Postal address: Private Bag X63, Pretoria, 0001 The payout process only starts at that point. (Usually within 24 hours). If your former employer no longer exists (has closed down), you may have to track your money by contacting a financial adviser, who has access to the Astute system, to do a funds search for you under your ID number. It is payable to the beneficiaries of the deceased member or, if there are no beneficiaries, to the member’s estate. The GEPF is a defined benefit fund; resigning members receive their share of fund If they preserve) or a cash gratuity (if they take the cash). The projected average and poor investment returns are based on historic market returns after inflation from 1900 to 2017. Option 1: Retire with the GEPF If Rose chooses this option it means she chooses to have her pension paid by GEPF after retirement. The Pension Funds Act stipulates what may be claimed or deducted from this balance, and it makes no mention of employer contributions. © 2018 10X Investments (Pty) Ltd. All Rights Reserved. The GEP law was authorised by section 237 of the interim Constitution of South Africa, Act 200 of 1993, that provided for the rationalisation of public administration. Morningstar’s Global Fund Investor Experience 2015 study shows that the average total expense ratio is 1.63% pa (which includes investment and performance fees), with the cost of advice and an administration platform adding an additional 1% to 1.5% pa. The procedure normally takes place over a long period of time with many internal procedures having to be completed. 10X Investments does not in any way guarantee the projected benefits shown; we offer these projections merely to assist you in your financial planning. The unclaimed benefits are as a result of insufficient payment information and untraceable members. 76). It’s probably not as big as you think it is, this income you will receive in retirement. You can either phone GPAA’s toll-free Call Centre on 0800 117 669, or … 7.2.4 To ensure anonymity of the exit interview process, exit interviews will be conducted electronically. The first R25 000 is not taxed, the balance to R660 000 is taxed at 18%, the balance to R990 000 at 27% and the remainder at 36%. Its mandate was to provide pensions administration and other relevant services to the Government Employees Pension Fund (GEPF) and the National Treasury. Morningstar’s Global Fund Investor Experience 2015 study shows that the average total expense ratio is 1.63% pa (which includes investment and performance fees), with the cost of advice and an administration platform adding an additional 1% to 1.5% pa. In November i was told i will get paid 2nd week of december. Retirement due to ill health is often an emotional, demanding time and a complex issue to resolve.. Already a 10X customer? The calculations provided should not be construed as financial, legal or tax advice. © 2018 10X Investments (Pty) Ltd. All Rights Reserved. My attorneys have signed receipt of the documentation. Your EMPLOYER deducts and collects the fund contributions and forwards these to the fund administrator, who keeps a record of the contributions received, and then forwards the money (net of any deductions for admin costs and risk premiums, if applicable) to the investment manager. One of our retirement experts will get back to you soon. The maximum fee charged by 10X in these scales is 1.04% including VAT per annum. In terms of Assets, it has over R1 638 billion and has 1.269 million active members. According to the Fund rules, the annual pension increase paid to GEPF pensioners must be at least 75% of the average increase in consumer inflation during 1 December - 30 November of the previous year. By contributing, you become a MEMBER of the fund. The GPAA had to test bank verification on bank accounts and will process payments for those with verified banking details in the last week of March. Detailed information regarding death benefits is available under the ‘Our benefits’ section of the GEPF website at www.gepf.gov.za.. Your lump sum payout is subject to lump sum tax. The investment with 10X is assumed to charge a fee according to the 10X Investment fee scale and that the client comes directly to 10X (i.e. Your projected benefits are shown in real terms (today's money). Toll Free Call Centre: 0800 117 669. If they do not do so, they are in breach of the fund rules. According to the Fund rules, the annual pension increase paid to GEPF pensioners must be at least 75% of the average increase in consumer inflation during 1 December - 30 November of the previous year. The investment referred to as “Industry” is assumed to charge total fees of 3% including VAT per annum. On retirement, the first R500 000 is not taxed, the balance to R700 000 is taxed at 18%, the balance to R1 050 000 at 27% and any amounts above that at 36%. Postal address: Private Bag X63, Pretoria, 0001 