Government Employees Pension Law, 1996

Schedule 1 : Rules of the Government Employees Pension Fund

14. Benefits payable to members

14.2 Discharge after at least 10 years of total pensionable service

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[Rule 14(14.2) heading substituted by section 9 of Notice No. 5191, GG51202, dated 10 September 2024]

 

14.2.1Subject to rule 14.10 if a member who has at least 10 years of total pensionable service to his or her credit is discharged on account of a reason mentioned in rule 14.1.1, there shall be paid to him or her—

a gratuity which is the composite of

(a) a gratuity calculated at 6.72 percent of his or her final salary multiplied by the period of his or her vested service, provided that the vested service is at least 10 years;
(b) a gratuity of three times 7.75 percent (or three times 8.45 percent for Services members), of his or her final salary multiplied by the period of his or her savings service;

and an annuity which is the composite of

(c) an annuity calculated at one fifty-fifth of his or her final salary multiplied by the period of his or her vested service;
(d) a deferred annuity of 1.5 times 1/58.65 (or 1.5 times 1/60.71 for Services members), of his or her final salary multiplied by the period of his or her retirement service, or an immediate annuity in the case of ill health, death, retirement or an exit in terms of rule 14.8, and
(e) a supplementary amount of R360, or such other amount as may be payable from time to time, per year:

Provided that a member's final salary shall for this purpose not be less than his or her pensionable emoluments as on the day immediately before the commencement date.

[Rule 14(14.2.1) substituted by section 9 of Notice No. 5191, GG51202, dated 10 September 2024]

 

14.2.2The member may elect, in writing when he or she retires or is discharged, to have either the gratuities in rule 14.2.1 (a) and 14.2.1 (b) or the annuities in rule 14.2.1 (c) and 14.2.1 (d) reduced in favour of the increased spouse's pension entitlement in terms of rule 14.6.2 in respect of the spouse(s) so recognised in terms of the rules of the Fund at the time of the calculation. In this case either:
(a)the gratuity in rule 14.2.1 (a) will be substituted for a gratuity rate of a percentage of his or her final salary multiplied by the period of his or her vested service as calculated by the actuary taking into account all relevant factors, which would include inter alia the ages and genders of the member and the spouse(s), any remaining guarantee period, and the valuation assumptions from the most recent approved actuarial valuation of the Fund; or; and
(b)the gratuity in rule 14.2.1 (b) will be substituted for a gratuity rate of a percentage of his or her final salary multiplied by the period of his or her savings service as calculated by the actuary taking into account all relevant factors, which would include inter alia the ages and genders of the member and the spouse(s), any remaining guarantee period, and the valuation assumptions from the most recent approved actuarial valuation of the Fund; or
(c) the annuity in rule 14.2.1 (c) will be substituted for an annuity of such percentage of his or her final salary multiplied by the period of his or her vested service calculated by the actuary taking into account all relevant factors, which would include inter alia the ages and genders of the member and the spouse(s), any remaining guarantee period, and the valuation assumptions from the most recent approved actuarial valuation of the Fund ,and
(d) the annuity in rule 14.2.1 (d) will be substituted for an annuity of such percentage of his or her final salary multiplied by the period of his or her retirement service calculated by the actuary taking into account all relevant factors, which would include inter alia the ages and genders of the member and the spouse(s), any remaining guarantee period, and the valuation assumptions from the most recent approved actuarial valuation of the Fund.

[Rule 14(14.2.2) substituted by section 10 of Notice No. 5191, GG51202, dated 10 September 2024]

 

14.2.3Notwithstanding anything to the contrary contained in the rules, a gratuity which is payable in terms of rule 14.2.1(a) and rule 14.2.2(a) to a member who is a member of the South African National Defence Force and who is discharged in terms of any law before he or she attains the age of 53 years, shall be increased by 12 per cent of such gratuity.

