Government Employees Pension Law, 1996Schedule 1 : Rules of the Government Employees Pension Fund1. Definitions |
In the rules words that are defined in the Law, but not defined in this rule, shall have the meaning assigned to them by the Law, and, unless the context otherwise indicates, words indicating the singular include the plural and conversely and also, unless the context otherwise indicates, the words hereunder shall have the following meaning—
the Government Employees Pension Law, 1996;
means an amount representing the value of a member's benefits in the Fund based on his or her total pensionable service, or if the context so requires, either of his or her vested service, savings service or retirement service calculated in rule 14.4.2.
Provided further that if the context so requires, actuarial interest may be determined and apportioned to mean the following:
| (a) | Vested actuarial interest is an amount representing the value of a member’s benefits in the Fund based on his or her vested service; |
| (b) | Savings actuarial interest is an amount representing the value of a member’s benefits in the Fund based on his or her savings service; and |
| (c) | Retirement actuarial interest is an amount representing the value of a member’s benefits in the Fund based on his or her retirement service. |
With effect from the vested date, a member’s total actuarial interest in the Fund is the sum of his or her vested, savings and retirement actuarial interests.
[Definition substituted by section 1(a) of Notice No. 5191, GG51202, dated 10 September 2024]
any Fellow of an institute, faculty, society or chapter of actuaries approved by the Minister, appointed as the actuary of the Fund in terms of rule 4.8;
an appropriate written agreement concluded in negotiations between the employer and employee organisations;
a register referred to in section 16(3) of the Transitional Executive Council Act, 1993 (Act No. 151 of 1993);
[Definition inserted by Notice No. 423 of 31 March 2004]
the Department of Correctional Services established in terms of section 2 of the Correctional Services Act, 1959 (Act No. 8 of 1959);
a factor less than 1, determined by subtracting a number calculated in accordance with the undermentioned table from 10 000 and dividing the result by 10 000:
Table
Completed months of pensionable service |
Calculation of number |
0 to 36 |
0 |
37 to 120 |
0 plus 26 for each completed month of such service in excess of 36 months; |
121 to 240 |
2 184 plus 17 for each completed month of such service in excess of 120 months; |
241 to 360 |
4 224 plus 11 for each completed month of such service in excess of 240 months; |
361 to 480 |
5 544 plus 7 for each completed month of such service in excess of 360 months; |
481 and over |
6 384 plus 5 for each completed month of such service in excess of 480 months; |
[Definition inserted by Notice No. 499 of 11 April 1997]
means an annuity which is not payable immediately upon the date of exit but becomes payable at a future date, which may be the pension retirement date or an earlier date as specified in the rules;
[Definition inserted by section 1(b) of Notice No. 5191, GG51202, dated 10 September 2024]
means a member who has left the service of an employer for any reason other than ill health, retirement, death or an exit as per rule 14.8, and has made an irrevocable election in writing in terms of rule 16.5.1, on exit, to receive the entire vested component and savings component balances due as a lump sum benefit and to preserve the retirement component in the Fund for payment at a future date subject to the member reaching retirement age, where retirement age is between the ages of fifty-five and sixty years.
