be required by the Administration Committee to be medically examined not more often than once a year by a physician or physicians designated by the Administration Committee. The examination may be carried out at your country of residence unless you and the Committee agree on another place. Upon reaching age 60, you will no longer be required to undergo such examination, but you will continue to be paid a regular pension for the rest of your life as if you had retired at age 60.

5. What happens if I do not subject myself to the annual medical examination?

If you do not comply with the annual medical examination requirement within one year from the date of our request for you to undergo annual medical examination, your incapacity will be considered to have wholly ceased and your incapacity pension will be discontinued. You will then be regarded as having withdrawn from the Plan as of the date when your incapacity pension was discontinued.

6. What happens if my incapacity has ceased?

If prior to your normal retirement date, the Administration Committee determines, on the basis of a medical examination or other acceptable proof that your incapacity has completely ceased or that you have regained your full earning ability, then your incapacity pension is discontinued. If you rejoin ADB, you again become a participant in the Plan.

If you do not rejoin ADB, you will be deemed to have left service as of the date the incapacity pension was discontinued. In that case, you may either elect to receive an early retirement pension or a withdrawal lump sum. However, any commuted or withdrawal lump sum payments to which you are entitled will be reduced by the aggregate incapacity pensions you have received.

7. How is the incapacity pension calculated?

Your incapacity pension will be calculated as 80% of HAR as of the date you were deemed incapacitated. Annually, the incapacity pension is increased for cost-of-living adjustment. On reaching age 60, your incapacity pension will be recalculated as 2.95% of HAR times years of service, subject to a maximum of 80% of HAR. Your service will include those years during which you were receiving an incapacity pension, and the HAR will be increased at the same rate that your incapacity pension was increased during the period of your disability.

8. Can an incapacity pension be paid in a lump sum?

Unlike other pension benefits, an incapacity pension cannot be commuted into a lump sum, either in whole or in part.

Death Benefits

1. Who is considered my spouse under the Plan?

A spouse is the person or persons married to you at the date of your death, provided such spouse(s) was (were) also married to you on the date of your leaving service. In exceptional circumstances, and only at your request, the Administration Committee may determine that a person to whom you are legally married should not be recognized as your spouse for purposes of the Plan.

2. When is my spouse entitled to a pension?

Your spouse is entitled to a pension in the event of your death:

1. while you are still in service;
2. while you are receiving any of the following:
   • Normal retirement pension
   • Late retirement pension
   • Early retirement pension
   • Incapacity pension
3. after you have elected to receive a deferred pension benefit, but have not started receiving the benefit.
3. When is the spouse's pension paid?

In case of your death while in service or while on a deferred pension, the spouse's pension is payable from the date of your death. In case of your death while receiving a pension, the spouse's pension is payable on the first day of the month subsequent to the date of your death.

4. For how long is the spouse's pension paid?

The spouse's pension is payable for life even if your spouse remarries.

5. How much is the spouse's pension?


1. In the event of your death while in service, your surviving spouse's pension will be equal to ½ of the incapacity pension which would have been payable to you had you left service due to total incapacity (i.e., 40% of HAR). On what would have been your 60th birthday, your spouse's pension will be recalculated as 50% of your normal retirement pension, including as service the period between your date of death and your normal retirement date, subject to a minimum pension of 25% of HAR.
2. In case of your death while receiving a normal, late or early retirement pension, your spouse's pension will be equal to ½ of the pension which you were receiving at the date of death or that which would have been payable if a portion thereof had not been commuted into a lump sum.
3. In the event of your death while receiving an incapacity pension, your spouse's pension will be equal to ½ of the pension you are receiving at the time of death.
4. If you are a deferred pensioner and you die before your pension commences, your spouse's pension will be equal to ½ of the full pension which would have been payable to you at age 55, or payable immediately if you were over age 55 at the time of death.
6. Can my spouse opt for a lump sum instead of a monthly pension payment?

No. The spouse's pension is payable only in monthly installments.

7. What happens if I die without leaving a spouse?

A lump sum death benefit may be payable to your designated beneficiary(ies). The benefit will be reduced by the total pension payments (including any commuted lump sum) already paid to you.

8. What happens if my spouse dies while receiving a pension?

A lump sum death benefit will be paid to your designated beneficiary(ies). The benefit will be reduced by the total pension payments (including any commuted lump sum) already paid to you and your spouse.

9. Who is eligible to receive a child's benefit?

Your unmarried children, who at the time of your death are below age 24, are eligible to receive child's benefits provided that they were your children recognized by ADB on the date you left service.

Also eligible to receive a child's benefit is an unmarried child recognized by ADB, regardless of age, who is physically or mentally incapacitated for substantial gainful employment, provided such incapacity occurred before age 24.

10. When is a child's benefit paid?

A child's benefit is paid in the event you die while: (i) in service; (ii) in receipt of a pension; or (iii) on a deferred pension. The child's benefit is payable from the date of your death to the end of month in which the child marries or reaches age 24, whichever is earlier.

11. To whom is the child's benefit paid?

A child's benefit will be paid to the person or persons the Administration Committee considers most appropriate for the welfare of the child. Normally, if your child is a minor (below age 18), the benefit may be paid to your spouse or to the guardian whom you have assigned to have custody of your child and to provide for his or her support. However, at the request of your spouse, or of the guardian, or of your child if he or she is no longer a minor, the Administration Committee may allow the benefit to be paid directly to an account in your child's name.

12. How is the child's benefit calculated?

The child's benefit is calculated as a percentage of your spouse's pension, depending on the number of qualified children at the time the benefit is payable. For one eligible child, the benefit is equal to 60% of the spouse's pension; for two children, 100%; and for three or more children, 120%, equally divided among the number of eligible children.

If you have no spouse at the time of your death, the above percentages are doubled, i.e., 120% for one child, 200% for two children, and 240% for three or more children. The child's benefits will also be doubled in case of death of the parent receiving a spouse's pension.

Where both parents are SRP participants, only one child's benefit is payable.

13. When is a lump sum death benefit paid?

A lump sum death benefit is paid:

1. if upon your death while in service or after retirement, you have no surviving spouse entitled to receive a spouse's pension or you had waived your spouse's pension; or
2. upon the death of your spouse who is receiving a spouse's pension.
14. To whom is the lump sum death benefit paid?

The lump sum death benefit is payable to the person, persons or institutions you indicated in your latest Designation of Beneficiaries form filed with ADB. If you have not designated a beneficiary or if the designated beneficiary dies before you, the lump sum death benefit will be paid to your estate.

