The Government Employees Pension Fund (GEPF) is Africa’s largest pension fund. Through these investments, the GEPF plays an important role in addressing many of the pressing social and environmental challenges of our time. The South African Revenue Services (SARS) taxes all forms of income including pension benefits. The GEPF is governed by a Board of Trustees who are accountable for its administrative and investment performance. As a long term investor and a defined benefit pension fund whose investment strategy has been designed, taking long-term objectives into account, using a liability driven approach after an extensive asset liability modelling exercise. As a member of the Government Employees Pension Fund (GEPF) one of the most important documents you need to keep up to date is your beneficiary nomination form. Developmental mandate’ refers to investments that deliver both financial and social returns. When a member dies within 5 years of retirement, the following benefits accrues; If you die in service, the spouse’s annuity is half of the annuity that you would have received had you retired on the date of your death, 50% X [(1/55 X final salary X pensionable service period) + R360], A certified copy of the deceased’s ID (certified within the last six months). The only issues that matter in how members are paid, is the years of service that the members have in the GEPF and their final salary at the time they exit the fund, as these determine the amount of the pensions or pay-outs if one resigns. When pension fall behind inflation, GEPF pays catch – up pension increases to the affected pensioners. These are structures and processes that actually exist in how the relationship between the GEPF and PIC is managed. The Government Employees Pension Fund (GEPF) has become aware of individuals falsely posing as agents or officials of the Government Employees Pension Fund who are charging a fee to assist members, pensioners and beneficiaries to claim outstanding funds. PAIDF raised USD 630 million from ten investors, including the GEPF. It doesn’t matter if they’re a permanent employee or contracted for a set period of time. 17. 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. It is not paid to other dependants or beneficiaries who may have been named on the Nomination of Beneficiaries form. Take all factors in consideration, consult a financial adviser because if you for example took the option of reduced monthly pension to enable the spouse to receive 75% of your monthly pension and the spouse dies before you, then you will have to cope with the reduced monthly pension as selected by you because it will not increase just because your spouse died before you. One of the questions I receive from most retirement fund members is about who has a claim to their retirement funds if they die in service. 1 601 child pension beneficiaries as at 31st March 2019. Is it true that the GEPF is considering converting ESKOM’s bonds to Equity? The GEPF regularly reviews its investments to achieve appropriate diversification. If a person is not a government employee, the ordinary retirement ages are usually 60 or 65 years of age. The single most important characteristic of anyone wanting to understand the GEPF, is that it is a defined benefit fund, meaning that the GEPF promises benefits in terms of the rules set out in the Government Employees Pension Law and these benefits are not calculated on the basis of how the fund has invested. 7. Establishing an annuity at Coronation took less than 1 week and payouts paid the same day. Why is former homelands employees’ service of employment not accurate? 1 265 421   active members as at 31 March 2019, 464 138 pensioners and beneficiaries as at 31 March 2019. However, members retiring with less than 10 years of service receive the full lump sum on retirement. it has older members with long service and there are significantly more pensioners than contributing members, benefit payments will exceed contributions. 28. With regard to Eskom the GEPF has not taken any decision to convert this bond exposure into equity. It is also the largest single investor in the Johannesburg Stock Exchange (JSE), playing a critical role in South Africa’s development. Members with 10 or more years of service receive annuities and gratuities. What happens if the member retires but dies within 5 years of retirement? 18. These statements we believe are irresponsible as they create unnecessary anxiety amongst our members and pensioners which often leads to members and pensioners resigning and thus creating financial hardship, often having insufficient funds when they retire. This will inform the trustees as to who your legal and financial dependants are, as … The GEPF is financially stable. Child’s Pension: The GEPF pays annuities (child pensions) to the eligible children of members or pensioners who passes away on or after 1 June 2018. The GEPF has adopted a Responsible Investment policy which integrates Environmental, Social and Governance issues in all its investment decisions. The allocation of the Fund between the different asset classes is set out in the table below: It is important to note that  the PIC does not own the assets, the GEPF does. The GEPF has adopted a Responsible Investment policy which integrates Environmental, Social and Governance issues in all its investment decisions. We would like to stress that the GEPF’s investment returns are highly correlated with growth in the South African economy. There is no penalty that is invoked in the case of resignation. How many members does GEPF have at present? According to the rules, the Fund may thus