Teachers pension (GEPF?)

[koffiejunkie]

Hey foks,

I'm trying to help one of the parental units to pan for lessen the shock of retirement. Said paretenal is a teacher (government school) completely ignorant of their finances, and not particularly cooperative. A search of the house is underway for a statement, but I'm not holding my breath.

I believe the pension fund is GEPF, it's a defined benefit scheme, and I have some questions for those of you are with them and are near or in retirement. My understaning is that there are two options:
a) pay out the whole pot and put it in an RA, and
b) let GEPF take care of you by paying out a defined benefit and paying for your medical aid. This sounds like a sensible option, provided the definied benefit is enough.

I can't find anything relating to what the definied benefit is. The FAQ links to two PDF documents - both dead links:

• Government Employees Pension (GEP) Law and rules
• GEPF Members' Guide

Anyone have copies of these PDFs?

Can anyone help me out with how the benefit is calculated? Years service divided by your contribution times the length of your elbow, or whatever the magic forumla is?

I also understand that with option b), a portion is paid out, and whether it is taxed and by how much, depends on how much of the fund was contributed before 1998. Any insights into how this is calculated?

Happy to talk over PM if you're willing to talk numbers.

Thanks

 

[Marsie27]

This is something the union the teacher belongs to would be able to give advice on. Get him/her to contact the union.

 

[Cage Rattler]

Benefits Calculator - GEPF

www.gepf.gov.za

 

[XPD]

Gepf is guaranteed by the SA government so no chance of it going bust even with the dodgy investments the PIC does on their behalf. Use the calculator to determine payouts at retirement as it depends on tenure etc. The rules allow a lump sum at retirement and a fixed monthly income increasing yearly at the pleasure of the finance minister. Retirees also have an option of a 75% or 50% widows pension (on death of retiree) but the higher the widows pension the lower the monthly pension amount. I didn’t know there was a cash out to RA option but that sounds risky when a defined benefit guarantees the pension and benefits for the Widow

 

[zizo911]

I work for government. They need to contact the GEPF, they will send out a representative who will do calculations based on the individuals profile. They are the best people to contact as they actually have access to all the information and the different scenarios that could occur.

 

[koffiejunkie]

Benefits Calculator - GEPF

www.gepf.gov.za

Thanks this is great. We'll do some experimentation.

I didn’t know there was a cash out to RA option but that sounds risky when a defined benefit guarantees the pension and benefits for the Widow

I don't think it's a cash-out, rather, you can transfer to an R28 compliant annuity. But as I said, the inclusion of medical aid makes GEPF very compelling.

I work for government. They need to contact the GEPF, they will send out a representative who will do calculations based on the individuals profile. They are the best people to contact as they actually have access to all the information and the different scenarios that could occur.

Thanks, I'm pushing for this.