GEPF

What Is The Lump Sum For GEPF

GEPF(Government Employee Pension Fund) is the largest pension fund in Africa, prepared to provide retirement and other benefits to South African government workers. One of the key components of the retirement packages under the Government Employee Pension Fund(GEPF) is the lump sum benefit.

This lump sum is a notable portion of the overall pension payout, given to members upon their retirement, resignation, or other exits from service. Being conscious of how this lump sum is calculated, when it is paid, and other factors influencing its size is very important when it comes to planning for your future.

Structure of The Lump Sum For GEPF

Beneath is the structure for GEPF

Eligibility: Only qualified members of GEPF who are on retirement, or resigned due to some reasons
Calculation: Based on the service of years and final salary
Taxation: It varies depending on retirement or resignation
Payout Option: Partially or full lump sum( usually for resignation)
Processing Time: Typically it takes a few months to process it

The benefit structure for the payment of benefits upon retirement is determined based on the total pensionable service, without taking into account any service reductions resulting from partial withdrawals. However, the actual calculation of the benefit amount considers the impact of service reduction due to partial withdrawals.

If a member has been part of the Government Employee Pension Fund(GEPF) for ten(10) years or more but, as a result of partial withdrawals, ends up with less than 10 years of pensionable service, employees will still be qualified for the benefits. It means that upon their retirement will still end up taking both lump sum benefits and regular pension.

Payment Dates For GEPF

30 April
31 May
30 June
30 July
31 August
30 September
29 October
30 November
31 December
31 January
28 February
31 March

Do not hesitate to contact the GEPF if you need assistance at (08 011 7669) or visit their official website for more details about the Government Employee Pension Fund(GEPF).

Linda Nartey