How does your retirement annuity compare to the industry? Download the document for more information. The GEPF offers two options for the payment of the resignation benefit: … You should receive a copy of this at least once a year. We don’t know what your actual payout will be. On resignation, you are taxed per the withdrawal lump sum tax table. In the event of your passing, your employer or your relatives must inform the fund as soon as possible. GEPF FORUM has 36,187 members. Former teacher, Nomusa Mkhize-Mazibuko, whose plight was published by the Daily News last Monday, said since the publication she had received attention from the Government Employees Pension Fund (GEPF) in Pretoria. Use our existing customer contact form to get in touch. We do not have the resources to do so, or the authority to intervene on your behalf. The information on our website does not constitute advice as defined by the FAIS Act. The 10X default glide path automatically matches the investment portfolio’s asset allocation to your assumed retirement age. The investment referred to as “Industry” is assumed to charge total fees of 3% including VAT per annum. The projected benefits are shown at age 65, unless you have changed the retirement age on the output page. The projections are based on the 10X High Equity portfolio, which is designed for investors with an investment term of 5 years and longer. Anyone who is a factual dependent would need to submit a dependency claims form to the Fund, for consideration. After a certain period (two years or so), your benefit may be transferred to an unclaimed benefits fund. Each year your projected income will keep pace with inflation, provided that it falls within these regulatory limits. It is the intention of the Department to give departing employees the opportunity to complete the exit interview process prior to their departure. Bookmark the permalink. Investing is simple and easy with 10X's award winning low cost investment solution. We have written a separate blog on the retirement fund death benefit. Government Employees Pension Fund has confirmed that there are some delays in pay-outs. The Government Employees Pension Fund (GEPF) is a defined benefit fund that manages pensions and related benefits on behalf of government employees in South Africa. This depends on the administrator, on the efficiency of their processes, on the motivation of their staff, and on the claims backlog. For any other funds benefit calculations, please contact the Government Pensions Administration Agency. Its current benefit structure offers members: […] One of the more frequent questions we receive from members of the Government Employee Pension Fund (GEPF) relates to the treatment of their pension fund on divorce. a) Incorrect Bank Account Number or No Match Found b) Incorrect ID Number or Company Registration Number c) Incorrect Initials d) Incorrect Name Or Incorrect Supplier Name e) Unique ID must be unique. What if my payout is delayed? Mr Krishen Sukdev, CEO, GPPA, said the Agency had been established in terms of the Public Services Act (PSA) with effect from 1 April 2010. So if you resign at the beginning of the month, it will take almost a month before your fund receives your final contribution from your employer. I’m expecting feedback at least by Friday and she advised me to call her back if there was no progress by Friday. The benefit calculator should be used for GEPF benefit calculations. The portfolio may be highly volatile over shorter periods. To qualify for the transfer option, the member must choose an approved pension preservation fund. The fees used in the projections are inclusive of VAT. An inflation-linked guaranteed annuity will provide you with an income that grows annually with inflation and pays you an income for the remainder of your life. Our estimate is based on the recent price of an inflation-linked guaranteed annuity without a spouse. Note that the 10X Living Annuity is underwritten by Guardrisk Life Limited (FSP No. To date I am still waiting for my resignation benefit to be paid out. This ensures that when you are more than five years from retirement that you mainly own assets that are expected to deliver high returns - with expected higher volatility of returns - and that the portfolio will gradually be switched into less volatile assets - with expected lower returns - in the last five years before you retire, with the aim of preserving capital. The projections above are based on the default investment strategy called the 10X default glide path, unless you changed the investment portfolio on the output page . The maximum fee in this scale is 0.86% including VAT per annum. Email address: enquiries@gepf.co.za. Our core business, governed … no advisor fee). All GEPF members pay 7.5% of their pensionable salary as their contribution to the Fund. Read a related article: Pension redress payout … GEPF