How To Calculate GEPF Pension

How To Calculate GEPF Pension

The GEPF(Government Employee Pension Fund) explains the benefits pension scheme that comes out with retirement, disability, and death benefits to government employees in South Africa. Being conscious of how to calculate the GEPF Pension is very vital for ensuring your insurance in retirement. The calculation involves several factors which include your years of service, final average remuneration, and specific benefits formula originated by the Government Employee Pension Fund(GEPF).

Generally, the pension amount is acquired from the formula that considers your pensionable remuneration at retirement and the number of years you’ve contributed to the fund. This write-up will thread you through the key components and formulas of how to calculate your GEPF.

ALSO READ: How long does it take to get your money from GEPF?

Steps On How To Calculate Your GEPF Pension

Below are the steps on how to calculate your pension

• Determine Your Final Remuneration: The GEPF is based on your final remuneration which refers to your pensionable salary. It is the average salary earned in the last twenty-four months before retirement.
• Calculate Your Years Of Pensionable Service: This refers to the number of years you have been contributing to GEPF it is called the pensionable service. Each year you work as a contributing member of the GEPF adds up to this total
• Use the GEPF Formulae: For formulae for calculating the monthly pension are based on the Gratuity factor and a pension factor which is the final salary multiplied by years of service multiplied by 1.5 all divided by 100
• Consult Your GEPF Statement: By and by confirm the calculated pension against your GEPF benefit statement

How The Two-Pot Retirement System Work

The two-pot system offers members access to some of their savings for immediate attention, whilst protecting the steady and reliable income after retirement. It is a method that carefully balances the need for long-term retirement security with the means to meet immediate financial challenges.

Conclusion

Calculating your GEPF pension is important in planning for your retirement as it provides you with a clear thought of what you are expecting during your time of retirement or years of service in the public sector. Visit the official website of GEPF for more updates.