GEPFNews

GEPF PENSIONER MEMBER TRUSTEE ELECTIONS 

PRELIMINARY LIST OF CANDIDATES – 16 JANUARY 2018 

Below is a Preliminary List of Candidates for the GEPF Pensioner Member election for objection purposes. Objections must be submitted in writing to the Returning Officer via the following: 

FAX: 086 428 1356 | EMAIL: elections@gepf.co.za 

THE CLOSING DATE FOR OBJECTIONS IS 21:00 ON 19 JANUARY 2018 

1 BUSO LUTHANDO GILBERT 

2 CHABALALA RISIMATI WILLIE 

3 CHUEU MACHA SAMUEL 

4 CURRIE MADELIEF 

5 DAVIS STANLEY 

6 DE VILLIERS DANIEL JOHANNES 

7 DE WIT ANDRIES LOURENS 

8 FERGUSON MALCOLM GRANT 

9 HECKROODT DR ANNETIA SOPHIA 

10 LE ROUX, DR FRANS FRANCOIS 

11 MABOYE MOSIDI MIRRIAM 

12 MACHETHE MPEDI ALPHEUS 

13 MAGAELA MAMPURU ELIAS 

14 MAHOLWANA KUTALA EMELINE 

15 MBOKAZI SIMON ZWELIBANZI 

16 MENONG MORAOLE ISRAEL 

17 MONTJANE LESIBA DAVID 

18 MOTIANG MMUTLE JOHANNES 

19 MQAMKANA SAMSON MPHAKANYANA 

20 MUNASUR AMICHAND 

21 NAICKER NIRANJANI 

22 NEL FREDERICK 

23 NGOETJANA VINCENT MANARE 

24 ROJI OLYMPIA NOKWANDA 

25 ROMIJN GYSBERTUS HENDRIK ERNEST 

26 SAMBO ALBERT VIKIMPI 

27 SEABI MAUDU JOHANNES 

28 SERFONTEIN GIDEON JOHANNES 

29 SHABANGU, BRIG HARRY 

30 SIFUNDZA MHLABA STEVE 

31 STRAUSS HENDRIK HERMIAS 

32 THOMPSON ISA 

33 VAN EYK MULDER 

34 WATSON ESTHER BARBARA 

35 WIID ANTON JOHANNES

Government Employees Pension Fund (GEPF) has announced an annual pension increase of 5.5% to its pensioners and beneficiaries with effect from 1 April 2018. 

The GEPF has granted this increase to enable pensioners and beneficiaries to keep up with rises in inflation. Inflation over one year until 30 November 2017 was 4.6% thus making the increase granted higher than inflation and higher than the 75% of Consumer Price Index (CPI) provided in terms of GEP Law and Rules. 

An analysis of the assets held by the Fund in relation to the valuation of its liabilities undertaken in 2016 showed that the Fund is 115.8% funded, which means that there are sufficient assets in the Fund to cover its actuarial liabilities in full. However, increases above those provided for in GEP Law and Rules is granted at the discretion of the Board taking the Fund’s investment performance into account. 

All GEPF clients (members, pensioners and beneficiaries) have the responsibility to submit their tax returns to SARS every year during the income tax return season. Pensioners and beneficiaries should obtain the IRP5 from GEPF in order to submit their income tax returns in line with requirements. Active members can obtain these from their employers. 

Please note if the source of income is only from GEPF (no other income sources and no other pension from GEPF (e.g. husband or wife pension in addition to the pensioner’s pension) and the pension is R350 000 or below, and the GEPF deducted the correct tax and no deductions or medical tax credit rebate that the pensioner wants to claim, the pensioner is not required to submit an income tax return. 

Take note: 

Receiving income from more than one income source 

If a pensioner or beneficiary is receiving income from more than one source and each pays money to SARS on your behalf for tax, you might be paying less tax than you need to because the combined income may put you into a higher tax bracket. This means you will have to pay in more at the end of the tax year when SARS gives you an assessment after you submit your income tax return. You can however request the GEPF in writing to deduct additional tax to make provision for an extra deduction paid to SARS. This could prevent pensioners from paying higher arrears to SARS upon tax assessment. Additional tax /voluntary tax deductions will be added to the PAYE on the IRP5 certificate at the end of the tax year. 

Garnishee orders (IT88/AA88) from SARS 

SARS legally appoints the employer (GEPF) in terms of Section 179 of the Tax Administration Act ,28 of 2011 to withhold and immediately pay over to SARS monies/tax owed in the form of AA88 and IT88 (garnishee orders) .. These deductions will not be updated or included on the tax certificate issued at the end of the tax year. The request to cancel the garnishee order will only be done upon receipt of a Withdrawal of Third Party Appointment letter from SARS.