15. How is the lump sum death benefit calculated?


1. In case of your death while in service, the lump sum death benefit is calculated as a percentage of your HAR multiplied by the number of years of eligible service (please see Schedule 2 of the Plan for the percentages), subject to a maximum of 400% of HAR. For service which includes a fraction of a year, the percentages will be interpolated.
2. In case of your death while on a deferred pension, the lump sum death benefit will be calculated as in the preceding paragraph, to be increased by an amount equal to 5% per year from the date one month after the date of leaving service up to the date of actual payment.
3. In case of your death after retirement, the lump sum death benefit will be equal to the excess, if any, of -
   1. 10% of your HAR multiplied by the number of years of eligible service, plus an amount equal to a percentage of the annual pension which you were receiving at the date of death (please see the Schedule 4 of the Plan for the percentages), over
   2. the total pension payments, including any commuted lump sum, made to you.
4. In case of death of your spouse while in receipt of a pension, the lump sum death benefit will be equal to the excess, if any, of -
   1. 10% of your HAR multiplied by the number of years of eligible service, over
   2. the total pension payments, including any commuted lump sum, made to you and your spouse.
Optional Survivor Benefits

1. Can I provide a pension to my spouse who was not married to me when I left the ADB service?

Yes. You can provide an optional spouse's pension to a person whom you marry after leaving ADB. However, you have to submit your election within 180 days of your marriage and the election shall be effective one year after marriage. Your pension will be reduced to pay for such an election on the effective date of the election.

2. How much is the reduction in my pension to provide an optional spouse pension?

The reduction depends on the amount of pension you wish to provide for your spouse, your age on the effective date of election of the optional spouse's pension, and the difference in your age and your spouse's age as of the effective date of such election.

3. How much is the pension payable to my spouse?

You choose the amount of pension you wish to provide your spouse. However, such amount should not reduce your pension to an amount which, together with any reductions for pensions to a designated survivor and/or child, and commutation of pension, would make your pension less than one-third of your full, unreduced pension. Moreover, the pension to your spouse should not be larger than your reduced and/or commuted pension.

4. When is my spouse entitled to receive the pension and when is the pension paid?

Provided you submitted your election within 180 days of your marriage, your spouse becomes entitled to receive the pension in the event of your death at least one year after your marriage. The pension is paid on the day after your death and it is payable for life even if your spouse remarries.

5. Can I provide a pension to any person I name to receive such pension?

Yes. You can provide an optional designated survivor's pension to any person you choose to receive such pension. However, you have to submit your election prior to the commencement of your own pension. Your pension will be reduced to pay for such an election.

6. How much is the reduction in my pension to provide a designated survivor pension?

The reduction depends on the amount of pension you wish to provide for the designated survivor, your age on the commencement date of the pension, and the designated survivor's age on your normal retirement date.

7. How much is the pension payable to my designated survivor?

You choose the amount of pension you wish to provide your designated survivor. However, such amount should not reduce your pension to an amount which, together with any reductions for pensions to a spouse and/or child, and commutation of pension, would make your pension less than one-third of your uncommuted, unreduced pension. Moreover, the pension to your designated survivor should not be larger than your reduced and/or commuted pension.

8. When is my designated survivor entitled to receive the pension and when is the pension paid?

Your designated survivor becomes entitled to receive the pension in the event of your death after you have started to receive your pension. The pension is paid on the day after your death and is payable for life. In the event of your death or your designated survivor's death prior to the commencement of your pension, then the election is nullified and any benefits will be determined and paid as if no such election had been made.

9. Can I provide a benefit to my child or children acquired after I leave service from the ADB?

Yes. You can provide an optional child's benefit to any child or children, who would, if they had been born or adopted before you left ADB, have qualified for the child's benefits in Section IV.H.(2). However, you have to submit your election within 180 days of the birth or adoption of the child. The election shall be effective immediately and your pension will be reduced accordingly to pay for such an election.

10. How much is the reduction in my pension to provide an optional child's benefit?

The reduction depends on the amount of pension you wish to provide for your child, your age on the effective date of election of the optional child's benefit, the age of the child on the effective date of such election, and the number of children for whom you had already elected to receive an optional child's benefit.

11. How much is the benefit payable to my child?

You choose the amount of benefit you wish to provide your child. However, such amount should not reduce your pension to an amount which, together with any reductions for pensions to a spouse and/or a designated survivor, and commutation of pension, would make your pension less than one-third of your uncommuted, unreduced pension. Moreover, the benefit to your child should not be larger than your reduced and/or commuted pension.

12. When is my child entitled to receive the pension and how long is the pension paid?

Provided you submit your election within 180 days of the birth or adoption of your child, your child becomes entitled to receive the benefit on the day after your death. The benefit is payable for as long as your child meets the qualifications for child's benefits (please see answer to "Who is eligible to receive a child's benefit?")

Discretionary Benefits
Payment of Benefits

1. When is the withdrawal lump sum benefit paid?

The withdrawal lump sum benefit is payable immediately after your termination date. The lump sum death benefit is payable from the date of death.

In certain cases, the Administration Committee has the discretion to postpone making such payment by not more than 60 days after the date on which the payment is due.

2. When and how often are pensions paid?

Normal, late, early and incapacity retirement pensions are payable after the termination date or on the pension commencement date in the case of deferred pensions. In the case of death while in service or while on a deferred pension, the spouse's pension is payable from the date of death. In the case of death after retirement, the spouse's pension is payable on the first day of the following month after the date of death. The children's benefit is payable from the date of death, in either case of death in service or after retirement.

All pensions and children's benefits are paid monthly, at the rate of one-twelfth of the annual amount. The first monthly payment will be a proportionate payment for the period from the date of entitlement (i.e., one day after the termination date or date of death) to the last day of the current month. The commuted lump sum is paid on the same date that the first monthly pension payment is due. Thereafter, subsequent monthly pension payments are payable on the first banking day of each month.

Since pension payments are payable at the start of each month, in case of your death after retirement, the full monthly pension due you would have been paid prior to your death. This means that such pension would not have been prorated from the first day of the month to the date of death. Thus, your spouse's pension, if any, will become payable on the first day of the month following your date of death.

3. In the event of my death, will ADB recover from my survivors' benefits the pension that has been paid to me for the month of my death?

No. The monthly pension paid to you for the month in which your death occurs will not be recovered from your survivors' benefits.

Payment to Beneficiaries

1. Who may be considered as my beneficiaries under the Plan?

Any person may be considered beneficiaries under the Plan, including but not limited to the following:

1. your children, your parents, your grandparents, and your grandchildren or those of your spouse; your brothers and sisters or those of your spouse; the children and grandchildren of such brothers and sisters, and your uncles and your aunts or those of your spouse; and
2. any other persons who are entitled to any beneficial interest in your estate.
2. How do I designate my beneficiaries?

