Pension FAQ | Western Cape Education Department

What is the tax on a monthly pension?

Monthly pension is taxed according to the PAYE tax tables of SARS.

In the case where you and your spouse die in an accident. Do they use nomination form?

Each case will be treated on its own merits, based on the members personal circumstances.

The rules of the fund determine that we may overrule a nomination form, based on the above.

If there are children, we may pay the money to the children;

In the absence of children or financial dependents, we may pay the benefit into the estate late account of the deceased.

Is there any correspondence that is shared with the retiree when the lump sum/monthly amount is paid out (with the breakdown of the calculation)? In other words when all GEPF processes are concluded do they receive something in writing?

Yes, the proof of payment/breakdown is sent to the member, based on the preference of communication method on our data base (post/email)

Can members request the calculation of benefit from the GEPF?

All personal correspondence is available on the GEPF app, which can be downloaded from the Google play store or the Apple App Store.

Is there any “salary advice” type doc that is sent through every month?

This can be requested from the fund via email, call centre or walk in centre;

The pay-slip may be downloaded from the GEPF app.

Do retirees benefit from annual increases?

Yes, increases takes place in April every year.

I need to get information about pension for a disabled child. Does a disabled child receive pension if the member retired but hasn’t died or, does the child only receive a pension if the member has died. How is the formula calculated?

Child pension is only payable when the member/pensioner dies.

Does the life partner qualify for the 50% pension after the death of her/his life partner who was employed by government?

The partner qualifies for the percentage the member had chosen when s/he exited.

If you resign at 65... Can you still get the GEMS subsidy?

One cannot resign at 65. One has to retire, hence you will retain your medical aid.

How do we go about buying back service on a monthly basis? I was told by GEPF that it has to be a lump sum payment.

You can apply to GEPF to buy back pension. Once you've filled in the application, GEPF will send you a quotation, if you are satisfied with the quotation you can accept it, if not, you are not obligated to continue. Based on the number of years of service left, together with the monthly repayment amounts, the GEPF will determine whether you can pay it back monthly. The remaining amount upon your exit, will be deducted from your lump sum payout.

Please explain how the child pension works.

Please use the links provided to find out more about child pension:

https://www.gepf.co.za/child-pension/

https://www.gepf.co.za/wp-content/uploads/2021/03/Child-Pension.pdf

Is there a limit to the amount of pensionable years you can buy?

Pension can be bought back up to your 18th birthday. In other words, if you started working and contributing to the pension fund from the age of 21, you can only buy back 3 years to age 18.

I worked for the department on contract for 9 consecutive years, was made permanent in the 10th year; to date I count 13 years being permanent. Is there a way that I can be compensated for the 9 years with no pension?

No. You can buy back pension.

Can you still take early retirement at 55?

Yes.

How will retirement affect me with less than 10 years' service.

You won't qualify for a monthly pension and you will not qualify for medical aid in your retirement unless you have 15 years of service in the public service.

What is the benefit of buying back years of service?

You increase the number of years of pensionable service which will increase your lump sum and monthly amount upon exit.

Do I rather complete beneficiary forms at GEPF office than at WCED? I completed forms twice and letters from GEPF state that I have no nominees.

Please contact the GEPF on 0800 117 669 or via enquiries@gepf.gov.za for assistance.

Alternatively download the GEPF App and complete the nominations of your beneficiaries via the App.

What happens with my capped leave? What is the maximum amount of days paid out for capped leave?

The capped leave is audited, and all capped leave credits you still have available is paid out to the client upon retirement or death (there is no maximum or minimum).

Should you decide to resign you will forfeit your capped credits.

How would it affect my pension if I have been in an acting post for almost two years?

It won't affect your pension because it isn't a pensionable allowance.

What happens to Grade R teachers who were just absorbed but have been working for 20 years? Can they qualify for a medical aid subsidy?

To qualify for medical aid, you need to have at least 15 years of government service and belong to a medical aid for at least 12 months prior to retirement.

Staff appointed by SBGs do not qualify.

GEPF says submit exit docs 6 months prior but WCED says 3 months prior.

Due to internal WCED processes, it is preferable to submit the forms 3 months before the time to ensure that the forms are not outdated when submitted to the GEPF. Outdated forms will result in the GEPF rejecting the forms.

If I work at a district office, how and to whom should my documentation be submitted?

After your application has been approved by your manager, you may forward your documents via the email below. It will be routed to the relevant team in Head Office.

Call Centre no. 0861 819 919

Email: WCED.CallCentre@westerncape.gov.za

Is there a possibility of early retirement at 55 years with no penalties from treasury? Will the WCED also qualify for this possibility?

We can only confirm that if we receive a directive from the Department of Public Service & Administration (DPSA). We have not received such a directive yet.

Once we submit our documents to WCED, will we be allocated an HRP from Service Benefits for support and will the HRP communicate progress and status of application to us. Or, will we need to enquire weekly as to success of the application?

The team responsible for your district will be in communication with you during the process until the application is submitted to GEPF. At this stage, you may enquire with the GEPF on their toll free number 0800 117 669.

I want to retire on 31 March 2024 - I turn 60 in March. Can I send my documents on 1 December?

Yes, the documents must not be older than 6 months and therefore it may be submitted to the WCED’s walk-in-centre where an agent will take receipt of the documents.

Can my medical aid payments be covered while I wait for my pension? How can this be done and for how long?