The Minister of Finance, Mr Nhlanhla Nene yesterday convened the first sitting of the new Government Employees Pension Fund (GEPF) Board of Trustees following the end of tenure of the previous Board. 

The new Board elected Dr Renosi Mokate as Chairperson and Mr Edward Kekana as Vice Chairperson. Both Trustees have been re-appointed to the GEPF Board. 

The Board of Trustees comprises of 16 members, eight nominated by employer and the other eight nominated by employees. The names of the new Board of Trustees is as follows: 

Employer Representative Trustees 

Department – Name 

National Treasury – Mr Stadi Mngomezulu (Re-appointed) 

Department of Defence – Maj Gen Mulungisa Sitshongaye 

State Security Agency – Ms Jennita Kandailal 

Department of Basic Education – Dr Morgen Pillay (Re-appointed) 

DPSA – Mr Thabo Mokwena 

SAPS – Lt Gen Lineo Ntshiea 

Specialist – Dr Renosi Mokate (Re-appointed) 

Specialist – Mr Themba Gamedze (Re-appointed) 

Employee Representative Trustees 

Department – Name 

NEHAWU – Ms Kgomotso Makhupola (Re–appointed) 

SADTU – Mr Edward Kekana (Re-appointed) 

NATU – Mr Alan Thompson 

PSA – Mr Pierre Snyman (Re-appointed) 

DENOSA – Mr Sibonelo Cele 

POPCRU – Adv Makhubalo Ndaba (Re-appointed) 

Uniformed Services – Col Johan Coetzer (Re-appointed) 

Pensioner – Dr Frans le Roux (Re-appointed) 

The GEPF Chairperson Dr Renosi Mokate welcomed trustees to the GEPF Board and wished them well in their term of office. She thanked the previous Board with whom she had worked with and congratulated them on their achievements over the last four years. GEPF Principal Executive Officer (PEO) Abel Sithole said, “The staff of the GEPF and I welcome the new Trustees to their positions and look forward to their contribution and guidance in the services of members, pensioners and beneficiaries”.

Dear GEPF Pensioner/Beneficiary 

The Government Pensions Administration Agency (GPAA) has been made aware that some pensioners/beneficiaries may have not yet received their IRP5 certificate. The delay is attributable to a backlog at the South African Post Office that was caused by the recent workers strike. The South African Post Office have assured us that they are dealing with the matter. We trust that you will receive your IRP5 in due course. 

If you wish to receive your IRP5 via email or send a query, please contact us on Tax@gpaa.gov.za.or 0800 117 669 

We also wish to take this opportunity to encourage our pensioners and beneficiaries to update their personal details (email, postal address and cellphone numbers) so that all correspondence can reach the correct recipients.

The investment beliefs adopted by the Board of Trustees in March 2017 are stated below: 

2.1. The GEPF’s investment strategy considers the Fund’s risk profile, assets and liabilities. Risk is considered at the asset class, portfolio, and investment levels. 

2.2. Taking well-considered risks is necessary to earn the returns required to meet the Fund’s pension obligations, provided that appropriate risk management processes are followed. 

2.3. The Fund’s strategic asset allocation is the key determinant of portfolio risk and return, and it may be implemented through a combination of active and passive management. 

2.4. The GEPF integrates Environmental, Social and Governance factors into its investment policies as they are material to the long-term sustainability of the Fund. 

2.5. The Fund’s investments should play a developmental role in the South African and broader African economy, and investment decisions may reflect wider stakeholder views. 

2.6. The Fund’s reputation must be supported by robust and rational investment decisions, executed by appropriately skilled and competent investment professionals. 

2.7. Minimising the costs of investing is vital for long term investment success, and management fees should promote an alignment of interests between the Fund and its managers. 

2.8. The Fund’s trustees, administrators and investment managers are accountable for their decisions, and must perform their duties to the highest professional ethical standards. 

2.9. The Fund’s trustees commit to high standards of openness, transparency and appropriate disclosure in line with best practice standards.

31 January 2019 

Dear Members / Pensioners 

As many of you are aware, the Public Investment Corporation Inquiry established by President Mr Cyril Ramaphosa, to probe allegations of impropriety at the Public Investment Corporation (PIC) has begun. 

