Organization Name : GEPF
Facility Name : Retirement & Resignation Benefits
Applicable For : Government Employees in South Africa
Website : https://www.gepf.co.za/retirement-benefits/
GEPF Retirement Benefits
The GEPF provides for normal and early retirement, as well as retirement for medical (ill health) reasons. Members whose employment have been affected by restructuring or reorganisation are also able to receive retirement benefits.
Related / Similar Service : GEPF Death Benefits
Sixty (60) years is the normal retirement age for GEPF members. The benefits paid depend on whether a member has less than 10 years’ pensionable service, or 10 or more years of pensionable service.
Members with less than 10 years’ service receive a gratuity – a once-off cash lump sum that is equal to their actuarial interest in the Fund. Members with 10 or more years’ service receive a gratuity and a monthly pension annuity.
Under certain circumstances, members may retire early, that is before reaching the normal retirement age of 60. Again, the member’s years of pensionable service determine the benefits.
Members with 10 or more years of service receive annuities and gratuities. These are calculated in the same way as for normal retirement, but with a reduction of a third of one percent (0, 33%) for each month between the dates of early retirement and normal retirement.
Ill Health & Other Retirements
Enhanced benefits are paid when members retire for medical reasons, when injured on duty, or when their posts are abolished through organisational restructuring. In these circumstances, members receive both annuities and gratuities if they have more than 10 years of pensionable service.
For members with less than 10 years pensionable service, the benefit will be consistent with and not less than the resignation benefit. Members with more than 10 years’ service are also paid an annual supplementary amount.
GEPF Resignation Benefits
These benefits apply to members who resign or are discharged due to misconduct or an illness or injury caused by the member’s own doing. These members have two options: either they can be paid a gratuity – a once-off cash lump sum, or have their benefits transferred to an approved retirement fund.
If benefits are being transferred, the GEPF pays the member’s actuarial interest to the member’s new fund. The amount that is transferred to an approved retirement fund is not taxed at this point as tax is only deducted when the member retires or withdraws cash from the new fund.
1. How do we deal with investment proposals?
The GEPF does not determine the nature and source of proposals made to it and or the PIC. The GEPF through the PIC considers proposals that are in line with its investment objectives and mandates and in the best interests of its members and pensioners.
2. Where does the Government Pensions Administration Agency (GPAA) fit in?
Like the majority of private sector pension funds, the GEPF does not carry out its own administration activities. Rather, it is administered by GPAA.
GPAA is a government component that reports to the Minister of Finance. Its responsibility is to administer funds and benefits on behalf of the GEPF and National Treasury. The relationship with the GEPF is managed by a Service Level Agreement.
3. What benefits does GEPF offer to members?
The GEPF provides :
** Benefits for normal, early, late retirement and ill health retirement
** Benefits for members affected by retrenchment/ restructuring
** Funeral benefits
** Child’s pension
** Spouse pension