GEPF

How Is Your Pension Calculated

Pensions are forms of retirement income that are usually provided by employers to employees. The calculation depends on some elements. Which can vary on the type of pension plan you have enrolled for. The calculation usually considers;

Years of Service: The number of years you have worked for the employer offering the pension
Final Average Salary: The average salary you have earned over a specified period, often the last few years of your career
Pension Multiplier: This is the percentage determined by how much average salary you received for each year of service

READ HERE: How can I check how much money I have in my pension?

Factors To Consider When Calculating Your Pension

Inflation adjustment
Cost of living adjustment
Early retirement reduction
Survivor benefits
Taxes

Percentage Contributed By Employers

The employer currently contributes at a rate of 16% of pensionable salary in respect of service” members and 13% in respect of ”other” members, reflecting the differences in the benefits structure of these two categories of members. All members of the fund contribute at a rate of 7.5% of pensionable salary

Calculation Tools

Pension calculator by Bankrate
Retirement calculator by Kiplinger
Pension estimator by Social Security Administration

Amount Paid When You Retire

Following your retirement, a member receives a combination of a gratuity lump sum and a pension, similar to retirement benefits. This is how the lump sum payment calculated

From the vested pot: 6.72% of the final salary multiplied by the vested service
From the savings pot:6.72% of the final salary multiplied by the savings service

Contact Details Of GEPF

Toll-free number: 08 00 117 669
Fax: 012 326 2507
Email: enquiries@gepf.co.za
Postal Address: GEPF Private Bag X63, Pretoria
0001

If you know how to calculate your pension helps you to prepare for your financial future and security as well as any unforeseen troubles that may occur. Government Employee Pension Fund official website

Linda Nartey