How Is GEPF Payout Calculated?

How Is GEPF Payout Calculated?

If you are a member of the GEPF and are nearing retirement, you might be wondering how much you will receive once you retire. As a GEPF member, you contribute a percentage of your salary each month to secure your pension benefits. In addition, the government, as your employer, makes monthly contributions on your behalf.

To estimate your pension fund, you can consider the total amount you and your employer have contributed, along with any withdrawals made during your time of service. The GEPF uses a straightforward formula to calculate both your lump sum (gratuity) and your monthly pension (annuity). Generally, the longer you have worked as a government employee and contributed to the fund, the higher your payout will be.

It is also important to note that the GEPF pension is guaranteed for 60 months. This means that if you were to pass away within five years of retiring, your beneficiaries would receive the full remaining income until the end of those 60 months.

How Your Retirement Payout is Calculated

When you retire, you will receive a combination of lump sum payments and a monthly pension, much like the retirement benefits you may be familiar with. Here’s how it breaks down:

Lump Sum Payments

You will receive two types of lump sums:

• From the Vested Pot: This is calculated as 6.72% of your final salary multiplied by your Vested Service.
• From the Savings Pot: This is also calculated as 6.72% of your final salary multiplied by your Savings Service.

Monthly Pension

In addition to the lump sums, you will get a monthly pension, which is calculated as follows:

• From the Vested Pot: This amount is determined by taking (1/55) times your final salary times your Vested Service, plus an additional R360 per year.
• From the Retirement Pot: This is calculated as (1/55) times your final salary times your Retirement Service.

Tax Considerations

Keep in mind that the lump sum payments will be taxed according to the retirement tax tables, while your monthly pension payments will be taxed based on the relevant marginal tax rates.

How To Calculate Your GEPF Pension

Calculate your pension amount using the steps below;

• Double-click the internet icon on the desktop.
• Go on with www.gepf.co.za to access the web calculator.
• Select Benefit Calculations and press enter to continue.
• Press enter to continue.
• Fill in the personal information as required in relevant fields. Enter the admission date, exit reason and exit date.
• Accept the terms and conditions, always with each transaction.
• Enter all salary periods and salary notches for the last 24 months (730 days) or the whole period if shorter
• Select “Calculate benefits”  
• View the benefits and clear the calculator for the next activity.

How Much Do I Contribute To My Pension Fund?

All GEPF members contribute 7.5% of their pensionable salary towards the Fund, while employers contribute 13% of a member’s pensionable salary.

However, for those in service roles like the Police, Defence, and Correctional Services, the employer contribution increases to 16%, and the same 16% contribution applies to members of the Intelligence Services. New members are also permitted to transfer their pension interest from a different pension fund to the GEPF.

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

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.