Divorce Claims. If you stopped working in November, then your employer has held up the process… That is not true. The fees used in the projections are inclusive of VAT. Fax Number: 012 326 2507. how much you and/or your employer has contributed to the fund, what deductions came off the contribution (in terms of admin fees and risk premiums), the length of time your money was invested, the investment return earned on your investment, the fees charged by the investment manager that reduce your investment return. “As part of our endeavour to assist, all former employees with such problems are urged to come forward so the department, working with GEPF officials, can devise ways to assist those former employees. Your projected monthly income (if applicable), grows in line with inflation until your money is depleted. ROLE PLAYERS 8.1 Employees, 8.2 Supervisor. The projections are based on the 10X High Equity portfolio, which is designed for investors with an investment term of 5 years and longer. The projections therefore account for historical market fluctuations. Your claim does not expire. Your former employers’ HR department (at each company) should be able to help you identify the responsible unclaimed benefits fund administrator, and give you the contact details. “The administrator of the GEPF, which is the pension fund for government employees, has disclosed it has over R406 million owing to more than 70,000 former employees. In August 2020, the claim forms required to process the clean break divorce settlement were received by GEPF. This, however, doesn’t undo my losses and I will still seek advice on how to deal with the matter,” she said. GEPF will transfer the member’s actuarial interest in the Fund into the new approved fund. Fees are the only difference between the “Industry” and 10X projections. The number of years that your projected income is able to keep pace with inflation without exceeding the regulatory cap of 17.5% is displayed on the outputs. Note that the clock only starts once the administrator has received your last contribution or your instruction form, whichever is the later. The projections do not account for tax in any way. Department to speed up pension payouts. The projected income in the first year will be equal to your desired income provided your annual income is between the regulatory limits of 2.5% and 17.5% of your investment value. Durban - The KwaZulu-Natal Education Department continues to be inundated with calls from employees complaining about the delay and sometimes non-payment of pension claims, and is now trying to speed up the process. He reckons that the government should have informed overseas former employees of the process too, but the PSCBC says although the PDP was extensively advertised locally, they did not promote the applications in foreign countries. The early retirement process is set to end on September 30 this year, but we are concerned that with so many tiers of responsibility the process will take longer than the government expects. Epic miss – Part 1: What annuity income will your savings buy? 10X Investments is a licensed Financial Services Provider #28250 and S13B Funds Administrator #24/444. Masuku admitted they had been inundated with calls from employees complaining about delays and sometimes non-payment of their pension claims. Past performance does not guarantee nor indicate future results. Over and above this amount, the member’s employer contributes 13% of the member’s pensionable salary, unless they are a member of the South African National Defence Force or the intelligence communities. The information on our website does not constitute advice as defined by the FAIS Act. She said she last spoke to the fund employee on Monday. The INVESTMENT MANAGER invests the money in shares, bonds and cash on your behalf. To date I am still waiting for my resignation benefit to be paid out. The fees used in the projections are inclusive of VAT. Email address: enquiries@gepf.co.za. The GEPF administers pensions for government employees nationally and operates independently of government departments. The investment with 10X assumes a total fee of 0.57% including VAT per annum and that the client comes directly to 10X (i.e. You know need to find out which fund administrator looks after the unclaimed benefits fund, and then comply with the claims process they have set down. