Mthobisi Nozulela|Published
The Government Employees Pension Fund (GEPF) has outlined the rules governing early retirement for public servants, warning that members who retire before the age of 60 may face a reduction in their pension benefits.
The fund said members who retire early may receive a gratuity and a monthly pension annuity if they have at least 10 years of pensionable service.
However, their benefits are reduced by 0.33% for every month between their early retirement date and the normal retirement age of 60.
"Under certain circumstances, members may retire early, that is, before reaching the normal retirement age of 60. Again, the member’s years of pensionable service determine the benefits," the fund said.
"Members with 10 or more years of service receive annuities and gratuities. These are calculated in the same way as for normal retirement, but with a reduction of a third of one percent (0.33%) for each month between the dates of early retirement and normal retirement".
What happens when members retire at 60?
The fund also outlined the rules governing normal retirement, which takes place at the age of 60.
According to the GEPF, members with less than 10 years of pensionable service receive a once-off lump sum equal to their actuarial interest in the fund.
"Sixty (60) years is the normal retirement age for GEPF members. The benefits paid depend on whether a member has less than 10 years’ pensionable service, or 10 or more years of pensionable service".
"Members with less than 10 years’ service receive a gratuity – a once-off cash lump sum that is equal to their actuarial interest in the Fund. Members with 10 or more years’ service receive a gratuity and a monthly pension annuity".
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