Simply complete and submit to BPDB a Designation of Beneficiaries form duly witnessed or acknowledged. If you wish to change your designation at any time, simply complete and return another properly accomplished Designation of Beneficiaries form.

3. Why is it necessary to complete a Designation of Beneficiaries form when the spouse's pension (and children's benefits) are already pre-determined by the provisions of the Plan?

If at the time of your death, you do not have a spouse, a lump sum death benefit may be payable to your designated beneficiary(ies).

4. Can I direct that a portion of my pension be paid to support one or more of my former spouses?

Yes. You may direct that a specified amount or part of your pension may be paid to one or more of your former spouses, pursuant to a legal obligation arising from your previous marital relationship(s).

5. If I refuse to direct that a portion of my pension be paid to one or more of my former spouses, can such portion still be paid to one or more of my former spouses?

Yes. If you are obligated by a final court order to direct that such payment be made, the Administration Committee shall pay the pension or lump sum accordingly after receipt of the order. However, such order should be valid in your own home country and you can contest the authenticity or validity of the order.

6. Can I direct that a portion of my retirement benefits be paid to satisfy my accountabilities to ADB?

Yes. Upon leaving service, you can direct in writing to the Administration Committee that payment be made to pay off your loans and/or other accountabilities to ADB. Such authorization may also be indicated on the prescribed forms for application for payment of retirement and/or discretionary benefit.

Currency of Retirement Benefits

1. What is the normal payment currency?

It is the currency in which your salary was paid. All benefits under the Plan are paid in the normal payment currency, unless you are eligible for and elect payment in another currency.

2. What is a home currency?

It is the currency of the country of your permanent residence recognized by ADB in the administration of your other benefits (e.g., the country of your permanent place of residence (PPR) for purposes of home country travel).

3. Can I elect payment of my retirement benefit in home currency?

Yes. You may elect to receive your pension or withdrawal lump sum benefit in your home currency. However, no election may be made of the currency of a country which is not a member of ADB.

4. Can I elect payment of my retirement benefit in dual currencies, i.e., in the normal payment currency and in my home currency?

Yes. You may elect to receive your pension or withdrawal lump sum benefit in the normal payment currency and in your home currency. The portion to be paid in your home currency is limited to 25%, 50% or 75% of the pension or the lump sum.

5. If later I change my country of permanent residence, can I receive payment in the currency of my new country of residence?

Yes. However, your request for payment in another currency will be subject to the approval of the Administration Committee, upon compliance with certain requirements. Please contact the pension unit of BPDB for the required documentation.

6. When and how can I change my currency of pension payment?

You may change the currency of your pension by writing to the Administration Committee within 90 days after the date you become entitled to the pension. The currency may not be changed after the 90-day period has lapsed, unless you change your country of permanent residence.

7. Can I elect payment of my commuted lump sum in the normal payment currency and my monthly pension in my home currency, or vice versa?

 

8. Does my spouse have the option to receive his or her pension in another currency?

In case of your death while in service, your spouse may, by writing to the Administration Committee within 90 days after entitlement to a pension, elect to receive pension payments in the currency of the country which, at the time of your death, is his or her place of permanent residence.

In case of death after retirement, your spouse's pension will be paid in the same currency(ies) in which your pension is being paid at the time of your death, or would have been paid, in case of a deferred pension.

9. In what currency is the child's benefit paid?

If the child's benefit is payable to your spouse who is receiving a pension under the Plan, the benefit will be paid in the same currency as your spouse's pension. If the benefit is being paid to a guardian other than your spouse, the benefit will be paid in either the normal payment currency or the currency or currencies of the countries in which, at your death, your children had their places of permanent residence, as the Administration Committee, after consulting such person, considers most suitable for the well-being of your children.

10. What exchange rate is used for lump sum benefits paid in the home currency?

The withdrawal lump sum or commuted lump sum paid in the home currency will be converted using the actual exchange rate ("spot" rate) between the normal payment currency (i.e., salary currency) and the home currency as of the date the lump sum is due and payable to you.

11. How is my home currency pension calculated?

If you elect to receive your pension, wholly or partially, in your home currency, your home currency pension will be calculated on the basis of the average of the inflation-adjusted exchange rates between the normal payment currency and the home currency over your entire service with ADB (subject to a maximum of 180 months) immediately preceding the date on which your pension first becomes effective. Hence, if you are a deferred pensioner, the exchange rate to be used in converting your home currency pension will be computed as of the date when your pension commences, rather than the date you left service.

For staff members who joined ADB prior to 1 October 1996, the exchange rate to be used will be the higher of the 60 month average or the inflation-adjusted career average (subject to 180 months) immediately preceding the date on which the pension first becomes effective.

Cost-of-Living (COL) Adjustments

1. Which benefits are eligible for cost-of-living increases?

All pensions, including discretionary pensions, spouse's pension and child's benefits, are eligible for COL increases. A deferred retirement pension is eligible for COL increases from the date on which you leave service.

2. When and by how much are benefits increased for cost-of-living?

Pensions and children's benefits are reviewed annually on 30 September and adjusted effective 1 October each year by such amounts as the Pension Committee determines, by reference to the national Consumer Price Index (CPI) of the country in whose currency the pension or the children's benefit is being paid. The increase is guaranteed to be at least equal to 3% per year, compounded annually, even if the change in the CPI is below 3%.

Interest Adjustments

1. What interest adjustments are applied to required SRP contributions while on special leave without pay (SLWOP)?

Staff may opt to continue participation during the entire period of SLWOP or a part thereof by paying the required staff (if applicable) and ADB contributions. Staff has the option to leave post-dated checks or pay the required contributions upon return from SLWOP.

If staff elects to continue participation only after return from leave, the required contributions shall be subject to interest of 8% per annum, calculated from 1 January of the calendar year following the date the contribution is due to be paid up to the actual date of payment of contribution.

2. What interest adjustments are applied to discretionary benefits?

The applicable interest rates for active discretionary benefits are shown below.

Start Date of Contribution	Interest
Before 02-NOV-2000	8.0%
=> 02-NOV-2000	8.0% for contributions that stay in the Fund 3 or more years
	5.0% for contributions less than 3 years or left in the Fund beyond age 60
After 30-SEP-2006	6.5% for contributions that stay in the Fund 3 or more years
	5.0% for contributions less than 3 years or left in the Fund beyond age 60

Your discretionary benefits are payable anytime after termination date. The DBs earn applicable interest per annum up to age 60 or date of death. After age 60 or date of death, interest is 5.0% per annum calculated up to date of actual payment.

3. What interest adjustments are applied to SRP benefits?

If entitlement is withdrawal lump sum, the lump sum will be increased by 5.0% per annum calculated from one month after date of termination of employment up to the date of actual payment.