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. But your former employer is bound by the fund rules to submit the completed claim forms to the fund administrator. Morningstar’s Global Fund Investor Experience 2015 study shows that the average total expense ratio is 1.63% pa (which includes investment and performance fees), with the cost of advice and an administration platform adding an additional 1% to 1.5% pa. She resigned in January and served her notice in February after she was declared additional to the school’s requirements. All rights reserved, Please visit the official Government information portal for Coronavirus by clicking HERE. After the report was published, more teachers called in saying they were experiencing similar difficulties in accessing or having their pension claims processed. This social media page was primarily created to give GEPF members advice, support and informed regarding administrative matters. Xpression Assist specializes in GEPF Divorce Claims. Although our projections take account of the historical returns earned in the South African and International markets, future market returns are uncertain. Only those who contributed to the pension fund qualified for a pension payout. The investment referred to as “Industry” is assumed to charge total fees of 3% including VAT per annum. The clean-break principle allows a non-member former spouse to access on divorce an agreed share of the member spouse's retirement savings. Mkhize-Mazibuko, 55, who resigned from Othweba Primary, near Pinetown, said she had lost R1.47 million in at least two of her four life covers after she failed to pay her premiums for four months. These returns are based on the portfolio you selected (defaulted to 10X High Equity if your term exceeds 5 year). “We request them to submit their details to the human resources components in all 12 district offices and the department’s human resources management at its head office in Pietermaritzburg. Everytime i phone these call centre people have a different progress report to give me. Children of GEPF members are the biggest winners in the improvement to benefits. Journalist Alida de Beer | Monday, ... (GEPF) with gratuities only, will receive a lump sum benefit. free to phone GEPF’s toll free Call Centre on 0800 117 669. Who we are The Government Employees’ Pension Fund is a defined benefit fund with over 1.2 million active members and more than 375 000 pensioners and beneficiaries. How to Avoid Delays in Your GEPF Payout When You Resign or Retire By Inkunzi Wealth Group 13th Sep 2019 No Comments The time it takes to get a payout from a retirement fund or for a claim to be … Durban - The KwaZulu-Natal Education Department continues to be inundated with calls from employees complaining about the delay and … * If you joined the GEPF before 1 March 1998, a portion of any cash withdrawal you make may be tax-exempt as the benefits of the GEPF were tax free before that date. They will then counter-sign and forward it to the fund administrator for processing. Click here for a list of banking details validation reject reasons. The portfolio may be highly volatile over shorter periods. Former spouses (the non-member) of members contributing to the GEPF can now claim their share of the fund as stipulated in their divorce order and don’t have to wait until retirement, resignation or death. Your projected investment value is shown in real terms (today's money). The tax-free portion applies if you take a cash lump sum directly from the GEPF or if you transferred directly from the GEPF to Allan Gray on or after 1 March 2006. Toll Free Call Centre: 0800 117 669. Death while in service:The benefit paid is based on the member’s period of pensionable service. The projections therefore account for historical market fluctuations. The fees used in the projections are inclusive of VAT. Some employees threaten their employees that they will not receive the company contribution if they resign, or resign within a certain period. [1] The GEP law is a legislative instrument published under Proc 21 in GG 17135 of 19-04-1996 and came into effect on 12 May 1996. Pension redress payout update. Your projected income and investment value are shown in real terms (today's money). A GEPF transfer is when a Government Employees Pension Fund (GEPF) member moves their pension benefit from the GEPF to another retirement fund provider, such as Allan Gray. If you have any questions about your pension benefits, please talk to us. Industry funds may have a longer waiting period, in case you should join another company in the same industry (in which case your claim will not be paid out). Many questions imply that it is the employer who pays you your benefit. If you are over 55 the investment term is assumed to be 20 years. It normally takes between 4 and 12 weeks, from the time your fully completed documents are received, or your final contribution (whichever is the later). 