• In the event I am no longer alive, what should my spouse or beneficiaries do to claim the benefits that are payable to them?

    Your family must complete all the necessary forms and attach all the necessary documents relating to the death of a member or pensioner (whichever of these two is applicable).

  • Assuming I retire or resign, what are the tax implications on my benefits? Am I going to receive my whole gratuity or only part thereof?

    Tax is payable on your benefits but when you retire, a maximum of one third of the benefit which is the lump sum, is paid out tax free. Your monthly annuities are taxed as income according to the applicable tax brackets. If you resign and you choose to transfer your pension benefits to a preservation fund of your choice, these benefits will be tax free. Tax will however be payable at the time of withdrawal at that fund.

  • What are the definitions of the words 'annuity' and 'gratuity'?

    An annuity (or monthly pension) is an amount that is paid regularly, ie monthly. A gratuity (or lump sum) is a single once-off payment of a benefit in cash. Benefits from GIPF take the form of an annuity or a gratuity or both.

  • What is my contribution rate and that of my employer?

    1.As an active member of GIPF you contribute 7% of your monthly basic salary and your employer pays an additional 16%. 2.This monthly contribution (7%) is deducted directly from your salary and appears on your pay slip. Please make sure that this is the case.

  • In the event I am no longer alive, how are my benefits distributed and how can I be sure that all my beneficiaries get their rightful share?

    By virtue of YOU being a member of GIPF, we wish to advise that your spouse (where applicable) and ALL your beneficiaries (if any) will be considered for your pension benefits. If your parents are alive, they too will be considered for a portion of the benefits. If you are single, have no children and no nominees, your benefits will be paid to your estate at the Master of the High Court. These benefits will be paid out upon completion of a benefit claim form that must be submitted to the Fund with all the supporting documents attached. The claim forms are available at the Human Resources (HR) Office of your employer.

  • How can I find out how much I have contributed to the Fund and why don't we get annual statements showing how much we have contributed to the Fund?

    GIPF is a defined benefit fund. This means that your benefits are defined in terms of the rules (see the Member Guide booklet). No benefit payable from the Fund is based on the amount of money that you have contributed to the Fund. Benefits are instead based on your final average salary and your years of pensionable service. However, the distribution of benefit statements, showing each individual's benefit entitlements, is planned for the near future. Individuals are also welcome to visit our offices and request a benefit statement on submission of a latest payslip and identity document.

  • Can I borrow money or withdraw funds from the contributions I have made to the Fund to build a house or settle debts?

    No. As pointed above, GIPF does not provide loans to members under any circumstances. You also cannot withdraw money from the Fund while remaining in the service of government.

  • When can I retire?

    This depends on your conditions of service with your employer. Generally, conditions of service state that you may retire without any reduction of benefits at age 60. This is known as the Normal Retirement Age. Your retirement age may be different. You may also retire up to 5 years earlier but your benefits will be reduced (this is known as early retirement).

  • What forms do I need to complete if I want to withdraw from the Fund?

    You should approach your Human Resources Officer (HRO) at your employer and complete a Benefit Claim Form. The HRO will advise you on the supporting documents required. It is advisable to transfer your pension benefits to a preservation fund of your choice so that the funds can be invested for future use.

  • I previously left the service of the government and have now returned; can I buy back pensionable service?

    Yes. If it is less than 36 months since you left GIPF, you can repay the benefit that was paid to you with interest.

  • Can I add more money to the pension fund?

    Not at this stage. You may however make other arrangements such as purchasing a retirement annuity. A financial advisor can advise you on your options.

  • What is the difference between a pension fund and provident fund?

    In a pension fund, at least two thirds of the final benefit must be paid as a pension for the rest of the pensioners’ life. A maximum of one third of the final benefit may be taken as a once-off lump-sum or cash payment. In a provident fund, the full amount of the benefit available at retirement may be taken as a lump-sum cash payment, irrespective of whether this benefit is calculated on a defined benefit or a defined contribution basis. GIPF is a pension fund.

  • Please explain the difference between a defined benefit and defined contribution fund.

    A defined benefit fund is a fund where the benefits are defined in terms of the rules. Benefits are generally guaranteed and are not dependent on the investment returns of the fund or on the level of employer contributions. GIPF is a defined benefit fund. A defined contribution fund is a fund where the benefits are mainly based on the accumulation of contributions plus investment returns. Benefits are dependent on the level of returns therefore the member bears the risk of poor investment returns in such funds.

  • What happens if a member passes on before retirement?

