Can I Withdraw My Pension To My Bank Account?

Can I Withdraw My Pension To My Bank Account?

If a member chooses to withdraw from the Savings Pot, they can access up to the amount of the seed capital, provided it is at least R2,000 and can transfer it to their bank account.

The GEPF (Government Employees Pension Fund) doesn’t allow you to withdraw any money from your pension fund while you’re still employed.

However, they do offer some flexibility through the Two-Pot Retirement System. This system lets members access a small part of their retirement savings before they retire, particularly for emergencies. Members can make one taxable withdrawal per year from their savings pot, but only if the balance is at least R2,000.

Pension Amount To Be Paid By GEPF After Retirement

Upon retirement, a member will receive a combination of lump sum gratuities and a monthly pension, similar to the current retirement benefits structure. The lump sum payments are calculated as follows:

• From the Vested Pot: 6.72% of the final salary, multiplied by the number of years of Vested Service.
• From the Savings Pot: 6.72% of the final salary, multiplied by the number of years of Savings Service.

In addition to the lump sum payments, the member will receive a monthly pension, calculated as follows:

• From the Vested Pot: (1/55) of the final salary, multiplied by the Vested Service, plus R360 annually.
• From the Retirement Pot: (1/55) of the final salary, multiplied by the Retirement Service.

It is important to note that lump sum payments will be subject to tax as per the retirement tax tables, while pension payments will be taxed according to the applicable marginal tax rates.

Types Of GEPF Retirement Benefits

The GEPF offers different retirement options, including normal retirement, early retirement, and retirement for medical (ill health) reasons. Members affected by restructuring or reorganisation are also eligible for retirement benefits.

• Normal Retirement:

The usual retirement age for GEPF members is 60. What you receive depends on how many years you have worked. If you have worked less than 10 years, you will get a one-time cash payment called a gratuity, which is based on the value of your contributions to the fund. If you have worked for 10 years or more, you will receive both the gratuity and a monthly pension payment.

• Early Retirement:

You can retire before 60 under certain conditions. Your benefits are calculated in the same way as for normal retirement, depending on how long you’ve worked. If you have worked for 10 or more years, you will get both a monthly pension and a gratuity. However, your benefits will be reduced by 0.33% for each month you retire early, before turning 60.

• Ill Health and Other Retirements:

If you retire because of medical reasons, an injury at work, or organisational changes, you get improved benefits. If you have worked more than 10 years, this includes both a gratuity and a monthly pension, along with an extra annual payment. However, If you have worked less than 10 years, your benefits will be similar to what you would get if you resigned, ensuring you are still taken care of.

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.