When a member resigns or is discharged from government service, he or she receives a resignation benefit. The GEPF offers two options for the payment of the resignation benefit: Have it paid into a bank account as a cash lump sum; or. Transfer it to an approved pension preservation fund.
How long does the Gepf take to pay out?
72 hours
Wherever possible, GEPF tries to pay this benefit within 72 hours of receiving the application. The benefit is paid out as a cash lump sum and is taxable.
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.
NORMAL RETIREMENT: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.
EARLY RETIREMENT: 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 AND 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.