How Much Do You Get For Lump Sum?

How Much Do You Get For Lump Sum?

A lump sum is a one-time payment given to a retiree or former employee instead of regular monthly pension payments for life. This means that instead of getting those monthly checks, a person can receive their pension benefits simultaneously. The amount they receive is typically calculated based on the present value of their future pension payments.

The lump sum is a one-time payment given to a GEPF member or their beneficiaries, calculated based on the member’s years of service and contributions to the pension fund. It Is designed to provide immediate financial support when a member leaves their job, whether through retirement, resignation, or other situations.

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 standard retirement age for GEPF members is 60. The benefits a member receives depend on their years of pensionable service. Members with less than 10 years of service receive a once-off cash lump sum, called a gratuity, equivalent to their actuarial interest in the Fund. The Members with 10 or more years of service receive both a gratuity and a monthly pension annuity.

• Early Retirement:

Members may choose to retire before reaching the normal retirement age of 60 under certain conditions. The retirement benefits are calculated similarly to normal retirement, depending on the member’s years of pensionable service. Those with 10 or more years of service receive both annuities and gratuities. However, these benefits are reduced by 0.33% for each month between the date of early retirement and the normal retirement age.

• Ill Health and Other Retirements:

GEPF 
Members retiring due to medical reasons, injury on duty, or because of organisational restructuring receive enhanced benefits. For members with more than 10 years of pensionable service, this includes both annuities and gratuities, as well as an annual supplementary amount. Members with less than 10 years of service receive benefits similar to resignation benefits, ensuring they are not disadvantaged.

How to Claim GEPF Retirement Benefits

GEPF members can easily submit claims for the two-pot system through the self-service app or portal. To claim from your savings pot, download the app from your device’s app store and follow these steps:

For Existing Self-Service Users:

• Open the GEPF Self-Service App or visit the website.
• Log in with your username and password.
• To submit a new claim, review past claims, or track a current claim, click on the “Claims” button.
• Select “Submit a Claim” to initiate a new claim.
• You will be presented with the rules related to the two-pot system.
• The available withdrawal amount from your savings pot will be displayed. Accept the terms and conditions to proceed.
• Use the “Withdrawal Calculator” to see how withdrawing funds may impact your years of service.
• Click the “Email” icon to request a withdrawal quote to be sent to your email.
• Confirm your banking details by clicking the confirmation button and accepting the terms and conditions.
• Verify your income tax number, update it if necessary, and accept the terms and conditions to proceed.
• Click “Continue” to submit your claim.
• Payment will be processed within 60 working days after claim submission.

For New Self-Service Users:

• Download the GEPF Self-Service App from your app store.
• Register your profile on the app, providing accurate personal details, including your cell phone number and email address.
• You will receive a One-Time Password (OTP) and a temporary password via SMS or email.
• Log in using the temporary password and then change it to a password of your choice.
• Click the “Claims” button to submit a claim, view historical claims, or track a current claim.
• Follow the process from Step 5 of the Two-Pot Withdrawal Process for existing self-service users.

Required Documents to Claim GEPF Retirement Funds

The following documents are required to complete the claim process for retirement funds from GEPF;

• ID: Certified copy of bar-coded ID or both sides of ID card. For non-citizens, a certified copy of a valid passport.
• Marriage Documents: Marriage certificate (legal, traditional, or religious), lobola letters, or life partner application. Divorce decree and settlement order if divorced.
• Children’s Birth Certificates: Unabridged birth certificates showing both parents’ names or adoption orders.
• Bank Details: Bank form in your name. For minors, the guardian’s bank details, proof of guardianship, and a certified copy of the guardian’s ID. Recent bank statement recommended.
• Tax Number: Proof of active tax number.
• Medical Benefits: Application form and proof of 12-month medical aid membership for continued benefits.
• Retirement: Personal particulars form with dependents, retirement benefit choice form, and spouse benefit quote if needed.
• Resignation: Choice form to transfer benefits or have them paid to your bank account. Consulting a financial advisor is recommended.

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.