Provided that no further contributions shall be made by a deferred pensioner to the Fund;
[Definition inserted by section 1(b) of Notice No. 5191, GG51202, dated 10 September 2024]
means the amount determined by legislation, below which a member’s pension benefits from both the vested and retirement components may be commuted into a lump-sum payment as opposed to the payment of an annuity;
[Definition inserted by section 1(b) of Notice No. 5191, GG51202, dated 10 September 2024]
in relation to a member means, in respect of a member who divorced prior to 1 August 2019 and whose former spouse was paid a portion of the member’s pension interest and which member notified the Fund in the prescribed period that he or she still wishes the divorce debt approach to be applied to him or her, an amount equivalent to the amount of the pension interest assigned to the member's former spouse in terms of a divorce order or decree of dissolution of marriage accumulated from the date of payment to the former spouse to the date on which a benefit is paid to the member in terms of the rules together with the interest from the date of payment to the former spouse at the rate or rates determined from time to time by the Board as the rate or rates of interest payable in respect of monies owed to the Fund, adjusted by any amounts repaid to the Fund by the member to reduce this divorce debt;
[Definition substituted by rule 1 of Notice 399 of 2019, GG 42603, dated 31 July 2019]
"eligible child"
means the natural or adopted (as meant in the Child Care Act 74 of 1983 as amended) child of a member or pensioner or a deceased member or pensioner who:
| (a) | is alive and under the age of 18; or |
| (b) | is under the age of 22 and is in the opinion of the Board a full time student; or |
| (c) | is a child over the age of 18 and who, in the opinion of the Board, is disabled and was factually dependent on the member or pensioner immediately before the death of such member or pensioner. |
[Definition inserted by Notice No. 1073 of 8 August 2003]
"education service"
the teachers or other persons as defined in the Educators' Employment Act performing education functions at a state educational institution, which is an institution (including an office controlling such institution), other than a university or technikon, that is wholly or partially funded by the State and in regard to which the remuneration and service conditions of such teachers or other persons performing education functions are determined by or in terms of a law;
| (a) | an admitted employee organisation referred to in section 1 of the Public Service Labour Relations Act, 1994; |
| (b) | an admitted employee organisation referred to in section 1 of the Education Labour Relations Act, 1993; |
| (c) | an employee organisation or other employee structure formed by personnel appointed in terms of the Intelligence Services Act, 1994 (Act No. 38 of 1994) the Defence Act, 1957 (Act No. 44 of 1957) and the South African Police Service Act, 1995 (Act No. 68 of 1995) and which has for negotiation purposes been accepted by the employer; |
means a member’s average pensionable emoluments during last 24 months of his/her total pensionable service, or during the whole period of such service, whichever period is shorter.
[Definition substitutd by section 1(d) of Notice No. 5191, GG51202, dated 10 September 2024]
the first day of April of a year up to the last day of March of the ensuing year;
means an annuity that becomes payable from the first month following the date of exit from the Fund;
[Definition inserted by section 1(c) of Notice No. 5191, GG51202, dated 10 September 2024]
compounded interest at a rate as determined from time to time by the Board after consultation with the Actuary: Provided that different rates may be determined in respect of different rules;
the period between the date on which a former member of a non-statutory force or service joined his or her respective former forces or services (as reflected on his or her service certificate) and the date of their taking up employment, or entering into an agreement with or their attestation into the employer, provided that such service will only be recognised for the period after the former member of a non-statutory force or service attained the age of sixteen years, so that service prior to the age of sixteen years will not be regarded as NSF Service. In the case of a beneficiary of a former member of a non-statutory force or service, NSF Service means the period of NSF Service of the former member of a non-statutory force or service through whom the beneficiary is entitled to a benefit in terms of the Fund;
[Definition inserted by Notice No. 423 of 31 March 2004]
means an eligible child of whom both parents, natural or adopted, are deceased;
[Definition inserted by Notice No. 1073 of 8 August 2003]
means a member who has left the service of an employer for any reason other than ill health, retirement, death or an exit as per rule 14.8, and
| (a) | has not chosen to transfer his/her benefits, on exit, to an approved retirement fund; and |
| (b) | has, in the same year of his or her exit, taken out a savings withdrawal benefit and is not eligible for a second payment from the savings component in that tax year, due to the remaining savings component balance being higher than R 2 000 and retains the remaining balance from the savings component in the Fund; |
provided that no further contributions shall be paid to the Fund by or in respect of a Paid-Up member.
[Definition inserted by section 1(e) of Notice No. 5191, GG51202, dated 10 September 2024]
the basic annual salary of a member and any other emoluments to be recognised as pensionable emoluments, after an agreement has been reached between the employer and employee organisations taking into account the actuary's report on the financial implications regarding the inclusion thereof as pensionable emoluments;
in relation to a court order granted under section 7(8)(a) of the Divorce Act, or a court order granted in respect of the division of assets of a marriage according to the tenets of a religion, means, in relation to a member, that member’s total actuarial interest, as the case may be determined in terms of the Law and rules, on the date of divorce;
[Definition substituted by section 1(f) of Notice No. 5191, GG51202, dated 10 September 2024]
the earliest date on which a member is entitled to retire in terms of section 19 of the Law with normal retirement benefits, i e without the application of an early retirement adjustment factor as envisaged in rule 14.3.3(b): Provided that for the purpose of section 19(b) of the Law, it shall be the date when such member attains the age of 60 years;
[Definition substituted by Notice No. 499 of 11 April 1997]
means either the pensionable service before the vested date, pensionable service on the vested date, or the pensionable service after the vested date as the context requires.