The Government Employees Pension Fund (GEPF) supports the establishment of the inquiry as we believe it will result in a stronger and more effective Public Investment Corporation. In this regard, the GEPF has written to the PIC Inquiry indicating its willingness to cooperate fully with the inquiry. 

We have also noted with concern the recent suspensions of senior PIC employees as well as the instituting of a forensic investigation by the Board of the PIC into allegations of impropriety against certain directors of the Board. The GEPF views such matters in a very serious light and as such, we have written to the PIC raising our concerns with respect to these matters, including the alleged governance failures at the PIC. 

It is understandable that the revelations at the inquiry and the alleged governance failures are as much a concern to you, our members and pensioners, as it is to us at the GEPF. 

I would like to assure you that the GEPF is in a very sound financial situation and that such issues will not have an impact on your pensions and benefits. Despite the indications of apparent failures and or circumvention of processes with regard to a number of investments, the overall performance of the PIC as an asset manager remains positive and in line with agreed criteria. Nonetheless, the GEPF continues to heighten its monitoring and oversight. The board and management of the GEPF takes its fiduciary duties very seriously and is committed to ensuring that our fund continues to grow. 

Yours sincerely, Abel Sithole Principal Executive Officer GEPF

Government Employees Pension Fund (GEPF) announced today that an annual pension increase of 5.2% to its pensioners with effect from 1 April 2019. 

The GEPF has granted this increase to enable pensioners to keep up with rises in inflation. 

The pension increase is based on the 5.2% inflation rate for the 12 months ending 30 November 2018 released by Statistics South Africa on 12 December 2018 thus making the increase equal to 100% of Consumer Price Index (CPI) and higher than the 75% of Consumer Price Index (CPI) provided in terms of GEP Law and Rules. 

Pensioners whose pensions commenced after 1 April 2018 will receive a proportionate increase based on the number of months they have been in receipt of a pension by 31 March 2019. 

It must be noted that increases such as this increase which is above what is provided for in GEP Law and Rules is granted at the discretion of the Board taking the Fund’s investment performance into account. 

An analysis of the assets held by the Fund in relation to the valuation of its liabilities undertaken in March 2018 showed that the Fund is 108.3% funded, which means that there are sufficient assets in the fund to cover its actuarial liabilities in full. 

This funding level as been achieved despite, amongst others, the: 

• increase in the number of pensioners 

• pension increases 

• increase in resignation pay-outs 

• increase in funeral benefits from R7 500 to R15 000 upon death of a member, pensioner or spouse as well as the funeral benefit increasing from R 3 000 to R 6 000 for eligible children 

• the introduction of the Child Pension which replaced the Orphan’s Pension. 

Benefit improvements over the years together with investment performance, salary and pension increases result in changes in both the minimum and long term funding level. 

Following the gazetting of the Government Employees Pension Law Amendment Bill on 23rd May 2019, the Government Employees Pension Fund (GEPF) will, once the amended rules are implemented, no longer subject a member to a debt model in executing a divorce settlement. Instead the new amendment provides for the reduction of pensionable service of the GEPF member that is equal to the value of the divorce settlement amount paid. 

This amendment to the law removes the pension debt that accrued to the GEPF member when a portion of their pension was paid out by the GEPF as a divorce settlement. This pension debt calculation created the perception that members could find themselves owing money to the GEPF when they retired. 

The amendment now ensures that rather than creating a debt, there will be an adjustment to the member’s pensionable service following the payment of a divorce settlement by the GEPF. This means that the benefit that will be paid to the member upon retirement will now be decreased by reducing the members’ years of pensionable service to take into account the pension interest of the member that was given to the spouse upon divorce. 

Therefore, members will receive their full benefit after the reduced pensionable service has been affected. Members who have more than ten years of pensionable service will still be entitled to a lump sum and a monthly pension upon existing the fund, however at a reduced value. Following this law change, the GEPF is currently developing and gazetting rules that will govern the implementation. It is expected that this process will be finalised in July 2019 and the implementation of the new rules will come into effect as of the 01st August 2019. 

Parallel to the process above, the GEPF will be writing to all affected GEPF members in July 2019 to inform them about how these changes are going to affect their pensions and service period and allow them the opportunity to opt from the old divorce debt model into the service reduction model. The affected members will have up until the 22nd May 2020 to indicate their choice of either remaining with the debt and interest model or move to the service adjustment model approach. Currently affected members who fail to indicate their choice by 22 May 2020 will automatically be converted into the new approach. Post 22 May 2020 all members who have a legal divorce claim against their pension will be subjected to the service reduction model.