The Government Employee Pension Fund (GEPF) manages pensions and relevant benefits for government employees in South Africa. It doesn’t matter if they’re a permanent employee or contracted for a set period of time.
The current retirement age in South Africa is 60, however, many people choose to work beyond this age. Nevertheless, your pension fund becomes your lifeline as soon as you retire. If you ensure that you have a healthy amount of savings, you can settle into the life you deserve during retirement. Imagine moving to a cosy little beach town, picking up some new hobbies, and resting after years of hard work. The GEPF can make this a reality.
On that note, here are 5 benefits of being a GEPF member:
1. Pension fund savings are unaffected by market changes
The global market can be rather unpredictable, especially during times of crisis. Since the end of February 2020, financial markets have been subject to some of the highest levels of volatility in the past century. Moreover, pension funds are financial investments, which means they can be greatly affected by an unstable economy. However, members of the GEPF don’t have these concerns. An established formula and strategic asset allocation allows the fund to protect your investment.
2. All benefits are guaranteed once you reach retirement
The GEPF is a defined benefit pension fund. This means that all benefits are guaranteed once you reach retirement and they keep up with inflation. The kind of benefits a GEPF member can expect is:
3. Spousal pension
Spousal pension is paid to the spouse of a member who has died. This means that GEPF members can protect the future of both themselves and their life partners. Take into account that the spouse pension is a life-long commitment. This means that if a member remarries, the pension will be split among all spouses.
4. Qualify for death and disability benefits
If a member dies, funeral and life cover amounts are payable to their listed beneficiaries. In addition, if a member becomes disabled while performing their work duties, they are entitled to disability pensions. This enables all relevant parties to keep their life afloat while dealing with these unfortunate events.
5. Employers contribute more to the fund than you do
The best part about the GEPF is that employers pay more to the fund than employees. Your contribution is 7.5% of your pensionable salary and your employers contribution is 13%. This allows you to make the most of your salary while ensuring that a decent amount of savings are invested into the fund.
It won’t hurt to join more than 1.2 million GEPF members who are actively investing in their future. The GEPF is currently the largest pension fund in Africa and members receive several life-changing benefits. If you happen to be eligible, you should consider joining the fund as soon as possible.