[Definition substituted by section 1(i) of Notice No. 5191, GG51202, dated 10 September 2024]
means any period of service, subject to the provisions of rules 9 to 12—
| (a) | In respect of a member who was a member of the Government Service Pension Fund or the Temporary Employees Pension Fund immediately prior to the fixed date, the period of time which was recognised as pensionable service of the member under the Government Service Pension Act or the Temporary Employees Pension Act in respect of which no benefit was paid out of the Fund; |
| (b) | continuous service of a member from the fixed date up to the vested date, in respect of which such a member contributed to the Fund or was liable to contribute to the Fund, and in respect of which no benefit has been paid to the member as contemplated in the rules; and |
| (c) | any other period which is recognised or allowed in terms of the rules as pensionable service before the vested date of a member: |
Provided that any period of pensionable service before vested date shall be calculated by the year and any portion of a year shall be determined according to the proportion which the number of days in that portion of a year bears to 365 days.
[Definition inserted by section 1(g) of Notice No. 5191, GG51202, dated 10 September 2024]
means any period of service:
| (a) | of a member after the vested date, in respect of which such a member contributes or contributed to the Fund or was liable to contribute to the Fund, and in respect of which no benefit has been paid out of the Fund under the rules; and |
| (b) | any other period which is recognised or allowed in terms of the rules as pensionable service after the vested date of a member: |
Provided that any period of pensionable service from the vested date shall be calculated by the year and any portion of a year shall be determined according to the proportion which the number of days in that portion of a year bears to 365 days.
[Definition inserted by section 1(h) of Notice No. 5191, GG51202, dated 10 September 2024]
means a list referred to in the proviso to section 224(2) of the Constitution of the Republic of South Africa, 1993 (Act No. 200 of 1993) as amended by item 3 of Annexure D of Schedule 6 to the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996);
[Definition inserted by Notice No. 423 of 31 March 2004]
the Minister or the relevant employee organisations, as the case may be, who designate the trustees;
the Public Service Act, 1994;
the Minister: Provided that for the purposes of rules 4.2.2 and 4.2.3, it shall mean the Minister in consultation with the Ministers responsible for public service and Administration, Education, the South African National Defence Force, the South African Police Service and the State Security Agency;
[Definition substituted by section 1 of Notice No. 1434, GG47534, dated 18 November 2022]
refers to a notional account where a member's accrued benefits based on their retirement service will be allocated after the vested date. The retirement component will be subject to the following conditions:
| (a) | any amounts transferred on or after the vested date from a retirement component in another approved retirement fund are to be allocated to this component of the Fund; |
| (b) | any amounts transferred from the vested and/or savings component of the Fund or from another approved retirement fund, are to be allocated to this component of the Fund; |
| (c) | the total value of the member’s benefits in the retirement component is to be paid in the form of an annuity unless otherwise permitted by legislation; and |
| (d) | the exceptions to paying an annuity are where the member is deceased or where the member elects to transfer the retirement component to an approved fund or where the de minimis threshold as specified in the Income Tax Act applies to the member’s pension benefits from the vested and retirement components. |
[Definition inserted by section 1(j) of Notice No. 5191, GG51202, dated 10 September 2024]
means—:
| (e) | two-thirds of pensionable service from the vested date, in respect of which such a member contributes or contributed to the Fund or was liable to contribute to the Fund, and in respect of which no benefit has been paid to the member as contemplated in the rules; |
| (f) | increased by any pensionable service as determined by the actuary, arising from transfers, after the vested date, into the retirement component from the vested component or savings component, or both, from the member’s records, as allowed by legislation; |
| (g) | increased by any pensionable service as determined by the actuary, arising from transfers, after the vested date, into the retirement component from a vested component, savings component or retirement component or any combination of the components of another retirement fund as allowed by legislation; |
| (h) | increased by two-thirds of any additional pensionable service purchased after the vested date; |