    GIPF will pay out death benefits to all qualifying dependants and beneficiaries. We urge the claimant to visit the former HR office of the deceased member as soon as possible and provide the necessary documents required to avoid delay in finalising the claim. Please take note of the following new requirements: Benefits with regard to minor beneficiaries will only be paid to legal guardians who are in possession of a guardianship certificates We also require full birth certificates for qualifying children of the deceased member Who qualify to be dependants? The law recognizes, among others, the following persons as legal dependants: minor children; adult children who are engaged in education; grandchildren; Biological parents and other factual dependents; Factual dependants are those persons who were as a matter of fact financially dependent on the deceased;

  • What is a beneficiary nomination form?

    A beneficiary nomination form is used to guide Trustees to distribute death benefits in terms of Section 37C of the Pension Funds Act, No. 24 of 1956 to beneficiaries and dependants should a member pass away whilst in service.

  • Whose responsibility is it to ensure that a member is registered with the Fund?

    Firstly, the member should ensure to submit certified copies of his/her national documents to your HR officer; Secondly, the HR Officer should make sure that: The correct amount being 7% of the member’s basic salary is deducted towards pension contribution and paid over to the Fund before the 7th of each month to avoid interest charges. The admission documents with the relevant supporting documents reach the Fund with in the first three months of appointment. Thirdly and upon receipt of the admission documents, the Fund should make sure that you are registered to the Fund and provided with a membership certificate. The member should also make sure that the correct amount is deducted towards his pension are deducted right form appointed permanently and on a monthly basis.

  • What would happen if a member is not registered with the Fund?

    The member will not receive a Membership Certificate confirming him/her membership to the Fund. Neither will he/she receive a Benefit statement that indicates how much he has saved towards his pension. Information can get distorted as time goes by if the member is not registered on time.

  • Benefit statements

    A benefit statement is a document that contains your personal details as held by the Fund. It is also a statement that provides you with an outline / break down of your benefits. Please note that the amounts stated on a benefit statements are estimates only and might change at the actual time of a claim. When a claim is submitted, be it a resignation or retirement, your personal details will be verified to ensure that correct benefits are paid to you. It is therefore critical for you to verify that your personal details on the Benefit Statement are correct. This involves names, date of birth, gender, admission date to the Fund, starting and current salaries. Communicate all inaccurate information to your HR office.

  • If I want to resign, what is expected from me as an employee / member of the Fund?

    Please ensure that your information held by the Fund is accurate as this might delay the claiming process. A member is responsible for the following: Verifying the information on the benefit claim form and also signing it to confirm that all information is correct; Submitting all relevant supporting documents to the HR office; Keeping the bank account active while awaiting retirement / resignation benefits to be finalised; Please also note that if a member has been dismissed from service, he/she also has a right to claim resignation benefits. If any of your personal details have changed, ensure that such changes have been communicated to the Fund on time.

  • When a member is about to retire, what can he/she do to ensure that retirement benefit are paid on time?

    Three months before retirement, please visit the HR office and confirm whether all personal details are on file and accurate. If you have changed your names, date of birth or ID, please obtain a letter from the Ministry of Home Affairs that confirms that your personal details were amended lawfully. This is important as your benefits will not be paid if your details differ from what you have submitted to Fund initially.

  • What is the difference between a disability and ill health benefits?

    If a member has been boarded on disability benefits, such a member will continue to receive 75% of his/her remuneration on a monthly basis. The member will be regarded as an active member and will continue to contribute to the Fund and qualifies for all benefits as in the case of active members. Members who retire on ill health benefits will become pensioners of the Fund. They will receive a lump sum and monthly pension and will not be legible to become active members again.

  • What are the implications of being retrenched from an employer that is a member of GIPF?

    If you have been retrenched by an employer that is a member of GIPF such as NAC or NWR, you become a GIPF pensioner and for that reason you may not become an active member again. You cannot be an active member and a pensioner at the same time.

  • Whose responsibility is it to ensure that a member is registered with the Fund?

    The member, HR Officer and the Fund each play a role. The member should ensure that she/he submits the required certified documents to the HR officer; The HR Officer should make sure that the correct amount is deducted from your salary for pension contribution and that the admission documents reach the Fund well on time. The Fund should make sure that a member is admitted to the Fund and provided with a membership certificate. You as a member should also make sure that pension contributions are deducted from the salary on a monthly basis.

  • Whose responsibility is it to ensure that a member is registered with the Fund?

    The member, HR Officer and the Fund each play a role. The member should ensure that she/he submits the required certified documents to the HR officer; The HR Officer should make sure that: The correct amount is deducted from your salary for pension contribution. The admission documents reach the Fund well on time. The Fund should make sure that a member is admitted to the Fund and provided with a membership certificate. You as a member should also make sure that pension contributions are deducted from the salary on a monthly basis.