Can I Borrow Money From My Pension Fund GEPF?
Can I Borrow Money From My Pension Fund GEPF?
No. You can not borrow money from your GEPF pension fund account, as it will therefore be against the law to allow loans from the GEPF. The Government Employees Pension Fund (GEPF) does not provide loans or bonuses to its members and pensioners. This is because GEPF operates as a defined benefits fund rather than a financial services provider.
The Fund is governed by specific rules outlined in the Government Employees Pension (GEP) Law, Proclamation 21 of 1996. These rules are designed to protect and grow the benefits of members and pensioners, ensuring that the Fund remains sustainable and meets its obligations.
Can I Borrow Money From My Pension Fund GEPF?
The GEP Law does not allow loans to members since the Fund is not a registered Financial Service Provider. Therefore, it would be illegal for the GEPF to offer loans.
How To Increase Your GEPF Benefits
The GEPF’s Board of Trustees can approve a pension increase based on advice from its actuary, provided that the increase does not negatively affect the Fund’s current or future financial position. Before implementing any increase, the Board must inform the Minister of Finance about the amount of the increase.
Elements of the Pension Increase
The GEPF’s annual pension increase consists of four elements defined in the Board’s approved Pension Increase Policy. While the Board does not always grant all four elements each year, it decides which elements to award based on affordability. Below are the four elements:
- Basic Increase:
This is set at 75% of the year-on-year change in the Consumer Price Index (CPI) for pensioners who retired on or before April 1 of that year. Pensioners who retired after this date will receive a proportional share of this increase based on how long they have been retired.
- Further Inflation-Related Increase:
This is an additional increase that exceeds the 75% of the CPI change and applies to pensioners who retired on or before April 1 of the previous year. Similar to the basic increase, those who retire later receive a proportional share based on their retirement duration.
- Catch-Up Increase:
For pensioners who retired before April 1 of the previous year and whose pensions have fallen below the amount adjusted for full inflation since their retirement, a catch-up increase is provided. This increase is added after the basic and further inflation-related increases and can be up to 100% of the CPI change from the retirement date to November 30 of the previous year, or a lower amount that the Fund can afford.
- Supplementary Increase:
This is an additional increase the Board decides to grant that is not tied to inflation.
Contact GEPF
- Toll-free number: 08 00 117 669
- Fax: 012 326 2507
- enquiries@gepf.co.za
Postal Address
- GEPF Private Bag X63,
- Pretoria,
- 0001
If you are looking forward to borrowing money from GEPF, then it you must consider your decision as GEPF does not offer loans due to its rules. Visit the official website of the Government Employees Pension Fund (GEPF) for more information. We hope the provided information is helpful, share your thoughts below in the comment section.
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