| (i) | reduced by the pensionable service, as calculated by the actuary, in respect of any transfers out, after the vested date, of the retirement component to the retirement component of another retirement fund as permitted by legislation; and |
| (j) | reduced by pensionable service, as calculated by the actuary, to be necessary to give effect to a deduction or reduction as permitted in the Law or the rules. |
[Definition inserted by section 1(j) of Notice No. 5191, GG51202, dated 10 September 2024]
refers to a notional account where a member's accrued benefits based on their savings service will be allocated from the vested date. The savings component will be subject to the following conditions
| (a) | a once-off amount, being seed capital, is to be allocated to this component on or after the vested date, with the allocation backdated to the vested date; |
| (b) | any amounts transferred on or after the vested date from a savings component in another fund may be allocated to this component if the member’s remaining total benefits in that fund are transferred in terms of the rules of the Fund; |
| (c) | a member may elect to transfer the value of the member’s actuarial interest in this component, or a part thereof, into the member’s retirement component of the Fund; |
| (d) | a member may make a savings withdrawal benefit from this component; and |
| (e) | The savings component not paid as a lump sum on retirement, will be dealt with in accordance with the Income Tax Act. |
[Definition inserted by section 1(k) of Notice No. 5191, GG51202, dated 10 September 2024]
means—:
| (a) | one-third of pensionable service from vested date, in respect of which such a member contributes or contributed to the Fund or was liable to contribute to the Fund, and in respect of which no benefit has been paid out of the Fund under the rules; |
| (b) | increased by seeding service, if any; |
| (c) | increased by any pensionable service, as determined by the actuary, arising from transfers, after the vested date, into the savings component from another retirement fund, as allowed by legislation; |
| (d) | increased by one-third of any additional pensionable service purchased after the vested date; |
| (e) | reduced by the pensionable service as calculated by the actuary, in respect of the savings withdrawal benefits paid to the member; |
| (f) | reduced by the pensionable service, as calculated by the actuary, in respect of any transfers after the vested date, to the retirement component of the Fund or another retirement fund, as is permissible by the Income Tax Act read with the Law; |
| (g) | reduced by the pensionable service, as calculated by the actuary, to be necessary to give effect to a deduction or reduction as permitted in the Law or the rules. |
[Definition inserted by section 1(k) of Notice No. 5191, GG51202, dated 10 September 2024]
means the once-off amount, equivalent to the lower of 10 percent of the actuarial interest of a member as at 31 August 2024 and R30 000, that will be transferred from the vested component to the savings component on the vested date.
[Definition inserted by section 1(k) of Notice No. 5191, GG51202, dated 10 September 2024]
means the pensionable service period, as determined by the actuary, that will equate to the value of the seed capital.
[Definition inserted by section 1(k) of Notice No. 5191, GG51202, dated 10 September 2024]
is the official document issued by the relevant non-statutory force or service which contains sufficient information, in the opinion of the Board, as proof of the member's period of service in such force or service;
[Definition inserted by Notice No. 423 of 31 March 2004]
the South African National Defence Force, South African Police Service and State Security Agency as described in section 1 of the Law;
[Definition substituted by section 53 of the General Intelligence Laws Amendment Act, 2013 (Act No. 11 of 2013)]
shall mean the following for the purpose of eligibility to benefits:
A person who is—
| • | a lawful husband or wife; or |
| • | a life partner (including same sex life partner); or |
| • | a husband or wife in terms of the Recognition of Customary Marriages Act, 1998 or the tenets of any religion, of the member or pensioner at the date of the member's or pensioner's death: |
Provided that a member or pensioner—
| (a) | should register with the Fund his or her spouse; |
| (b) | should register with the Fund all spouses in terms of the Recognition of Customary Marriages Act, 1998 or the tenets of any religion; |
| (c) | who has (a) spouse(s) in terms of the Recognition of Customary Marriages Act, 1998 or the Marriages Act, 1961, or the tenets of any religion may not register a life partner with the Fund; |
Provided further that registration of a person as a spouse will be prima facie proof of being a spouse: Provided further that a person who is not registered as a spouse may provide proof to the satisfaction of the Board that he or she is a spouse.
