GEPF payment process is of concern to all beneficiaries of the fund. Often, most employees approaching retirement cringe at the possibility of experiencing delays between their final pay and receiving their first pension. As such, every public and private sector employee must manage this process to ensure none of their fears materialize. Planning for this while preparing for retirement is essential. You can plan by saving up cash or understanding the GEPF payment process 2022 to manage it well.
Work on Your Documents Six Months Ahead of Your Retirement
Starting the documentation process early, like 6 months before your retirement, will help you avoid delays and challenges when your pension payment is due. South Africa’s government is the country’s largest employer, and GEPF is the biggest pension fund in SA. It has 1.2 million members. Of this number, 450000 are pensioners and beneficiaries. Because of this huge number, it is common to experience issues in the system. Understanding where the issues arise helps you address them effectively.
Typically, most issues occur at the department/employer level. The HR department of your company may make mistakes in the documentation, provide incorrect information about your years of service, or delay submission altogether. Therefore, you should follow up and push your employer to submit the correct information to GEPF.
After filing your documents, you should submit them to your employer on time. You should also follow up with your employer to ensure they have submitted it to GEPF. Most importantly, ensure the email you provided is current and correct. When the responsible body (GPAA) receives your documents from the employer, you will receive communication through email. Similarly, the responsible body will send an email to communicate errors if any arise in the submitted documents. Other than email, you can also receive communication through SMS. Therefore, you must ensure you submit your correct mobile number.
What to Do Six Months Prior to Retirement
- Ensure you do not have an outstanding department debt
- Visit SARs and ensure your details are up to date. Check if you have any debt and clear it or organize to have it cleared before retirement
- Settle your will by updating it and forwarding it to HR for filing your executor information on wp1002
- Get verified copies of your ID, your spouse’s ID, and your children’s ID with bar codes. Likewise, get your marriage certificate that has a bar code.
- Fill in the Z583 (medical scheme membership) form. However, to do this, you must have a 12-month-old membership of the scheme before retirement.
- Check and ensure everything that is needed is available and correct.
GEPF Payment Process
After submitting all your documents, GEPF will verify when you started contributing (date of enrolment). Then, if everything checks out and your total due benefit is calculated, GEPF will send your information to SARS to ascertain your tax deductibles.
SARS will then send tax directives to GEPF, who will forward your payment for bank verification. Your bank will clear you and send a receipt of clearance to GEPF, and your payment will then be assigned to a payment run, which takes place every week on Friday, Wednesday, and Monday.
If you want to know the benefits’ value, you will have to consult your HR. You can also use the GEPF calculator to know the amount you’ll receive in benefits.
Death After Retirement
In the event a member passes away within five years after retirement, their beneficiaries will get the balance annuity equivalent to the total amount due after the five years. The amount will be paid in a lump sum to your dependants/nominees.
In addition to this lump sum payment, your spouse will be paid a monthly annuity or spouse’s pension beginning the following month after your death. The amount payable to your spouse will be equivalent to 75% or 50% of the amount you were receiving as a pension at the time of your demise. The exact percentage to be paid will depend on the option you selected at the time of retirement.
If you pass on five years after retirement, your spouse will receive 75% or 50% of the amount you were getting at the time of your demise. If you don’t have a spouse, the amount will not be paid.
How will your Spouse Access the Annuity When You Die?
In the event of death, while receiving pension, your spouse has to apply by filling out the spouse pensions form (for Z143). After that, they have to submit the form to GEPF. The following documents should accompany the submission:
- Form Z894 or banking details form
- Certified copy of ID (certified within the last 6 months)
- Verified copy of marriage certificate
- Certified copy of death certificate
How long does it take Gepf to pay out?
Once you’ve filed and submitted your documents, GEPF will process your claim within 60 days with the exception of death claims involving distribution of benefits.
How do I claim money from Gepf?
In case of unclaimed benefits due to death, there are steps you can take to claim benefits. These are:
For member or spouses:
– Submit form Z894 (complete banking details form)
– Verified copy (six months) of the applicant’s ID
For updated Z864 (personal details form), the beneficiary has to submit:
– Member’s death certificate
– Guardian’s letter in case of minors
– Verified copy of guardian’s ID (six months old or less)
– Filled banking details form Z864
– Certified copy of beneficiary’s ID (six months old or less)
GEPF payment process is easy. Understanding what you need to do to ensure the payment process goes on with minimum glitches is important in ensuring you get your money on time. As such, following up with your HR and submitting proper documentation before retirement will ensure your payment gets to you on time every time it is due.