GEPF ANNUAL PENSION INCREASE
The Board of Trustees of the Government Employees Pension Fund (GEPF)
has approved a pension increase of 7% with effect from 1 April 2008
for member pensioners. It has also approved a catch-up increase to
protect pensioners against the full effect of inflation.
The principal increase is on a sliding scale and starts at 7% for
pensioners who retired on or before 1 April 2007 while those who
retired after 1 April 2007 will receive a proportionate increase of
0.58% for each month of retirement, between the date of retirement
and 31 March 2008.
The GEPF has 1.1m contributing members, 330 000 pension recipients
and more than R600bn of assets under management.
Section 25 of the Government Employees Pension Law provides the
authorisation by the Board of Trustees for an increase in annuities
on a regular basis, within the financial constraints of the Fund and
acting on the advice of the fund’s actuaries.
Martin Kuscus, chairperson of the GEPF Board of Trustees, said that
the Board made a recommendation to the Minister of Finance at the
end of last year for the annual increase in pensions, as well as an
ad hoc catch-up increase of all pensions to a level of 100% of
annuity at retirement adjusted for full inflationary increases.
The Board’s recommendation, subsequently ratified by the Minister,
is based on an affordability report drawn up by the fund’s benefits
and administration committee task team and the advice of the Fund’s
actuaries.
“The basic increase and this catch-up have been made possible by the
strong performance and sound management of the fund, and maintain
the full real value of all pensions achieved in 2007,” said Kuscus.
“This shows that we have not swayed from our objective: to be the
leading retirement fund in South Africa and on the African
continent, in terms of overall fund governance, service delivery to
members, pensioners and beneficiaries, as well as to be responsible
investors of our assets and fiduciary examples for efficiency and
effectiveness.”
Kuscus said that since a 100% catch-up increase was granted last
year, the new catch-up increase will effectively be the difference
between the basic increase (7%) and the actual CPI increase over the
12 months ending November 2007.
Issued by the Government Employees Pension Fund
For more information please contact:
Mr Phenias Tjie
CEO: Government Employees Pension Fund
Tel: 012-319-1088
Email:pearl.seopela@gepf.co.za
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