In the event of death while in active service or death while on a deferred pension, the lump sum death benefit will be calculated as a withdrawal benefit, and increased by 5.0% per year from one month after the date of termination of employment to the date of actual payment. The lump sum death benefit will be paid to your designated beneficiaries.

No interest adjustment is payable on pension benefits, but payment is made retroactive to the commencement date of the pension.

Transfer of Pension Rights

• Can I transfer my pension rights?

Transferring of pension rights to and from ADB is temporarily suspended.

Effective 9 December 2022, applications for pension transfers between ADB EBRD, UN, OECD and IMF under the current pension transfer agreements will no longer be accepted until further notice. This will accommodate ongoing efforts to update these pension transfer agreements, including to reflect the latest structure of retirement plans put in place in 2017. Staff who have already accepted an offer to these four institutions will not be affected. For further information, please contact HR4U (malito:hr4u@adb.org).


Non-Alienation of Benefits

1. Can I assign my benefits?

No. You cannot assign, sell, transfer, give away or in any other manner sign away your benefit rights under the Plan. If you attempt to do so, you may lose all your rights to those benefits and the Administration Committee may suspend such benefits temporarily or permanently and apply them for the interest of your family.

2. Can my benefits under the Plan be applied against my accountabilities unilaterally by ADB?

Yes. If it is determined that you have defrauded ADB or the Retirement Fund, the Administration Committee may apply your benefits (regular pension and/or discretionary benefits) under the Plan against your liability to ADB or the Retirement Fund when such benefits become payable to you, your surviving dependents or beneficiaries.


Waiver of Spouse's Pension

1. How do I waive my spouse's pension?

Subject to the approval by the Administration Committee, you can elect not to have a spouse's pension payable on your account, in which case your widow or widower will not be eligible to receive a spouse's pension under the Plan, if you meet any of the following conditions:

1. a signed statement has been presented asserting that:
1. there has been a voluntary separation of more than 18 months wherein the respective parties have not lived together as husband and wife;
2. the separation is likely to be permanent and irrevocable; and
3. no financial support is being provided by either spouse (except for child support); or
2. other proof has been provided of exceptional circumstances and good cause acceptable to the Administration Committee.


Participation During Leave Without Pay

1. Can I continue participation in the Plan during the period of my leave without pay?

Yes, provided you pay both your and ADB's contributions. The contributions may be paid in one lump sum before your leave commences, or in quarterly installments while you are on such leave.

2. Should the election to continue participation be made prior to the special leave without pay or can it be done after I return from sum leave?

You may elect to continue participation in the Plan before your SLWOP starts or after you return to ADB after such leave. If you decide to continue participation upon return after your SLWOP, the contribution you need to pay will include interest at 8% per annum, computed from 1 January of the year following the date the payment(s) would have been due to the date of payment of the contribution.

3. What happens if I do not elect participation during my leave without pay?

When you return to ADB after such leave and later separate from service, the period of absence for which you did not elect participation in the Plan will be excluded when calculating your eligible service.

4. Can I elect to continue participation in the SRP for only a portion of my leave without pay period?

Yes. Only the period of SLWOP for which the corresponding required contributions were paid will be credited as eligible service.

5. Can I continue to make discretionary contributions (lump sum or semi-monthly) during my special leave without pay period?

No. Lump sum contributions have been discontinued as mode of payment to the Discretionary Benefits scheme as part of the SRP reforms last 2017, while semi-monthly contributions will be terminated on the 15th or end of month immediately preceding the start date of staff’s special leave without pay. (Refer to Appendix 6 of AO 3.04.)

Upon return from special leave without pay, the staff may purchase new discretionary benefit contracts but these will be treated as new contracts and not continuation of the previously terminated contracts.

Restoration of Service (Rehires)

1. Can I restore my prior service if I previously received a lump sum payment from the Plan for such prior period of participation?

No. Once you have received a withdrawal lump sum for a prior period of participation and subsequently rejoin the Plan, you will be treated as a new Participant. If you rejoin the Plan on or after 1 October 2006, the provisions applicable to participants who join on or after 1 October 2006 will apply to you.

2. How do I restore my past service if after having terminated or retired I again become a participant and have not received a lump sum payment from the Plan?

Your eligible service for such prior period of participation will automatically be credited to you upon rejoining the Plan. The pension to which you are entitled or contingently entitled will cease and any previous election for a commuted lump sum will be canceled. Upon subsequent termination of employment, your benefits will be recalculated.

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Frequently Asked Questions for Participants Hired on and after 1 October 2006

Participation in the Plan

1. Am I eligible to become a Participant in the Plan?

If you are under age 60 on your ADB appointment date, you are eligible to participate in the Plan. Participation in the Plan is mandatory for an eligible staff on regular or fixed-term appointment, unless stated otherwise in his or her terms of appointment. Participation is optional for eligible Board Members and Management.

Persons who join ADB after age 60, staff who are on leave without pay from other international organizations with transfer agreements with ADB, and local staff of the ADB Institute (ADBI) are ineligible to participate in the Plan.

2. When do I become a participant in the Plan?

You become a Participant of the Plan on your appointment date with ADB.

Eligible Board Members and Management may elect to participate in the Plan within three months of joining ADB.

Contributions

1. How much do I contribute to the Plan?

No mandatory contributions will be required from you.

You may make additional voluntary contributions to purchase additional pension benefits. (Please see Discretionary Benefits.)

2. How much does the ADB contribute?

ADB contributes at a variable rate (expressed as a percentage of total salaries of all Participants), based on actuarial advice, to keep the Plan well funded. It also pays for Plan expenses and the cost of administering the Plan (excluding investment management fees of the Staff Retirement Fund, and related expenditures).

Basic Factors in Determining SRP Benefits

1. What factors affect my retirement benefits?

Your benefits depend on the following factors:

• your eligible service, which is your credited length of service in ADB;
• your highest average remuneration (HAR), which is your highest average salary for two consecutive years;
• the pension accrual rate, which is used in calculating your pension; and
• your age when you start to receive your pension.

(There is no direct link between the benefits under the Plan and the contributions ADB makes to the Plan.)

2. What is eligible service?

Eligible service is the sum of years, months and days of service rendered to ADB for which you were a participant of the Plan (including the period of any leave of absence for which you make contributions on behalf of ADB, transferred service, or restored service).

• Transferred Service from Other Organizations

  If you are a transferee from an organization which has a transfer agreement with ADB, the whole or a portion of the service you earned from such organization will be counted as part of your service, if the value of accumulated service credits were transferred to the Plan under the terms of the applicable transfer agreement. However, the actual service credited under the ADB SRP may be greater than, equal to, or lower than the number of years accrued from the previous organization.

