Can I Borrow Money From My Pension Fund?

Can I Borrow Money From My Pension Fund?

No, you cannot borrow money from your GEPF pension fund account, as it is against the law for the GEPF to provide loans. The Government Employees Pension Fund (GEPF) does not offer loans or bonuses to its members and pensioners because it operates as a defined benefits fund, not as a financial services provider.

The Fund follows strict rules set out in the Government Employees Pension (GEP) Law, Proclamation 21 of 1996, which are designed to protect and grow members’ and pensioners’ benefits, ensuring the Fund stays sustainable and can meet its obligations.

Your pension fund can only lend you money or provide a loan guarantee if it is for buying, building, or renovating a property that you or your spouse live in.

Why Does GEPF Not offer loans to members?

The GEPF often gets questions from members and pensioners about whether they can get cash loans from the Fund. However, the GEPF does not provide loans because the GEP Law does not allow it. Since the Fund is not a registered Financial Service Provider, offering loans would be against the law.

Benefits GEPF Offers To Members

The GEPF provides:

• Benefits for normal, early, late retirement and ill health retirement
• Benefits for members affected by retrenchment/ restructuring
• Funeral benefits
• Child’s pension
• Spouse pension

Required Documents to Claim GEPF Pension Funds

The following documents are required to complete the claim process for retirement funds from GEPF;

• ID: Certified copy of bar-coded ID or both sides of ID card. For non-citizens, a certified copy of a valid passport.
• Marriage Documents: Marriage certificate (legal, traditional, or religious), lobola letters, or life partner application. Divorce decree and settlement order if divorced.
• Children’s Birth Certificates: Unabridged birth certificates showing both parents’ names or adoption orders.
• Bank Details: Bank form in your name. For minors, the guardian’s bank details, proof of guardianship, and a certified copy of the guardian’s ID. Recent bank statement recommended.
• Tax Number: Proof of active tax number.
• Medical Benefits: Application form and proof of 12-month medical aid membership for continued benefits.
• Retirement: Personal particulars form with dependents, retirement benefit choice form, and spouse benefit quote if needed.
• Resignation: Choice form to transfer benefits or have them paid to your bank account. Consulting a financial advisor is recommended.

How to Claim GEPF Pension Funds

To claim from your savings pot, download the app from your device’s app store and follow these steps:

For Existing Self-Service Users:

• Open the GEPF Self-Service App or visit the website.
• Log in with your username and password.
• To submit a new claim, review past claims, or track a current claim, click on the “Claims” button.
• Select “Submit a Claim” to initiate a new claim.
• You will be presented with the rules related to the two-pot system.
• The available withdrawal amount from your savings pot will be displayed. Accept the terms and conditions to proceed.
• Use the “Withdrawal Calculator” to see how withdrawing funds may impact your years of service.
• Click the “Email” icon to request a withdrawal quote to be sent to your email.
• Confirm your banking details by clicking the confirmation button and accepting the terms and conditions.
• Verify your income tax number, update it if necessary, and accept the terms and conditions to proceed.
• Click “Continue” to submit your claim.
• Payment will be processed within 60 working days after claim submission.

For New Self-Service Users:

• Download the GEPF Self-Service App from your app store.
• Register your profile on the app, providing accurate personal details, including your cell phone number and email address.
• You will receive a One-Time Password (OTP) and a temporary password via SMS or email.
• Log in using the temporary password and then change it to a password of your choice.
• Click the “Claims” button to submit a claim, view historical claims, or track a current claim.
• Follow the process from Step 5 of the Two-Pot Withdrawal Process for existing self-service users.

Contact GEPF

• Toll-free number: 0800 117 669
• Fax: 012 326 2507
• Email: enquiries@gepf.co.za

Postal Address: GEPF

• Private Bag X63,
• Pretoria,
• 0001

For more information visit the official website of the Government Employees Pension Fund. I hope the provided information is helpful, share your thoughts below in the comment section.