Kindly peruse the three payment options available for retired members while awaiting GEPF subsidy approval.

Member should send an agreement letter to GEMS regarding this arrangement advising of best suitable payment choice.

Option 1

Member to pay total contributions including the department share until subsidy approval. If s/he qualifies for department subsidy.

Option 2

Member can pay her/his share only every month until subsidy approval if they qualify for a GEPAA subsidy.

If member does not qualify for subsidy, member will have to pay the total outstanding amount to GEMS.

Option 3

No payment of contributions to be paid to GEMS for three months, then after three months, which will be the first working day of the 4th month, member should pay a three month total contribution to GEMS.

On this 3rd option, the 3 month contribution will be due by member and no further arrangement can be made, so it is imperative that during this process the member also follows up with GEPF to avoid the suspension and thereafter termination of membership due to non-payment. Please note that member will be liable for all medical claims incurred during that period should the membership be terminated and backdated.

Does the member amount increase for retirees? When does this happen?

Contributions increase is due effective 1 January of every year and for pensioners the contribution is calculated based on the lowest income band.

Do I have the same benefits post retirement on my medical aid?

Benefits remain the same based on your chosen medical aid option.

For more information: Post-Retirement Medical Benefit

Are there any additional benefits post retirement?

Not with GEMS.

Does GEMS have F2F engagements with prospective retirees?

Yes, and incorporation with GEPF.

If I join Gems now, how long is the waiting period before a claim can be made and how long does it take to process an application to become a member?

If you are new to GEMS, newly appointed public servant, there will be no waiting periods.

If you are a re-joiner, it might take either 3 months and/or 12 months to claim depending on the nature of your previous termination.

The turnaround time to process an application is 5-7 days.

I received a call from GEMS asking me to fill out the Z583 form without dates so that they can start the process early. Where do I submit that form?

It must be submitted to both GEMS and GEPF, using the following email: enquiries@gems.gov.za.

Is the 75% subsidy only applicable to GEMS? Other Medical Aids?

The 75% is for all pensioners of the GEPF who exited the system with an active medical aid and applied for continued medical subsidy. The only difference is if at retirement the membership from other schemes was terminated, then when reapplying for medical subsidy, the pensioner must belong to GEMS.

I am not with GEMS but with MediHelp. What would be the percentage subsidy for other medical aids?

4/6th of your contributions will be state-subsidized, amount to be determined based on your total monthly contribution. GEMS is up to 75% of your total contributions.

I taught for 15 years, retired and am back now for 10 years. I belonged to a medical aid then and now...will I qualify for a medical aid subsidy once I retire at 60?

Yes, pensioners need 15 years of service in the public service to qualify for medical aid subsidy. The GEPF considers all pensionable service/period that the member has worked, so the 15years does not have to be continuous.

Can I apply for GEMS membership at 60 years of age, having more than 15 years government employment?

Yes, but the member must make sure that the last year of service (12 months) the medical aid is active and uninterrupted for that whole year.

I will retire at 65 after 44 years of service. I have been the main member for Medihelp all these years. Will I be able to move to GEMS after retirement?

Yes, and must have been with the previous medical aid for 12 months and above with no break in between to avoid waiting period, so the move must be immediate.

If I resign at 51 years of age, with uninterrupted service, is there any possibility of me continuing my GEMS membership, or what are my options?

Yes, if you have 15 or more years of government service, and your pension remains with GEPF and not transferred to any other financial institution/investors, you will still receive your medical subsidy.

The housing allowance that is paid into a savings account – how does it work? Are we taxed on the part that is paid out on retirement?

Upon retirement the ILSF is payable if an employee has not bought a house. Employees employed prior to 27 May 2015 who are eligible to receive the Housing Allowance but do not own a house, shall continue to receive R900 per month, subject to the applicable tax deduction. The difference between the total applicable Housing Allowance, being R791.38 as at 01 July 2023, and the R900 shall be diverted to and accumulated in the GEHS ILSF.

Accumulated savings in the GEHS ILSF shall only be accessed for the purposes of:

acquiring home-ownership, or
building a house on land owned by the employee, or
improving a house acquired and owned by the employee.

Accumulated savings shall be held in an interest-bearing facility until such time that the employee is ready to access the funds for the purposes set out above.

Should an employee’s employment in the public service be terminated, the following provision shall apply:

In the event of retirement or medical boarding: the employee shall receive the full value of the accumulated savings if the employee had enrolled with the

In the event of the death of the employee: the full value of accumulated savings shall be paid to the nominated beneficiaries of the deceased employee or estate if enrolled; and
In the event of resignation and/or dismissal: employees who resign or are dismissed shall not be entitled to receive the accumulated savings.
Contract employees who accessed the Housing Allowance as tenants as part of benefits: the employee shall receive the full value of the accumulated savings upon the expiry of the contract, if enrolled with the GEHS.

New employees who entered the public service after the 27 May 2015:

Shall, upon approval of their application, have the full value of the Housing Allowance, diverted
to and accumulated in the GEHS ILSF if they do not own a house but rent the house (i.e. are
tenants) in which they live.

Employees falling in this category shall make an application to receive the Housing Allowance as tenants, where after the whole Housing Allowance shall be diverted to and accumulated in the ILSF, once approved. Tax deduction is deferred until withdrawal of funds, as per a SARS directive.

Search form