only approve an increase that is affordable when all the aforementioned factors are taken into account. Through developmental investments, the GEPF plays an important role in addressing many of the pressing economic, social and environmental challenges such as growth, unemployment and inequality. This minimum funding level states that the Fund’s assets must be able to cover at least 90% of its liabilities. Where GEPF is required to pay a portion of the pension interest to the former spouse, it is settling a debt on behalf of the member. PAIDF is invested in Power and Energy, Telecommunications and Transportation infrastructure projects across Africa. As a pension fund matures, i.e. Pretoria – Government Employees Pension Fund (GEPF) announced today that an annual pension increase of 3.6% to its pensioners will effect from 1 April 2020. Since its establishment in 1996, the Government Employees Pension Fund (GEPF) has grown from R 127 billion to R 1.8 trillion currently, becoming Africa’s largest pension fund. What benefits does GEPF offer to members? The Government Employees Pension Fund (GEPF) is Africa’s largest pension fund. 8. 14. How is the annual pension increase determined? Payment may take as long as 60 days from said date and GEPF must pay interest for every day that payment is late. In line with the GEP Law, the Board consists of 16 trustees, led by an elected Chairperson and Deputy Chairperson. 16. The criteria is determined in PSCBC Resolution 2 of 2015. How do we deal with investment proposals? The PIC, in terms of its mandate, also appoints external asset managers to manage part of the portfolio. The investments of the GEPF are managed primarily by the Public Investment Corporation (PIC). Exited or exits the Public Service because of Retirement (including early retirement), death or dismissal on account of incapacity due to ill health or injury; Has attained at least fifty(50) year of age; Remained a principal member of a registered medical scheme for twelve (12) months immediately before the date he/she exited or exits the public service. Why is the medical subsidy received by some pensioners and not all pensioners? GEPF pensioners will receive a 3.6% annual pension increase as of 1 April 2020. 22. This means that what the Fund owns (its assets) must be able to cover the cost of at least 90% of what it owes in terms of the current and future pension payments that it is committed to pay (its liabilities). This guarantees that benefits are paid out efficiently, accurately and on time, while the funds are invested responsibly and are accounted for. 8 employer representatives (nominated by the Minister of Finance), this including a minimum of 1 independent specialist. The working relationship in general between the PIC and the GEPF is a normal one between an asset owner and asset manager like any other pension fund and its investment manager. Date: 02 March 2020. What does ‘developmental mandate’ mean and how much does GEPF allocate towards developmental investment? Kasteelpark, 546 Jochemus Street, Erasmuskloof’ Pretoria. If you are over 55 the investment term is assumed to be 20 years. This makes the GEPF one of Africa’s largest pension fund, thus sustainable for a foreseeable future. How does GEPF ensure members’ and pensioners’ best interests? The only issues that matter in how members are paid, is the years of service that the members have in the GEPF and their average final salary at the time they exit the fund as these determine the amount of the pensions or pay-outs if one resigns. 21. When a GEPF member dies, the GEPF pays a monthly pension to his/her young children – this is called child pension. The GEPF’s investment strategy also uses a liability-driven approach that takes into consideration expected future benefit payments, the actuarial position, and other long-term objectives, as well as the risk to the overall solvency of the Fund. How the GEPF invests its funds is a carefully thought out strategy which is aimed at achieving long term growth for the fund. The investment term and savings period is assumed to be from your current age to age 65, unless you are over 55. The GEPF is a R1.8 trillion Fund making us the largest pension fund in Africa and the single largest investor in the Johannesburg Stock Exchange-listed (JSE) companies. Where pensions fall behind inflation, we also pay catch-up pension increases. What is Spouse Annuity / Life Partner pension? In 2018/19, this mounted to just over R2 billion rands. GEPF is a defined benefit pension fund that was established in May 1996 when various public sector funds were consolidated. The GEPF is a defined benefit fund. The same applies if the member dies while in service and had a full potential service period of at least 10 years – that is pensionable service years plus unexpired years until normal retirement. When a transfer is contemplated, one must take note of the restriction imposed by the GEPF Law regarding accessibility to the funds, prior to retirement and at retirement. And what is child pension? The PIC manages most of our equity, bonds, money market and property portfolios. It usually takes 8 to 12 weeks to finalise the transfer from the time the GEPF confirms that it has received your documents. Some of our structures and processes include Board to Board meetings, EXCO to EXCO meetings, joint and separate Investment Committee meetings, sub-committees as well as audit and risk processes. All the above – mentioned benefits are not offered by any other Fund, therefore there is no reasons to leave the GEPF and join other funds. You will see the investments of the GEPF in the GEPF’s