The GPF is designed by combining both concepts of defined benefit and defined contribution. The government employees will contribute 3%-15% (mandatory contribution of 3%, and voluntary contribution ranging from 1-12%) of their monthly salary and remit to the Fund as employee’s contribution. The government as the employer, then tops up with an equal mandatory portion of 3% together with another two percent of the pre-reform compensation.

The money will be credited to each member’s individual account and invested according to the regulations. At the end of membership, a member shall receive two portions of money. The first one is the pension or gratuity under the old defined benefit scheme from government. The second portion is the reimbursement of retirement saving from the GPF. For those who retire from government service with no rights to receive pension or gratuity under the old scheme, they will receive only the reimbursement of their personal saving, including benefits from the GPF.