GEPF Company Information - Fund Benefits

All government employees are required to become members of the GEPF, except where membership is excluded according to the provisions of the Government Employees Pension (GEP) Law and Rules. Members are eligible for benefits provided for in the Rules. Amongst others, benefits are paid on retirement, resignation, ill health, death or discharge.

Retirement Benefits

• Normal retirement
  The normal retirement age for members of the Fund is 60, unless the member’s employment contract or law governing the employment stipulates otherwise. Normal retirees with less than ten years pensionable service receive a gratuity (lump sum cash payment) equal to the member’s actuarial interest in the Fund. Actuarial interest represents the value of accrued benefits in the Fund. For retirees with ten or more years of pensionable service, a gratuity and a monthly pension (annuity) are payable.
• Early retirement
  Under certain circumstances members may retire early, before their normal retirement age. An early retiree with less than ten years pensionable service receives a gratuity equal to the retiree’s actuarial interest in the Fund. For early retirees with ten years or more pensionable service, annuities and gratuities are calculated according to the same formula used for normal retirement, with a reduction of a third of one percent for each month between the dates of early retirement and normal retirement.
• Ill health and other retirements (discharges)
  Members may be discharged at any age in the event of the following:
  
• medical reasons
• the abolition, reduction, reorganisation or restructuring of the member’s post
• to promote the efficiency of the department
• appointment to another post by the President/Premier, or
• injury on duty (in which case compensation may be payable by the Government).
  Enhanced benefits are payable as a result of discharge due to any of the above reasons. Members with less than ten years pensionable service are paid an increased gratuity only. Members with more than ten years of pensionable service are paid a gratuity and annuity calculated as a percentage of the member’s final salary and an increased period of pensionable service. Members with more than ten years of pensionable service are also paid an annual supplementary amount.
   
• Late retirement
  A member may retire after the normal retirement age with the approval of the employer, as governed by the Conditions of Employment of the respective member.
• Payment of gratuity to beneficiaries
  The Fund provides that a member may, on the prescribed form and subject to the prescribed conditions, notify the Board of his or her wish that the gratuity accrued on the death of a member be divided amongst such beneficiaries in the proportion mentioned in that form.

Death Benefits

• Death while in service
  On the death of a member a benefit, calculated in accordance with the Rules and based on the period of service of the member, becomes payable to the surviving spouse, the beneficiaries of the member or to the estate if there are no beneficiaries.
• Death after becoming a pensioner
  Retirement or discharge annuities are guaranteed for five years after a member’s exit. If death occurs within this period, the member’s beneficiaries receive the balance of the five-year annuity payments, excluding the annual supplement, in a cash lump sum. The gratuity is paid to beneficiaries or to the estate if there is no beneficiary.
  A spouse is entitled to a percentage of the annuity paid to the member at date of death. A spouse will receive an annuity equal to 50% or 75% of the annuity paid to the pensioner before date of death, depending on the option chosen at the time of a member’s retirement.
  This option is only available to pensioners who retired on or after 1 December 2002 and who are entitled to an annuity.
• Spouse's annuity
  A spouse’s annuity is payable to an eligible spouse as defined, including an eligible life partner. The annuity is paid if a pensioner (retiree) dies, or a member dies while in service and the full potential service period – pensionable service years plus unexpired years for normal retirement (known as an unexpired period of service) – is at least ten years.
  Since 1 December 2002 retirees have had the option of increasing their spouses’ annuity entitlement from 50% to 75% by reducing their own gratuity or annuity.
  The benefit payable applies only to a spouse as defined and not to other beneficiaries that may have been nominated on the member’s nomination of beneficiaries form. In the case of members with more than one eligible spouse, the spouse's annuity is shared equally among the surviving spouses. A spouse's annuity is not affected by remarriage.
• Orphan's annuity
  The GEPF provides annuities for eligible orphans of members who became pensioners on or after 1 December 2002 and for members in service at their time of death whose full potential service period – unexpired period of service – is at least ten years. Should such members or pensioners pre-decease their spouses, orphan’s annuities will be payable on the death of spouses leaving eligible orphans.

Resignation Benefits
A gratuity (lump sum), determined by a prescribed formula, is payable if a member resigns or is discharged due to misconduct or an illness or injury caused by the member’s own doing.

Alternatively, upon resignation or discharge, members may choose to transfer their benefits to an approved retirement fund. In this case, the GEPF transfers the actuarial interest to the approved retirement fund.

Funeral Benefits
The Fund provides for funeral benefits on the death of members and pensioners whose pension commenced on or after 1 December 2002, and on the death of spouses and eligible children of members and pensioners whose pension commenced after 1 December 2002.

Unclaimed Benefits
There are instances when benefits due for payment are not claimed by the beneficiaries. If unclaimed for a period of three years, such benefits are written back to revenue, but, if the beneficiaries subsequently claim these benefits, the benefits are paid to members on request as per approved policy.

Additional Benefits
The Fund provides severance package benefits to members whose services are terminated as a result of a severance package.

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