[Definition substituted by Notice No. 1073 of 8 August 2003]
for purposes of the Annexure to the rules shall mean a transfer benefit to an approved retirement fund payable in terms of the provisions of the Annexure equal to the aggregate of—
| (i) | a gratuity calculated at 7,5% of the member's final salary multiplied with the period of his or her pensionable service, and increased by ten percentage points for each full year of pensionable service between 5 and 15 years of pensionable service, which amount shall become an entitlement of the member on the condition that he or she deposits the amount into the approved retirement fund immediately upon becoming entitled thereto; and |
| (ii) | the difference between the member's actuarial interest in the Fund and the amount referred to in paragraph (i), if any; |
subject to such transfer being subject to the rules of the approved retirement fund specifying that, with reference to the transfer benefit, any subsequent lump sum benefit payable by that fund or any successor fund to the member and/or his beneficiaries shall be limited to one third of the said transfer benefit, with interest. The balance of the member's transfer benefit with interest, after deduction of any lump sum payment referred to above, shall be applied for the purchase of an annuity, albeit immediately or upon the member's ultimate retirement.
[Definition inserted by Notice No. 1073 of 8 August 2003]
the Board of Trustees;
means the sum of the pensionable service before the vested date and the pensionable service after the vested date.
[Definition inserted by section 1(l) of Notice No. 5191, GG51202, dated 10 September 2024]
a person designated in terms of rule 4.1.2 and 4.1.4;
the period between the date on which a member ceases or would cease to be a member of the Fund and the date he or she would have attained the age of 60 years, or 65 years in the case of a member who holds an office referred to in rule 14.2.3(b)(iii)(BB) at the commencement date and who vacates such office at the end of such term of office;
[Definition substituted by Notice No. 499 of 11 April 1997]
means a notional account where a member’s accrued benefits in the Fund as at the vested date will be allocated and is subject to the following conditions.
| (a) | the member's actuarial interest in this component, after taking into account the deduction and allocation of the seed capital to the savings component, is subject to and must be paid in accordance with the rules of the Fund that existed immediately prior to the vested date; |
| (b) | no additional benefits may be allocated to this component on or after the vested date, save for benefits relating to arrear contributions relating to the period before the vested date as well as the exceptions recorded in the rules; |
| (c) | any amounts transferred from a vested component in another fund on or after the vested date must be allocated to this component if the member’s retirement benefits in that fund is transferred in terms of the rules of the Fund; |
| (d) | a member may elect to transfer the value of this component, or a part thereof, into the member’s retirement component of the Fund; |
[Definition inserted by section 1(m) of Notice No. 5191, GG51202, dated 10 September 2024]
means 1 September 2024.
[Definition inserted by section 1(m) of Notice No. 5191, GG51202, dated 10 September 2024]
means any period of service, subject to the provisions of rules 9 to 12—
| (e) | in respect of a member who was a member of the Government Service Pension Fund or the Temporary Employees Pension Fund immediately prior to the fixed date, the period of time which was recognised as pensionable service of the member under the Government Service Pension Act or the Temporary Employees Pension Act in respect of which no benefit was paid out of the Fund; |
| (f) | continuous service of a member from the fixed date up to the vested date, in respect of which such a member contributed to the Fund or was liable to contribute to the Fund, and in respect of which no benefit was paid to the member under the rules; |
| (g) | reduced by any pensionable service ceded due to a transfer on exit from the Fund as permitted by the Income Tax Act to an approved fund or to the retirement component; |
| (h) | reduced by any pensionable service ceded, as determined by the actuary, to be necessary to give effect to a deduction as permitted in the Law or the rules; |
| (i) | reduced by any seeding service; and |
| (j) | adjusted for any other pensionable service that may be ceded or allocated to the vested component in terms of the Income Tax Act; |
Provided that a period of vested service shall be calculated by the year and any portion of a year shall be determined according to the proportion which the number of days in that portion of a year bears to 365.
[Definition inserted by section 1(m) of Notice No. 5191, GG51202, dated 10 September 2024]