• Restored Service

  If you were previously a Participant and again become a Participant on re-employment, you can be credited with your past service, provided you did not receive a withdrawal lump sum for such prior period of participation.

3. How many years of eligible service do I need to be entitled to a pension?

As of your termination date, you should have at least 5 years of eligible service to be entitled to a pension, even if you are age 60 or older.

4. What is highest average remuneration (HAR) and how is it computed?

Highest average remuneration (or HAR) means your average annual remuneration during the two consecutive years of service yielding the highest such average (or during your total years of service if they are less than two).

The mid-year and year-end bonuses of national and administrative staff (NSAS) in Headquarters are included in the computation of HAR.

5. What is the pension accrual rate?

The pension accrual rate is the rate at which pension benefits accumulate for every year of service. The formula for calculating an annual pension benefit is: pension accrual rate x HAR x eligible service. The pension accrual rate is 1.5%.

Benefits on Retirement

1. What are the benefits payable under the Plan?

The Plan provides the following basic benefits when you leave service:

• a monthly pension for life when you retire, through:
• an early retirement pension; or
• a normal retirement pension; or
• a late retirement pension.
• a monthly pension when you become permanently, whether totally or partially, incapacitated (disabled).
• a lump sum payment if you are not yet eligible for a pension, or if you opt for it in lieu of a pension.

The Plan also provides the following benefits to your surviving spouse and eligible children (or designated beneficiaries) in the event of your death while in service or after retirement:

• if you are married, a spouse's pension and possibly child's benefits; or
• if you are unmarried (or your spouse predeceases you or you have waived your spouse's pension), a lump sum death benefit and possibly child's benefits.

The Plan also provides the option for you to purchase additional lump sum benefit or annual pension upon payment of additional contributions under the Discretionary Benefits scheme of the Plan.

2. When is my normal retirement date?

Your normal retirement date is your 60th birthday. If you leave ADB on this date, and provided you have at least 5 years of eligible service, you will be entitled to a normal retirement pension, payable for life.

3. How much is my normal retirement pension?

The amount of your normal retirement pension is equal to 1.5% of your HAR multiplied by your eligible service (subject to a maximum of 40 % of HAR).

4. When am I entitled to a late retirement pension?

You are entitled to a late retirement pension if your termination date falls after your normal retirement date provided you have at least 5 years of eligible service. This could happen if you have accrued leaves that you will use as terminal leave after your 60th birthday.

5. How is my late retirement pension calculated?

Your late retirement pension is calculated as 1.5% multiplied by your HAR and eligible service as of your termination date.

6. When can I take an immediate early retirement pension?

You can take an immediate early retirement pension under any of the following circumstances:

1. Rule of 70. If the sum of your age and eligible service equals 70 or more; or
2. Standard Rule. If you do not meet the Rule of 70, but you are at least age 55 and have at least five years eligible service.
7. How is my early retirement pension calculated under the Rule of 70?

If you are eligible to retire under the Rule of 70, the amount of your pension will be equal to 1.5% multiplied by your eligible service and HAR as of your termination date.

8. How is my early retirement pension calculated under the Standard Rule?

If you are eligible to retire under the Standard Rule, the amount of your pension will be equal to 1.5% multiplied by your eligible service and HAR as of your termination date, reduced by the smaller of:

1. 1.5% for each year of the period remaining until your normal retirement date; or
2. 1.5% for each year that the sum of your age and eligible service is less than 70.
9. When can I elect a deferred retirement benefit?

If you leave the ADB before your normal retirement date, you can opt for payment of a deferred retirement benefit provided you have had at least five years eligible service at the time of separation (Termination Date). You can elect to start payment of your deferred pension on any of the following dates:

1. at any age prior to age 55 if you qualify under the Rule of 70;
2. at any age between ages 55 and 60 under the Standard Rule; or
3. when you reach age 60 under Normal Retirement.
10. How is my pension calculated if I defer payment until I am qualified under the Rule of 70?

Your pension will be calculated on the basis of your eligible service and HAR as of termination date, plus the applicable cost-of-living adjustments from your termination date to the date you are eligible under the Rule of 70 (i.e., your age at payment date plus your eligible service as of your termination date equals 70 or more).

11. How is my pension calculated if I defer payment at age 55 or older, but before I reach age 60?

Your pension will be calculated on the basis of your eligible service and HAR as of your termination date, plus the applicable cost-of-living adjustments, and the early retirement reduction factor will be based on your pension commencement date.

12. How is my pension calculated if I defer payment to age 60?

If you defer commencement of your pension until you reach age 60, the pension will be calculated in the same manner as a normal retirement pension, based on your eligible service and HAR as of your termination date, with cost-of-living adjustments from your termination date to your normal retirement date.

13. If I elect a deferred pension to commence at age 60, do I have an option to subsequently change my payment option?

Yes. Despite your election of a deferred pension at age 60, you may:

1. change the commencement of your pension to any date following your 55th birthday or younger if you qualify under the Rule of 70, but not later than your 60th birthday; or
2. take a withdrawal lump sum benefit before your pension commences.

A request for such a change must be filed in writing and received by the Administration Committee before the effectivity of your pension, as originally elected.

14. Is there a maximum pension benefit?

Yes. All pension benefits payable to a Participant are subject to a maximum of 40% of HAR which is reached upon completion of 26.67 years of eligible service.

15. When is a withdrawal lump sum benefit paid?

A withdrawal lump sum benefit is paid if:

1. upon leaving service before age 60, if you have not completed five years of eligible service; or
2. if you have completed at least five years of eligible service, but you waive your right to a retirement pension and instead choose a withdrawal lump sum payment.
16. How is the withdrawal lump sum benefit calculated?

The withdrawal lump sum benefit is calculated as 12% of your HAR multiplied by the number of years of eligible service, subject to a maximum of 200% of HAR.

17. If I elect to receive a deferred pension and subsequently, before I start receiving the deferred pension, I change my mind and elect a withdrawal lump sum payment, will I be entitled to interest on the lump sum?

Yes. The withdrawal lump sum benefit will be increased by an amount equal to 5% per annum calculated from one month after termination date up to the date of actual payment.

Incapacity Pension

1. When is a n incapacity pension paid?

An incapacity pension is paid if, prior to your normal retirement date, you leave service because of physical and/or mental illness or injury that is likely to be permanent or of long duration and for which reason you can no longer continue working for ADB in a position you are suited by virtue of your training and experience.

2. What happens if I am partially incapacitated?

You will still be entitled to an incapacity pension, but this will be reduced by an amount which the Administration Committee considers you are reasonably capable of earning, notwithstanding your partial incapacity.