[Rule 14.2.3, previously rule 14.2.2, renumbered and substituted by Notice No. 1073 of 8 August 2003]

 

14.2.4For the purposes of the calculation of the gratuities and annuities in terms of rule 14.2.1 and rule 14.2.2, the period of total pensionable service—
(a)of a member who is a member of the South African Police Service, the Correctional Services, the South African National Defence Force, the National Intelligence Agency or the South African Secret Service, shall be increased by a period which is equal to one quarter of the period by which his or her total pensionable service, ignoring the service reductions due to savings withdrawal benefits, exceeds the period of 10 years with such an enhancement being allocated proportionally across the vested, savings and retirement service;
(b)of a member—
(i)who is discharged on account of a reason mentioned in rule 14.1.1(a), (b), (c), (e) or (f); or
(ii)who, in terms of section 16(5) of the Public Service Act, 1994, section 17(2C) of the Post Office Service Act, 1974 or section 31(5) of the Audit Arrangements Act, 1992, or section 45(4) of the South African Police Service Act, 1995 (Act No. 68 of 1995), is allowed to retire during an extended term of office in any of the sections concerned; or
(iii)mentioned in section 3(4) of the Public Service Commission Act, 1984 or sections 211 and 213 of the Constitution of the Republic of South Africa, 1993, who, during a period or extended period contemplated in section 2(5) of the Public Service Commission Act, 1984, or in terms of similar provisions regulating the conditions of service of a provincial service commission contemplated in section 213 of the Constitution of the Republic of South Africa, 1993—
(aa)is allowed to vacate his office in terms of section 4(2) of the Public Service Commission Act, 1984, or in terms of similar provisions regulating the conditions of service of a provincial service commission contemplated in section 213 of the Constitution of the Republic of South Africa, 1993, in order to promote efficiency; or
(bb)is removed from office in terms of sections 211(1)(e) or 213(2) of the Constitution of the Republic of South Africa, 1993, in order to promote efficiency; or
(iv)who is allowed to vacate his or her office in terms of section 3(a) of the Auditor-General Act, 1995, in order to promote efficiency.

shall be increased proportionally across the vested, savings and retirement components by a period equal to—

(AA)one third of the period of his or her total pensionable service or by his or her unexpired period of service whichever period is the shorter, but not exceeding five years; and
(BB)one half of the period during which. he or she held an office referred to in section 12 (1) of the Public Service Act, 1994, or section 10A of the Post Office Service Act, 1974, or sections 191 (4), 211 or 213 of the Constitution of the Republic of South Africa, 1993, or section 27 (2) of the Audit Arrangements Act, 1992, or section 6 and 7 of the South African Police Service Act, 1995 (Act 68 of 1995):

Provided that the member's total pensionable service, the period whereby it is increased in terms of this rule and the period during which a member held any office referred to in section 12 (1) of the Public Service Act, 1994, or section 10A of the Post Office Service Act, 1974, or sections 191 (4), 211 or 213 of the Constitution of the Republic of South Africa, 1993, or section 27 (2) of the Audit Arrangements Act, 1992, or section 6 and 7 of the South African Police Service Act, 1995 (Act 68 of 1995), shall not exceed 55 years: Provided, further, that the period of 55 years shall be adjusted in accordance with the formula as set out in rule 13.1 if a member's working status is changed from full-time to part-time employment.

[Rule 14(14.2.4) substituted by section 11 of Notice No. 5191, GG51202, dated 10 September 2024]

 

14.2.5 For the purpose of rule 14.2.4 (b)—
(a)"total pensionable service" shall not include a period during which a member held an office referred to in section 12 (1) of the Public Service Act, 1994, section 10A of the Post Office Service Act, 1974, sections 191 (4), 211 or 213 of the Constitution of the Republic of South Africa, 1993, or section 27 (2) of the Audit Arrangements Act, 1992 or sections 6 and 7 of the South African Police Service Act, 1995 (Act 68 of 1995): Provided that a period during which a member held office as referred to above and which can not be regarded as a completed period in accordance with paragraph (b) shall be included as total pensionable service in terms of this rule;

[Rule 14(14.2.5)(a) substituted by section 12 of Notice No. 5191, GG51202, dated 10 September 2024]

