How Do I Access My Pension Funds?
How Do I Access My Pension Funds?
Pension funds are monies set aside by employers and individuals to provide future retirement support for employees. It is a type of investment plan where funds are taken in the form of contribution and invested for a while during the time they are working to provide financial support in the form of income after they have retired from their work.
This money cannot be accessed before you retire. It can neither be accessed nor withdrawn while you are still working. It is preserved to be paid out as income after you have retired from work.
These pension funds are managed by financial institutions and government bodies in the country. These pension funds are contributed as a percentage of the employees salary. After retirements, employees receive monthly or quarterly payments from the pension fund.
How To Access Your Pension Fund
You can not access your pension fund if you change jobs or resign. It must be saved until you are ready to retire. When you retire, you can either take the money as a lump sum or move it to your retirement fund. The pension fund can be redrawn in portions by making the first cash redraw for the retirement savings pot. You can withdraw the funds that have been transferred from the savings pot at lower tax rates when you retire.
Types Of GEPF Pensioners
There are more the 34,000 pensioner who are ordinary individuals who receive regular monthly pension benefits as well as those receiving special pensions, such as medical, disability, or military pensions. Below are some types of pensioners;
- Ordinary Pensioners:
An ordinary pensioner is a retired government employee who contributed to the GEPF throughout their career to save for retirement. In return, they are assured a pension and other benefits after they retire. If the pensioner passes away, their beneficiaries are also entitled to specific benefits.
- Medical Pensioners:
These funds are provided to government employees who retire due to medical reasons or an injury sustained while on duty.
- Military Pensioner:
These pensions are for members of the South African National Defence Force who are injured or disabled during military service. The benefits depend on the severity of the disability. If it’s less than 20 per cent, they get a one-time cash payment. If it’s more than 20 per cent, they receive a monthly pension.
GEPF Two-Pot Retirement System
The two-pot pensioner’s system balances the need for immediate access to retirement funds to preserve money for future support. Pensioners will be able to access a small portion of their pension savings before retirement without having to resign from their jobs.
How To Claim Your Pension Fund
The process for GEPF members to make claims will be shared once the rule changes have been approved in line with the new legislation. After the rules are finalized, GEPF will establish the steps for members to follow.
Members will be informed about how to begin their withdrawal and what supporting documents will be required to complete the process.
Contact GEPF
GEPF Administration Office
- Building 2A, Trevenna Campus
- Corner Meintjies and Francis Baard Street
- Sunnyside, Pretoria
- Tel: +27 80 011 7669
- Fax: +27 12 326 2507
Pension funds are managed by financial institutions and government bodies therefore process of accessing your pension fund may vary. However, These funds ensure that you are secured for the future. Visit the official website of GEPF for more information. I hope the provided information is helpful, share your thoughts below in the comment section.
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