3. How do I apply for an incapacity pension?

You may apply for an incapacity pension by submitting a report from your attending physician with the results of your medical examination. The medical report will be forwarded to and reviewed by a physician (or the ADB's Medical Doctor) who is designated by the Administration Committee to certify your medical condition for purposes of determining your incapacity, i.e., whether permanent or temporary, total or partial. Based on the evaluation of your condition, the designated physician may confirm your disability and recommend that you be retired on medical grounds. On the basis of the designated physician's certification, the Administration Committee will decide on your application.

4. For how long is an incapacity pension paid?

An incapacity pension is paid for as long as you remain disabled up to age 60. During this period you will be required by the Administration Committee to be medically examined not more often than once a year by a physician or physicians designated by the Administration Committee. The examination may be carried out at your country of residence unless you and the Committee agree on another place. Upon reaching age 60, you will receive a normal retirement plension for the rest of your life as if you retired at age 60, and you will no longer be required to undergo such examination.

5. What happens if I do not subject myself to the annual medical examination?

If you do not comply with the annual medical examination requirement within one year from the date of our request for you to undergo annual medical examination, your incapacity will be considered to have wholly ceased and your incapacity pension will be discontinued. You will then be regarded as having withdrawn from the Plan as of the date when your incapacity pension was discontinued.

6. What happens if my incapacity has ceased?

If prior to your normal retirement date, the Administration Committee determines, on the basis of a medical examination or other acceptable proof that your incapacity has completely ceased or that you have regained your full earning ability, then your incapacity pension is discontinued. If you rejoin the ADB, you again become a participant in the Plan.

If you do not rejoin the ADB, you will be deemed to have left service as of the date the incapacity pension was discontinued. In that case, you may either elect to receive an early retirement pension or a withdrawal lump sum. However, withdrawal lump sum payment to which you are entitled will be reduced by the aggregate incapacity pensions you have received.

7. Can an incapacity pension be paid in a lump sum?

The incapacity pension cannot be paid as a lump sum.

8. How is the incapacity pension calculated?

Your incapacity pension will be calculated at 40% of HAR as of the date you were deemed incapacitated. Annually, the incapacity pension is increased for cost-of-living adjustment. On reaching age 60, your incapacity pension will be recalculated at 1.5% of HAR times years of eligible service, subject to a maximum of 40% of HAR. Your eligible service will include those years during which you were receiving an incapacity pension, and the HAR will be increased at the same rate that your incapacity pension was increased during the period of your disability.

Death Benefits

1. Who is considered my spouse under the Plan?

A spouse is the person or persons married to you at the date of your death, provided such spouse(s) was (were) also married to you on termination date. In exceptional circumstances, and only at your request, the Administration Committee may determine that a person to whom you are legally married should not be recognized as your spouse for purposes of the Plan.

2. When is my spouse entitled to a pension?

Your spouse is entitled to a pension in the event of your death:

1. while you are still in service;
2. while you are receiving any of the following:
• Normal retirement pension
• Late retirement pension
• Early retirement pension
• Incapacity pension
3. after you have elected to receive a deferred pension benefit, but have not started receiving the benefit.
3. When is the spouse's pension paid?

In case of your death while in service or while on a deferred pension, the spouse's pension is payable from the date of your death. In case of your death while receiving a pension, the spouse's pension is payable on the first day of the month subsequent to the date of your death.

4. For how long is the spouse's pension paid?

The spouse's pension is payable for life even if your spouse remarries.

5. How much is the spouse's pension?


• In the event of your death while in service, your surviving spouse's pension will be equal to ½ of the incapacity pension which would have been payable to you had you left service due to total incapacity (i.e., 20% of HAR). On what would have been your 60th birthday, your spouse's pension will be recalculated as 50% of your normal retirement pension, including as service the period between your date of death and your normal retirement date.
• In case of your death while receiving a normal, late or early retirement pension, your spouse's pension will be equal to ½ of the pension which you were receiving at the date of death.
• In the event of your death while receiving an incapacity pension, your spouse's pension will be equal to ½ of the pension you are receiving at the time of death.
• If you are a deferred pensioner and you die before your pension commences, your spouse's pension will be equal to ½ of the pension which would have been payable to you at age 55, or payable immediately if you were over age 55 at the time of death.
6. Can my spouse opt for a lump sum instead of a monthly pension payment?

No. The spouse's pension is payable only in monthly installments.

7. What happens if I die without leaving a spouse?

A lump sum death benefit may be payable to your designated beneficiary/ies. The benefit will be reduced by the total pension payments already paid to you.

8. What happens if my spouse dies while receiving a pension?

A lump sum death benefit may be payable to your designated beneficiary(ies). The benefit will be reduced by the total pension payments already paid to you and your spouse.

9. Who is eligible to receive a child's benefit?

Your unmarried children, who at the time of your death are below age 24, are eligible to receive child's benefits provided that they were your children recognized by ADB on your termination date.

Also eligible to receive a child's benefit is an unmarried child recognized by ADB, regardless of age, who is physically or mentally incapacitated for substantial gainful employment, provided such incapacity occurred before age 24.

10. When is a child's benefit paid?

A child's benefit is paid in the event you die while: (i) in service; (ii) in receipt of a pension; or (iii) on a deferred pension. The child's benefit is payable from the date of your death up to the end of the month in which the child marries or reaches age 24, whichever is earlier.

11. To whom is the child's benefit paid?

A child's benefit will be paid to the person or persons the Administration Committee considers most appropriate for the welfare of the child. Normally, if your child is a minor (below age 18), the benefit may be paid to your spouse or to the guardian whom you have assigned to have custody of your child and to provide for his or her support. However, at the request of your spouse, or of the guardian, or of your child if he or she is no longer a minor, the Administration Committee may allow the benefit to be paid directly to an account in your child's name.

12. How is the child's benefit calculated?

The child's benefit is calculated as a percentage of your spouse's pension, depending on the number of qualified children at the time the benefit is payable. For one eligible child, the benefit is equal to 40% of the spouse's pension; for two children, 80%; and for three or more children, 120%, equally divided among the number of eligible children.

If you have no spouse at the time of your death, the above percentages are doubled. The child's benefits will also be doubled in case of death of the parent receiving a spouse's pension.

Where both parents are SRP participants, only one child's benefit is payable.

13. When is a lump sum death benefit paid?

A lump sum death benefit is paid:

1. if upon your death while in service or after retirement, you have no surviving spouse entitled to receive a spouse's pension or you had waived your spouse's pension; or
2. upon the death of your spouse who is receiving a spouse's pension.
14. To whom is the lump sum death benefit paid?

The lump sum death benefit is payable to the person, persons or institutions you indicated in your latest Designation of Beneficiaries form filed with ADB. If you have not designated a beneficiary or if the designated beneficiary dies before you, the lump sum death benefit will be paid to your estate.