(b)"one half of the period", save as provided for in paragraphs (d) to (i) of this rule, shall mean one half of a completed period and also one half of a completed extended period referred to in section 12(1) of the Public Service Act, 1994, section 10A of the Post Office Service Act, 1974, section 2(5) of the Public Service Commission Act, 1984, section 27(2) of the Audit Arrangements Act, 1992, sections 6 and 7 of the South African Police Service Act, 1995 (Act No. 68 of 1995), or in terms of similar provisions regulating the conditions of service of a provincial service commission contemplated in section 213 of the Constitution of the Republic of South Africa, 1993;
(c)the uncompleted portion of the said extended period referred to in subparagraph (b) shall not be taken into account;
(d)a member mentioned in Proclamation 130, 1994, of the President of the Republic of South Africa shall at the expiry of the term mentioned in the said Proclamation be deemed to have occupied the office of a head of department mentioned in section 12(1) of the Public Service Act, 1994, until the date on which that term would have expired if such member was not transferred to a post to which the provisions of section 12(1) of the Public Service Act, 1994, do not apply;
(e)if the President or a Premier appoints a person who is an officer or employee in the public service as defined in section 8 of the Public Service Act, 1994, in the public interest under any law to an office outside the public service, it shall, subject to the provisions of the Law and these  Provided that if such a person is appointed as a member of the Public Service Commission referred to in sections 209, 210 and 211 of the Constitution or to a provincial service commission contemplated in section 213 of the Constitution or to the office of Auditor-General referred to in section 191 of the Constitution or as Deputy Auditor-General shall be recognised as a part of and continuous with his employment in the public service for purposes of these rules and these arrangements shall mutatis mutandis continue to apply unless such a member's membership of the Fund terminates;
(f)a person who is appointed as a member of the Public Service Commission or a provincial service commission or as Auditor-General or as Deputy Auditor-General and who immediately prior to such appointment held an office referred to in section 12(1) of the Public Service Act, 1994, section 10A of the Post Office Service Act, 1974, section 27(2) of the Audit Arrangements Act, 1992 or sections 6 and 7 of the South African Police Service Act, 1995 (Act No. 68 of 1995), shall with effect from the date of such an appointment be regarded to have completed such term of office and the duration of such completed term of office shall be calculated from the date of commencement thereof up to and including the date preceding the date with effect from which he or she is appointed as a member of the Public Service Commission or a provincial service commission or as Auditor-General or as Deputy Auditor-General;
(g)if a member of the Public Service Commission is appointed as a member of a provincial service commission or vice versa or if a member of the Public Service Commission or a member of a provincial service commission is appointed as Auditor-General or if the Auditor-General is appointed as a member of the Public Service Commission or a provincial service commission or if the Deputy Auditor-General is appointed as a member of the Public Service Commission or a provincial service commission or as Auditor-General the measures set out in rules (e) and (f) above shall mutatis mutandis apply;
(h)subject to section 17(4) of the Law the measures set out in rules (e), (f) and (g) above shall be subject to any provisions contained in the laws regulating the conditions of service of members of the Public Service Commission, provincial service commission, the Auditor-General and the Deputy Auditor-General including conditions of service determined in terms of such provisions which have a bearing on the pension position of such members of the Public Service Commission, provincial service commissions, Auditor-General or the Deputy Auditor-General; and
(i)subject to rule (h) the measures set out in rules (e), (f) and (g) shall mutatis mutandis apply to the determination and calculation of the pension benefits of members of the Fund who were appointed to offices as contemplated in this rule before the fixed date.

[Rule 14(14.2.5) previously rule 14.2.4, renumbered and substituted by Notice No. 1073 of 8 August 2003]

 

14.2.6Annuities are payable in equal instalments before or on the last day of each month. The first annuity-payment to a discharged member is payable at the end of the calendar month which follows the month in which the member is discharged.

[Rule 14(14.2.6) previously rule 14.2.5, renumbered and substituted by Notice No. 1073 of 8 August 2003]