10X Investments is a licensed Financial Services Provider #28250 and S13B Funds Administrator #24/444. This issue has been addressed as part of a review of the GEPF benefits along with other important benefit changes, including when a child … Where pensions fall behind inflation, GEPF … The investment with 10X assumes a total fee of 1% including VAT per annum and that the client comes directly to 10X (i.e. Government Employees Pension Fund, Mack Lewele, explains why there is a delay in pension fund pay-outs. Best Investment Practices, Institute of Retirement Funds Africa, PWC Vision to Reality Entrepreneurial Awards, Balanced Fund Manager Of The Year, Batseta, Employee Benefit Administrator Of The Year, Batseta. (Usually within 24 hours - xrrst). Gepf payout process diagracefull to say the least. If the payout takes longer than expected, or indicated by your fund administrator, then you should follow up with the fund administrator to see what is holding up the process, to confirm they have received all the required documents, and that there were no problems with SARS that you need to resolve. Where applicable, the projected monthly income assumes that you purchase an inflation-linked guaranteed annuity at retirement with your projected investment value. The fund administrator does not keep a separate record for employer and employee contributions, there is just one fund credit, which belongs to the employee. My last day in my department was 30 September 2019. © 2021 Independent Online and affiliated companies. The fund administrator will not accept a withdrawal form if this has not been signed by your former employer. Government Employees Pension Fund (GEPF) Major General Dries de Wit, Vice Chairperson, GEPF Board of Trustees, in his brief presentation, informed Members that the GEPF is currently the largest pension fund in Africa. Upon obtaining such details, the department will invite officials from GEPF to district offices to assist those affected employees with the processing of their claims,” Masuku said. gepf no payout 5 months and counting I finished up in the SA NAVY end of October 2014. “The lady was professional, to my surprise, because previously I was treated with no courtesy whenever I called to enquire about the payment. This estimate assumes that you use your entire projected investment value to purchase an annuity at retirement. When you are approved as a member of this group, you are automatically subordinate to the rules of this group. Here we show how to claim your divorce benefit from the GEPF. Morningstar’s Global Fund Investor Experience 2015 study shows that the average total expense ratio is 1.63% pa (which includes investment and performance fees), with the cost of advice and an administration platform adding an additional 1% to 1.5% pa. Good day, I applied for my Divorce Payout, I have been informed that my application is on Payments department and the calculations have been completed only need to be uploaded on the … The investment term and savings period is assumed to be from your current age to age 65, unless you are over 55. One of our retirement experts will get back to you soon. Gepf Payment Process. How to Avoid Delays in Your GEPF Payout When You Resign or Retire By Inkunzi Wealth Group 13th Sep 2019 No Comments The time it takes to get a payout from a retirement fund or for a claim to be processed is a common problem. The claim is processed by the FUND ADMINISTRATOR who has been appointed by the Fund TRUSTEES to keep records for the fund. “As a department our role is to process paperwork for those employees exiting the system and forward that to the GEPF which then processes pension claims until payments are done. This entry was posted in Tax Q&A and tagged Deductions, Retirement. The calculator assumes the you save 10% of the salary you input and that this grows annually in line with inflation. Gepf payout process diagracefull to say the least. free to phone GEPF’s toll free Call Centre on 0800 117 669. Who we are The Government Employees’ Pension Fund is a defined benefit fund with over 1.2 million active members and more than 375 000 … In principle, it is a voluntary... 10X Investments is a licensed Financial Services Provider #28250 and S13B Pension Funds Administrator #24/444.The information on our website does not constitute advice as defined by the FAIS Act. The information on our website does not constitute advice as defined by the FAIS Act. This means that a non member spouse can claim their share of the benefit from the Pension Fund before the member resigns, retires or dies. My last day in my department was 30 September 2019. The investment with 10X is assumed to charge a fee according to the 10X Living Annuity scale. You can claim your retirement fund benefit when you leave your employer (through resignation, dismissal, retrenchment or retirement). GEPF Divorce Benefits - A clear explanation on the GEPF and Divorce: The "clean-break" divorce principle was added to the Pension Fund Act 24 of 1956 on 13 September 2007. What if my payout is delayed? "It would have been a case of impossibility," it said. The GEPF also pays annuities to qualifying surviving spouse(s) or orphan(s) of members who die while in service or after retiring. These investments generate investment income, which is credited to you fund account, net of any investment management fees.