15. How is the lump sum death benefit calculated?


• In case of your death while in service, the lump sum death benefit is calculated as 12% of your HAR multiplied by the number of years of eligible service, subject to a maximum of 200% of HAR.
• In case of your death while on a deferred pension, the lump sum death benefit will be calculated as in the preceding paragraph, to be increased by an amount equal to 5% per year from the date one month after the termination date up to the date of actual payment.
• In case of your death after retirement, the lump sum death benefit will be equal to the excess, if any, of -
1. 12% of your HAR multiplied by the number of years of eligible service, over
2. the total pension payments made to you.
• In case of death of your spouse while in receipt of a pension, the lump sum death benefit will be equal to the excess, if any, of -
1. 12% of your HAR multiplied by the number of years of eligible service, over
2. the total pension payments made to you and your spouse.
Discretionary Benefits
Payment of Benefits

1. When is the withdrawal lump sum benefit paid?

The withdrawal lump sum benefit is payable immediately after your termination date. The lump sum death benefit is payable from the date of death.

In certain cases, the Administration Committee has the discretion to postpone making such payment by not more than 60 days after the date on which the payment is due.

2. When and how often are pensions paid?

Normal, late, early and incapacity retirement pensions are payable after the termination date or on the pension commencement date in the case of deferred pensions. In the case of death while in service or while on a deferred pension, the spouse's pension is payable from the date of death. In the case of death after retirement, the spouse's pension is payable on the first day of the following month after the date of death. The children's benefit is payable from the date of death, in either case of death in service or after retirement.

All pensions and children's benefits are paid monthly, at the rate of one-twelfth of the annual amount. The first monthly payment will be a proportionate payment for the period from the date of entitlement (i.e., one day after the termination date or date of death) to the last day of the current month. Thereafter, subsequent monthly pension payments are payable on the first banking day of each month.

Since pension payments are payable at the start of each month, in case of your death after retirement, the full monthly pension due you would have been paid prior to your death. This means that such pension would not have been prorated from the first day of the month to the date of death. Thus, your spouse's pension, if any, will become payable on the first day of the month following your date of death.

3. In the event of my death, will ADB recover from my survivors' benefits the pension that has been paid to me for the month of my death?

No. The monthly pension paid to you for the month in which your death occurs will not be recovered from your survivors' benefits.

Payment to Beneficiaries

1. Who may be considered as my beneficiaries under the Plan?

Any person may be considered beneficiaries under the Plan, including but not limited to the following:

1. your children, your parents, your grandparents, and your grandchildren or those of your spouse; your brothers and sisters or those of your spouse; the children and grandchildren of such brothers and sisters, and your uncles and your aunts or those of your spouse; and
2. any other persons who are entitled to any beneficial interest in your estate.
2. How do I designate my beneficiaries?

Simply complete and submit to BPDB a Designation of Beneficiaries form duly witnessed or acknowledged. If you wish to change your designation at any time, simply complete and return another properly accomplished Designation of Beneficiaries form.

3. Why is it necessary to complete a Designation of Beneficiaries form when the spouse's pension (and children's benefits) are already pre-determined by the provisions of the Plan?

If at the time of your death, you do not have a spouse, a lump sum death benefit may be payable to your designated beneficiary(ies).

4. Can I direct that a portion of my pension be paid to support one or more of my former spouses?

Yes. You may direct that a specified amount or part of your pension be paid to one or more of your former spouses, pursuant to a legal obligation arising from your previous marital relationship(s).

5. If I refuse to direct that a portion of my pension be paid to one or more of my former spouses, can such portion still be paid to one or more of my former spouses?

Yes. If you are obligated by a final court order to direct that such payment be made, the Administration Committee shall pay the pension or lump sum accordingly after receipt of the order. However, such order should be valid in your own home country and you can contest the authenticity or validity of the order.

6. Can I direct that a portion of my retirement benefits be paid to satisfy my accountabilities to ADB?

Yes. Upon leaving service, you can direct in writing to the Administration Committee that payment be made to pay off your loans and/or other accountabilities to ADB. Such authorization may also be indicated on the prescribed forms for application for payment of retirement and/or discretionary benefit.

Currency of Retirement Benefits

1. What is the normal payment currency?

It is the currency in which your salary was paid. All benefits under the Plan are paid in the normal payment currency, unless you are eligible for and elect payment in another currency.

2. What is a home currency?

It is the currency of the country of your permanent residence recognized by ADB in the administration of your other benefits (e.g., the country of your permanent place of residence (PPR) for purposes of home country travel).

3. Can I elect payment of my retirement benefit in home currency?

Yes. You may elect to receive your pension or withdrawal lump sum benefit in your home currency. However, no election may be made of the currency of a country which is not a member of ADB.

4. Can I elect payment of my retirement benefit in dual currencies, i.e., in the normal payment currency and in my home currency?

Yes. You may elect to receive your pension or withdrawal lump sum benefit in the normal payment currency and in your home currency. The portion to be paid in your home currency is limited to 25%, 50% or 75% of the pension or the lump sum.

5. If later I change my country of permanent residence, can I receive payment in the currency of my new country of residence?

Yes. However, your request for payment in another currency will be subject to the approval of the Administration Committee, upon compliance with certain requirements. Please contact the Pension Unit of BPDB for the required documentation.

6. When and how can I change my currency of pension payment?

You may change the currency of your pension by writing to the Administration Committee within 90 days after the date you become entitled to the pension. The currency may not be changed after the 90-day period has lapsed, unless you change your country of permanent residence.

7. Can I elect payment of my entire monthly pension in my home currency, or vice versa?

Yes, you may elect to have your entire monthly pension paid to you in your home currency.

8. Does my spouse have the option to receive his or her pension in another currency?

In case of your death while in service, your spouse may, by writing to the Administration Committee within 90 days after entitlement to a pension, elect to receive pension payments in the currency of the country which, at the time of your death, is his or her place of permanent residence.

In case of death after retirement, your spouse's pension will be paid in the same currency(ies) in which your pension is being paid at the time of your death, or would have been paid, in case of a deferred pension.

9. In what currency is the child's benefit paid?

If the child's benefit is payable to your spouse who is receiving a pension under the Plan, the benefit will be paid in the same currency as your spouse's pension. If the benefit is being paid to a guardian other than your spouse, the benefit will be paid in either the normal payment currency or the currency or currencies of the countries in which, at your death, your children had their places of permanent residence, as the Administration Committee, after consulting such person, considers most suitable for the well-being of your children.

10. What exchange rate is used for lump sum benefits paid in the home currency?

The withdrawal lump sum or commuted lump sum paid in the home currency will be converted using the actual exchange rate ("spot" rate) between the normal payment currency (i.e., salary currency) and the home currency as of the date the lump sum is due and payable to you.

