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Resigning from the public service

Benefits on resignation

When an member resigns or is discharged from government service, he or she receives a resignation benefit.

GEPF offers two options for the payment of the resignation benefit:

  • Have it paid into a bank account as a cash lump sum; or
  • Transfer it to an approved pension preservation fund.

Option 1: Have the cash resignation benefit paid into a bank account

If the member chooses this option, a cash lump sum (gratuity) will be paid into his or her bank account. Please note that this money will be taxed before it is paid.

How to apply for the cash resignation benefit:

The Human Resources department needs to submit the following documents:

  • A certified copy of the member's bar-coded ID or valid passport. (The copy should not be older than six months.)
  • A correctly completed Personal Details form (the Z864 form).
  • Correctly completed Banking Details form (the Z894 form).
  • A correctly completed Resignation Choice form (only on resignation; not necessary on discharge).
  • If the member is married, a certified copy of the marriage certificate.
  • If the member is divorced, the divorce order and settlement agreement. (If the settlement agreement says that some of the pension money must be paid to the ex-spouse, we also need a certified copy of his or her bar-coded ID and a Banking Details form.)
  • If the member has children, certified copies of their birth certificates.

Next, the Human Resources department needs to complete a Withdrawal from Fund Application form (the Z102 form) and submit this to GEPF, along with all the other documents supplied.

Option 2: Transfer your resignation benefit to an approved pension preservation fund

One advantage of this option is that tax is not payable on resignation when the amount is transferred straight into an approved pension preservation fund. However, tax is payable if and when the member leaves the new pension preservation fund that he or she has transferred into.

GEPF will transfer the member's actuarial interest in the Fund into the new approved fund. The actuarial interest is the value of his or her “share” in the Fund. This amount is calculated using a set formula specified in GEPF's rules.

Remember, to qualify for the transfer option, the member must choose an approved pension preservation fund. This means a pension preservation fund or retirement annuity, and not a provident fund.

The difference between the two is this:

  • In a pension preservation fund you are forced to leave at least two-thirds of the money you transfer in the new fund until you retire. This means you are still making provision for your own pension, which is in your best interests.
  • In a provident fund, you are allowed to withdraw the full amount before you retire. This could leave you without a pension when you need it one day.

If you have any questions about approved pension funds, or any other aspect of pensions, please come and talk to us. You can either phone GEPF’s toll free Call Centre on 0800 117 669, or visit your nearest GEPF Walk-in Centre.

How to transfer your payout to an approved pension preservation fund

The Human Resources department requires the following documents:

  • Certified copy of the member's bar-coded ID or valid passport. (The copy should not be older than six months.)
  • A correctly completed Transfer Application form (the Z1525 form). The member and a representative of the new pension fund must sign this form.
  • A correctly completed Personal Details form (the Z864 form).
  • A correctly completed Resignation Choice form (only on resignation; not necessary on discharge).
  • If the member is married, a certified copy of the marriage certificate.
  • If the member is divorced, the divorce order and settlement agreement. (If the settlement agreement says that some of the pension money must be paid to the ex-spouse, we also need a certified copy of his or her bar-coded ID and a Banking Details form- form Z894.)
  • If the member has children, certified copies of their birth certificates.

Next, the Human Resources department needs to complete a Withdrawal from Fund Application form (the Z102 form) and submit it to GEPF, along with all the other documents you supplied.

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