25 Jan 2012

Tonga Public servants start using half of their entitlement from the Retirement Fund

6:30 am on 25 January 2012

Tonga's public servants can now get access to 50 percent of their retirement entitlement.

The Retirement Fund Board made the decision last Thursday.

It is aimed at helping public servants in times of hardship and specifically to go towards paying school fees.

The CEO of the Retirement Fund Board, Saia Havili said that since last Thursday more then 4 hundred public servants have claimed half of their entitlement already.

One condition that's been laid down is that people withdrawing money first need to pay back their 30 percent loan from the Retirement Fund.

Nearly 3-thousand people have taken out a loan from the Retirement Fund.

Mr Havili said it's the Board's duty to protect the fund and make sure it grows so that when people reach retirement they have enough money.

Nearly 4 thousand civil servants are members of the Retirement Fund.