Do I Lose Benefits If I Resign?

Do I Lose Benefits If I Resign?

When you resign from your job or are let go due to misconduct or an illness you caused yourself, you may be eligible for a resignation benefit. Your employer must provide the necessary documentation for this.

The resignation benefit is a one-time payment calculated based on a specific formula that takes into account your final salary and years of service. This applies to individuals who resign or are discharged under those circumstances.

If you qualify, you have two options: you can receive a gratuity, which is a lump sum cash payment, or you can transfer your benefits to an approved retirement fund. If you choose the transfer option, the Government Employees Pension Fund (GEPF) will pay your actuarial interest to the new fund.

It is important to note that the amount transferred to your retirement fund is not taxed at that time; taxes are only deducted when you retire or take a cash withdrawal from the new fund.

Benefits Of Resignation

When a member resigns or is discharged from government service, they receive a resignation benefit. The Government Employees Pension Fund (GEPF) offers two options for this benefit: you can either have it paid as a cash lump sum directly into your bank account or transferred to an approved pension preservation fund.

This gives members the flexibility to choose between immediate access to their funds or preserving them for future retirement. In South Africa, many people prefer the transfer option to take advantage of tax benefits and secure their long-term financial future.

Click Here for the GEPF resignation benefit Form.

How To Claim Money From GEPF

Follow the steps below to claim your benefits from GEPF;

SELF-SERVICE ACTIVE USERS

Open the Self-Service App or visit the website.
Enter your username and password.
To submit a new claim, review past claims, or track your current claim, click on the “Claims” button.
Click on “Submit a Claim” to start a new claim.
After selecting “Submit a Claim,” you will see the rules related to the two-pot system.
You will be shown the amount available for withdrawal from your savings pot. To proceed, you must accept the terms and conditions.
Use the “Withdrawal Calculator” to see how a withdrawal will affect your years of service.
Click the “email icon” to request a withdrawal quote to be sent to your email.
Confirm the accuracy of your banking details by clicking the confirmation button. You must accept the terms and conditions to continue.
Confirm your income tax number. If it’s incorrect, you can update it before submitting it. You must also accept the terms and conditions to proceed.
Click the “Continue” button to submit your claim.
Payment will be processed within 60 working days after your claim is submitted.

NEW SELF-SERVICE USERS

Download the GEPF Self-Service App from the appropriate app store for your device.
Register your profile on the app, ensuring you provide up-to-date personal information, including your cell phone number and email address.
You will receive an OTP (One-Time Password) and a temporary password via SMS or email.
Use the temporary password to log in, then change it to a new password of your choice.
To submit a claim, view historical claims, or track your current claim, click the “Claims” button.
Then follow the subsequent steps starting from Step 5 in the Two-Pot Withdrawal Process for Self-Service Active Users above.

GEPF CONTACT DETAILS

Toll-free number: 08 00 117 669
Fax: 012 326 2507

enquiries@gepf.co.za

Postal Address
GEPF Private Bag X63,
Pretoria,
0001

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

Bernice Asante