What Is The GEPF Increase For 2025?

What Is The GEPF Increase For 2025?

Do you want to know about the latest update by the Government Employees Pension Fund (GEPF) for 2025? Worry no more as this article will help you to stay updated with current and recent information in 2025.

The Government Employees Pension Fund (GEPF) is a is a prominent pension fund in South Africa, having been established in 1996. As a defined benefit pension fund, it manages pensions and other related benefits for government employees, helping to secure their financial future after retirement. It is the largest pension fund in South Africa and ranks among the largest in Africa and globally

The GEPF provides various benefits to its members, including withdrawal benefits, retirement benefits, ill-health or disability benefits, and death benefits. This structure ensures that members receive adequate financial support based on their salary levels and years of service

Additionally, the fund adjusts pension amounts annually to keep up with inflation, ensuring financial security for members based on their salary levels and years of service.

The GEPF Increase For 2025

The Government Employees Pension Fund (GEPF) has announced an annual pension increase of 5.5% for its pensioners. This increase is in line with the inflation rate of 5.5%, effectively making it equivalent to 100% of the Consumer Price Index (CPI). This adjustment is higher than the usual 75% of CPI outlined in the GEP Law and Rules.

Pensioners who retire before a specified date will receive the full 5.5% increase, while those who retire afterwards will get a proportionate increase based on the number of months they have been receiving their pension. The GEPF has implemented this increase to help pensioners keep pace with rising inflation.

The decision to grant such increases is contingent upon the fund’s affordability at the time, ensuring that these adjustments do not jeopardize the long-term sustainability of the GEPF. The fund aims to maintain its financial health to meet the promised benefits to its members.

Factors Considered For The 2025 Increase

For pension increases, several factors are taken into account, including;

• Investment Returns: The performance of investments over the past year is critically evaluated.
• Inflation Levels: The rate of inflation during the same period is considered.
• Assumptions in Statutory Valuations: The relationship between investment returns, inflation, and the assumptions used in the fund’s statutory valuations are analyzed.
• Impact on Financial Position: The effect of the proposed increase on the fund’s overall financial health is assessed.

The minimum funding level stipulates that the Fund’s assets must cover at least 90% of its liabilities. In simpler terms, this means that the total value of the Fund’s assets should be sufficient to pay for at least 90% of its current and future pension obligations. This rule ensures that the Fund can meet its commitments to pensioners.

As a result, the Fund is only permitted to approve increases in pension payouts that it can financially sustain. This approach helps maintain the long-term viability of the Fund while ensuring that it can honour its promises to its members

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

The GEPF operates under the Government Employees Pension (GEP) Law of 1996, along with its accompanying rules. These regulations, together with the GEPF’s policies on pension increases and funding levels, outline clear guidelines for determining the annual increases provided to pensioners. This framework ensures that the Fund makes informed and sustainable decisions regarding pension adjustments, keeping the financial health of the Fund in mind. 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.