11. How is my home currency pension calculated?

If you elect to receive your pension, wholly or partially, in your home currency, your home currency pension will be calculated on the basis of the average of the inflation-adjusted exchange rates between the normal payment currency and the home currency over your entire service with ADB (subject to a maximum of 180 months) immediately preceding the date on which your pension first becomes effective. Hence, if you are a deferred pensioner, the exchange rate to be used in converting your home currency pension will be computed as of the date when your pension commences, rather than the date you left service.

Cost-of-Living (COL) Adjustments

1. Which benefits are eligible for cost-of-living increases?

All pensions, including discretionary pension, spouse's pension and child's benefits, are eligible for COL increases. A deferred retirement pension is eligible for COL increases from termination date.

2. When and by how much are benefits increased for cost-of-living?

Pensions and children's benefits are reviewed annually on 30 September and adjusted effective 1 October each year by such amounts as the Pension Committee determines, by reference to the national Consumer Price Index (CPI) of the country in whose currency the pension or the children's benefit is being paid. The increase is guaranteed to be at least equal to 3% per year, compounded annually, even if the change in the CPI is below 3%.

Interest Adjustments

1. What interest adjustments are applied to required SRP contributions while on special leave without pay (SLWOP)?

Staff may opt to continue participation during the entire period of SLWOP or a part thereof by paying the required staff (if applicable) and ADB contributions. Staff has the option to leave post-dated checks or pay the required contributions upon return from SLWOP.

If staff elects to continue participation only after return from leave, the required contributions shall be subject to interest of 8% per annum, calculated from 1 January of the calendar year following the date the contribution is due to be paid up to the actual date of payment of contribution.

2. What interest adjustments are applied to discretionary benefits?

For contributions that remain in the SRP Fund at least three years, the applicable interest rate is 6.5%, compounded annually.

For contributions that remain in the SRP Fund less than three years, or contracts retained in the SRP Fund beyond the later of age 60 or termination date, the applicable interest rate is 5%, compounded annually.

Your discretionary benefits are payable anytime after termination date. The DBs earn applicable interest per annum up to age 60 or date of death. After age 60 or date of death, interest is 5.0% per annum calculated up to date of actual payment.

3. What interest adjustments are applied to SRP benefits?

If entitlement is withdrawal lump sum, the lump sum will be increased by 5.0% per annum calculated from one month after date of termination of employment up to the date of actual payment.

In the event of death while in active service or death while on a deferred pension, the lump sum death benefit will be calculated as a withdrawal benefit, and increased by 5.0% per year from one month after the date of termination of employment to the date of actual payment. The lump sum death benefit will be paid to your designated beneficiaries.

No interest adjustment is payable on pension benefits, but payment is made retroactive to the commencement date of the pension.

Transfer of Pension Rights

• Can I transfer my pension rights?

Transferring of pension rights to and from ADB is temporarily suspended.

Effective 9 December 2022, applications for pension transfers between ADB EBRD, UN, OECD and IMF under the current pension transfer agreements will no longer be accepted until further notice. This will accommodate ongoing efforts to update these pension transfer agreements, including to reflect the latest structure of retirement plans put in place in 2017. Staff who have already accepted an offer to these four institutions will not be affected. For further information, please contact HR4U (malito:hr4u@adb.org).

Non-Alienation of Benefits

1. Can I assign my benefits?

No. You cannot assign, sell, transfer, give away or in any other manner sign away your benefit rights under the Plan. If you attempt to do so, you may lose all your rights to those benefits and the Administration Committee may suspend such benefits temporarily or permanently and apply them for the interest of your family.

2. Can my benefits under the Plan be applied against my accountabilities unilaterally by ADB?

Yes. If it is determined that you have defrauded ADB or the Retirement Fund, the Administration Committee may apply your benefits (regular pension and/or discretionary benefits) under the Plan against your liability to ADB or the Retirement Fund when such benefits become payable to you, your surviving dependents or beneficiaries.

Waiver of Spouse's Pension

1. How do I waive my spouse's pension?

Subject to the approval by the Administration Committee, you can elect not to have a spouse's pension payable on your account, in which case your widow or widower will not be eligible to receive a spouse's pension under the Plan, if you meet any of the following conditions:

1. a signed statement has been presented asserting that:
1. there has been a voluntary separation of more than 18 months wherein the respective parties have not lived together as husband and wife;
2. the separation is likely to be permanent and irrevocable; and
3. no financial support is being provided by either spouse (except for child support); or
2. other proof has been provided of exceptional circumstances and good cause acceptable to the Administration Committee.
Participation During Leave Without Pay

1. Can I continue participation in the Plan during the period of my leave without pay?

Yes, provided you pay ADB's contributions. The contributions may be paid in one lump sum before your leave commences, or in quarterly installments while you are on such leave.

2. Should the election to continue participation be made prior to the SLWOP or can it be done after I return from such leave?

You may elect to continue participation in the Plan before your SLWOP starts or after you return to ADB after such leave. If you decide to continue participation upon return after your SLWOP, the contribution you need to pay will include interest at 8% per annum, computed from 1 January of the year following the date the payment(s) would have been due, to the date of payment of the contribution.

3. What happens if I do not elect participation during my leave without pay?

When you return to ADB after such leave and later separate from service, the period of absence for which you did not elect participation in the Plan will be excluded when calculating your eligible service.

4. Can I elect to continue participation in the SRP for only a portionof my SLWOP period?

Yes. Only the period of SLWOP for which the corresponding required contributions were paid will be credited as eligible service.

5. Can I continue to make discretionary contributions (lump sum or semi-monthly) during my special leave without pay period?

No. Lump sum contributions have been discontinued as mode of payment to the Discretionary Benefits scheme as part of the SRP reforms last 2017, while semi-monthly contributions will be terminated on the 15th or end of month immediately preceding the start date of staff’s special leave without pay. (Refer to Appendix 6 of AO 3.04.)

Upon return from special leave without pay, the staff may purchase new discretionary benefit contracts but these will be treated as new contracts and not continuation of the previously terminated contracts.

Restoration of Service (Rehires)

1. How do I restore my prior service if I previously received a lump sum payment from the Plan?

No. Once you have received a withdrawal lump sum for a prior period of participation and subsequently rejoin the Plan, you will be treated as a new Participant. If you rejoin the Plan on or after 1 October 2006, the provisions applicable to participants who join on or after 1 October 2006 will apply to you.

2. How do I restore my past service if after having terminated or retired I again become a participant and have not received a lump sum payment from the Plan?

Your eligible service for such prior period of participation will automatically be credited to you upon rejoining the Plan. The pension to which you are entitled or contingently entitled will cease. Upon subsequent termination of employment, your benefits will be recalculated.

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