Can I Withdraw Money From GEPF?
You can only withdraw money from the Government Employees Pension Fund (GEPF) under specific circumstances. The GEPF does not allow early withdrawals or lump-sum withdrawals like a bank savings account, but you can access your benefits if certain events occur:
GEPF is a retirement scheme introduced by the government of South Africa to take care of the financial status of the aged who have gone to their retirement from the government sectors. Since the scheme focuses on the aged and their retirement plan, members of the GEPF are not allowed to make any early access withdrawals from their pension fund nor allowed to make withdrawals while employed.
However, members or Pensioners can only access funds when they exit the scheme through Retirement, when. they are ill, discharged from office or resigned in line with the rules as stipulated in the GEPF law. GEPF allow its members to make only one taxable withdrawal per year from the savings pot, provided that the balance has reached a minimum threshold of R2,000.
In other serve pensioners effectively, GEPF has introduced the Two-Pot Retirement System. This innovation changes how all future contributions and benefits to retirement funds in South Africa are treated, including the Government Employees Pension Fund. The reason for these changes is to improve retirement outcomes while providing members access to a portion of their retirement savings before retirement.
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What Is GEPF Two-Pot Retirement System
The Two-Pot Retirement System enables members of a retirement fund to access a small portion of their retirement savings before they retire for emergency purposes. The majority of members’ retirement savings will remain “preserved,” until the member retires. The Two-Pot Retirement System is for any South African who has a pension fund, provident fund, retirement annuity, or preservation fund.
How Much Can I Withdraw From My GEPF Account?
GEPF members will be able to access a percentage of their retirement savings when the two-pot retirement system is implemented. The two-pot retirement system will allow GEPF Members to access a portion of their retirement savings.
One-third of retirement funds are preserved in a savings component that can be accessed at any point in time, while the remaining two-thirds are reserved for retirement, ensuring financial security.
GEPF allow its members to make only one taxable withdrawal per year from the savings pot, provided that the balance has reached a minimum threshold of R2,000.
At Which Age Can One Access The GEPF Retirement Fund.
To access your retirement funds, you must be at least 55 years of age
GEPF Two Pot Retirement Implementation Date 2025
The implementation date for the two-pot retirement system in South Africa is 1 September. All retirement contributions after this date will be split, with one-third of contributions going to a savings pot and two-thirds to a retirement pot. Under the two-pot retirement system, you can only withdraw one-third of your retirement component upon retirement. The remaining balance will be distributed as fixed monthly payments.
GEPF Requirement For Money Withdrawal.
The following process is required by a member of GEPF to make a withdrawal from the pension funds.
- Completed form of Withdrawal from Fund Form(Z102).
- Original certified copy of an ID or Passport of the member.
- Completed ACB Bank Particulars Form (Z894)
Certified copies of documentation for proof of Retirement/Discharge:
- Proof of termination of service is required such as a printout of the Service Termination or Service Record from PERSAL stating the Payroll Number.
- For early retirement, a copy of the letter of approval for early retirement or discharge is signed by the Head of an office (Department).
- Discharge due to medical conditions a medical report stating the reason for discharge, applicable section of the act and date of withdrawal.
For service contract(s) expiring: a copy of the service contracts.
How Long Does It Take To Get Your GEPF Withdrawal
Once the GEPF receive your duly completed documents, it will take not more than 60 days( 3 months) to process your claim (The exception to this will be death claims where the distribution of benefits must take place).
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Contact Details Of 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
Upon retirement, your pension income is taxed at PAYE rates, like how your salary was taxed during your working years. Given that most people’s retirement income is lower than their employment income, the tax rate on pensions is generally lower. Visit the official Website Of GEPF for more details.