GEPF benefits: What if member passes in year six?

When a member of the Government Employees Pension Fund (GEPF) passes away in the sixth year after retirement, several benefits come into effect.

This was explained by Finance Minister Enoch Godongwana in a parliamentary response to EFF MP Sixolise Gcilishe last week.

Gcilishe had asked the minister what the GEPF does when a member dies six years after retirement and if there were steps of intervention to cushion the fund from employees who do not qualify for state-subsidised housing and/or bank-approved home loans.

GEPF rules explained

The GEPF must provide a lifetime pension for members, ensuring at least five years of payments.

If a member dies in the sixth year, the surviving spouse will receive a reduced pension (either 50% or 75%) for life.

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“This ensures that the spouse is financially supported even after the member’s passing,” said Godongwana.

Children of the deceased under the age of 22 are eligible for a child pension.

In the case of a disabled child, the child pension is payable for life, offering long-term financial assistance.

Upon a member’s death after retirement, the GEPF offers a funeral benefit of R20,000 to assist with funeral expenses.

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If the member has a surviving spouse, an additional funeral benefit of R20,000 will be payable upon the spouse’s death.

“This funeral benefit is also extended to child pensioners if they pass away before reaching the maximum eligibility age,” explained Godongwana.

“If there is no surviving spouse or eligible children, no additional benefits will be paid from the fund after the funeral benefit for the member.”

State-subsidised housing

Godongwana further explained that the GEPF is governed by the Government Employees Pension Law of 1996. This currently does not provide for pension-backed guarantees for bank-approved home loans.

“State subsidies for housing are part of a public servant’s conditions of service and are not regulated by the GEPF,” he said.

“While the GEPF’s primary responsibility is to ensure the payment of these fundamental benefits, the fund also explores the possibility of offering value-added benefits to its members.

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“However, such benefits are only considered when they are affordable and do not place the fund under financial strain. This careful approach ensures that any additional offerings are sustainable and do not compromise the financial stability of the fund.”

Godongwana said the GEPF does not provide any benefit offerings that are not supported by contributions to “cushion itself.”

“Investments are made strategically to ensure that the liabilities arising from pension benefit obligations are met. This helps maintain the fund’s long-term viability and its ability to fulfil its core mandate.”