Annual Financial Statements. February 3, 2021. How many children receive child pension at present? GEPF is a defined benefit pension fund that was established in May 1996 when various public sector funds were consolidated. The GEPF has a developmental Investment policy which focuses on targeted investments that contribute to positive economic, social and environmental outcomes for South Africa, while earning good returns for members and pensioners. During this window period, no penalties will be levied on the retirement benefit. Why is GEPF not loaning money to members? Government Employees Pension Fund changes divorce ‘debt’ rules Government pension fund members will no longer accrue pension debt after a divorce settlement payout 26 September 2019 - … Like the majority of private sector pension funds, the GEPF does not carry out its own administration activities. The Spouses pension is a LIFELONG PENSION and does not stop if the spouse remarries. Sunnyside, Pretoria, Tel: +27 80 011 7669 We have more than 1.2 million active members, in excess of 450 000 pensioners and beneficiaries, and assets worth more than R1.61 trillion. 15. Documents to be submitted to claim spousal annuity. If you die with more than one surviving customary spouse, then the spouse’s pension will be divided equally amongst the surviving spouses. everything has been verified, signed off, SARS clearance obtained etc etc, therefore amount to be captured and payment to be made. In 1996 the GEPF had 72% minimum funding level and has grown this to 108% funding level in 2019. 25. The Income Tax Act 58 of 1962, prescribes the basis on which pension benefits must be taxed. The chairperson of the GEPF serves on the board of the UN PRI and GEPF head of actuarial and investment serves on the UN PRI Asset Owner Advisory Committee. Do not share your personal information such identity document number and bank account details. These are: The Board is supported by the Principal Executive Officer and an Executive Management team. It typically takes between 4 and 12 weeks to process a retirement fund pay-out (21 business days at 10X Investments), from the time your last contribution is invested or the required instruction forms are received by the administrator (whichever is the later). To achieve this, the Fund has set aside 5% of the total portfolio for developmental investments, which are invested in South Africa and Africa. The Government Employee Pension Fund (GEPF) has 60 days to pay the non-member spouse from date of receipt of the duly completed choice form. 11. The Board and Management of the GEPF take their fiduciary responsibilities seriously and at all times act in the best interests of its members, pensioners and beneficiaries. The 50% is a default choice if the member did not make a choice of either 50% or 75% which are the options available to members. How true is this? 39. It is very important to note that the GEPF as a current solvency measure of 108%, implying that the GEPF’s assets, most of which are managed by the PIC, significantly exceed its obligations. The GEPF makes its investments with the objective of earning financial returns, as well as social returns for the benefit of its members. Phone: 0800 117 669 The GEP Law does not make provisions for loans to members as the Fund is not a registered Financial Service Provider. Members who had payments of pension interest upon divorce prior to the implementation of the service reduction approach have a period of 12 months within which to notify the GEPF whether they wish for the reduction of their pension benefit to be dealt with in terms of the debt approach or as per the amended legislation i.e. How is the spousal annuity calculated? Gepf Forms. `. Your projected investment value is shown in real terms (today's money). When submitting my application I was told that payments take 60 days but now I am on 120 days. These resignations are in respect of members who have been with the GEPF for a long time, most of the time when members are close to retirement they resign as their pay-outs are quiet substantial. If the main member is not married at the time of death, no spouse’s pension is payable. This is necessary as a down or up scaling will be applied to the period … A monthly pension or annuity is only paid to the  spouse or life partner of a member or pensioner who has died. There are qualifying criteria’s with respect to receiving a medical subsidy. Building 2A, Trevenna Campus What steps have been taken to address problems at the PIC? This means that the benefits are defined in the rules of the fund, therefore the benefits are guaranteed – they don’t depend on how much the member and employer have contributed. Rather, it is administered by GPAA. Fax: +27 12 326 2507, Government Employees Pension Fund Stakeholder Perception Survey, GEPF mourns the passing of two Board Members, GEPF ANNUAL RESULTS AS AT FINANCIAL YEAR-END MARCH 2020. The GEPF Board and Management have put in a number of mechanisms to ensure its asset managers such as the PIC act within the mandates provided. 18. We all must play a role in building our country and economy. GEPF is a defined pension fund, which means the members’ benefits are guaranteed and do not depend on the overall investment performance. The GEPF is committed to ensuring the PIC is an institution of the highest integrity and governance standards. This is done by providing Asset Managers such as the PIC with a mandate that outlines which type of investments can be made, the percentage allocations for each asset class, benchmarks and performance targets, among other guidelines. We pay child pension to the children of our deceased members – from birth to 22 years old. Why does the GEPF invest in SOE’s like Eskom, SANRAL etc? 18 April 2017 at 14:21. Fax: +27 12 326 2507. A once-off lump sum (balance of the 5 years annuity) that will be paid to the member’s beneficiaries, as per the nomination form or paid to the deceased member’s estate, if a deceased member did not have beneficiaries, and, A monthly pension that is paid to the deceased member’s spouse (spousal annuity), A certified copy of the death certificate, A certified copy of your ID your ID and confirmation of death by the Department of Home Affairs, A certified copy of marriage certificate OR your customary union certificate / lobola letter / civil union certificate OR a certificate confirming your Hindu or Muslim marriage OR marriage in terms of any religion. Here we show how to claim your divorce benefit from the GEPF. The Government Employees Pension Fund (GEPF) is very concerned about the statements made by such groupings with respect to allegations of poor mismanagement of funds and we reject these allegations outright. 31. When you resign you become entitled to a pension benefit which is equal to your actuarial interest in the Fund. Spouse Pension. 40. The relationship with the GEPF is managed by a Service Level Agreement. According to GEPF rules, the annual pension increase paid to our members must be at least 75% of the average increase in consumer inflation during the previous year. Sunnyside, Pretoria, Tel: +27 80 011 7669 This is partly as a result of entities that masquerade as champions of members and pensioners but instead sow distrust of the GEPF leading to them prematurely and/or unadvisedly taking their pension benefits out of the fund. The Board of Trustees is accountable for Responsible Investment, engaging on ESG matters at the Board sub-committees including the Investment Committee, and Social and Ethics Committee. It is also important to realise that the cash flows of a pension fund are very different from those of an ordinary business. GEPF’s Responsible Investing (RI) policy is aligned to the Code for Responsible Investing in South Africa (CRISA). According to the Government Employees Pension (GEP) Law, fiduciary responsibility for the Fund rests with the Board of Trustees. In terms of the Resolution the employer shall continue to provide medical assistance if the employee:-. Start a free trial now to save yourself time and money! 10. Building 2A, Trevenna Campus The GEPF follows specific approval and governance processes to approve such investments and requests for draw-downs on the committed funds. The GEPF has been saying that the legislating disclosure is not necessary as it is already happening. Tel: +27 80 011 7669 Fax: +27 12 326 2507 How many GEPF pensioners draw monthly? As the GEPF members, we are flooded by financial advisors encouraging us to leave the GEPF because other funds are more lucrative than the GEPF. It's best that you try and speak to someone at the GEPF and hear what the hold up could be. Where does the Government Pensions Administration Agency (GPAA) fit in? The GEPF would, therefore, like to make its members, pensioners, beneficiaries and their families aware of the following: The GEPF receives a lot of enquiries from active members and pensioners about the possibility of getting cash loans from the Fund. The GEPF takes more or less 60 days to pay-out pension benefit to a member once he/she resigned. 26. It is not true. It is very important to note that the GEPF is not a Government institution but rather a separate juristic entity. The GEPF committed USD 250 million to the Pan African Infrastructure Development Fund (PAIDF) in 2009. 3. Who governs how we function and operate? If the Admission date is prior to 1996/05/01 (prior to amalgamation of the GEPF) select the relevant previous fund code. Every four years the employer, employees and pensioners have the scope to constitute a new Board. 35. Both members and pensioners can claim for a funeral benefit while the spouse pension is for life, meaning that as long as the lawful recipient is alive, he / she will receive the benefit until they pass on. The GEPF has allocated a large portion of its assets to local listed assets, as per the investment policy statement for the benefit of the economy that all South Africans depend on. GEPF must communicate with clients that paid millions into GEPF's account professionally (NOT a Call Centre) and has not given any feedback in nearly 5 months. These documents state that GEPF’s Board of Trustees (the Board) may approve a pension increase if, after the increase has been granted. We pay child pension to the children of our deceased members – from birth to 22 years old. PAIDF has a 15-year term and the investment has generated realised and unrealised proceeds to date. Why are we being taxed while working (salaries) and even when we withdraw our pension benefits? 27. To date, the fund has drawn 25% of the committed capital and made four infrastructure investments. If the GEPF member dies AFTER retirement, GEPF will pay the spouse a monthly pension worth either 50% or 75% of the pension the GEPF member was receiving at the time of the member’s death. The current retirement age in South Africa is 60, however, many people choose to work beyond this age. It was established in May 1996 when the Government Employees Pension Law came into force (Proclamation/Act No.21 of 1996) following the election of South Africa’s first democratic government in April1994. The Government Employee Pension Fund (GEPF) manages pensions and relevant benefits for government employees in South Africa.