Title: Impact of Pensions Restructuring on GEPF PSCBC Resolution 12 of 2002 August 2003
1Impact of Pensions Restructuring on
GEPFPSCBC Resolution 12 of 2002 August 2003
2Points Covered
- Scope of Changes (What?)
- Procedures and Rules for Changes (How?)
- Implementation Status Update (What? and When?)
- Generic GEPF Procedures for Interaction (How?)
- Status of Pensionable Service Projects
3Scope of Changes
- Changes to Existing Benefits Payable
- Annual Pension Increases
- Registration of Spouses
- Optional Increase of Spouses Pension
- Cost of Purchasing Service (POS)
- Interest Payable by GEPF
- Changes to Admin. Rules
- Board, Contribution Rate, Bargaining
requirement - New Benefits Payable
- Funeral Benefits
- Orphan Pension
4Changes to Annual Pension Increases (01 April
2002)
- 1 April each year.
- 75 of average increase in CPI over 12 months
ending 30 November. - 7 for 2003.
- Additional Catch-up increases annually when
less than minimum level of 75 of annuity at
retirement adjusted for full inflationary
increases - Actuaries performing calculations to publish
increases by 06 Aug. 2003 - Implementation by GEPF to reflect in Pension
Payment in October 2003 - 18 Months arrears payable by end October
- Pensioner communication
5Changes to Existing Benefits Spouse Pension(01
Dec. 2002)
- Act References
- Definition of a Spouse which includes a Life
partner - Marriage Act 25 of 1961 Customary Marriages Act
12 of 1998 - Business Rules
- Need to register Spouse before claim is raised
- only one Life Partner (includes same sex life
partner ) - Multiple spouses (Civil, Customary Union or
Religious). - Cannot be married and have a life partner
- Once-off irrevocable choice as member with 10
years of Pensionable Service before
Retirement/Discharge for option of 75 (vs. 50)
Spouse Pension
6Changes to Existing Benefits Spouse Pension
- EXAMPLE For a member with 31 years of
pensionable service who retire aged 60. Final
salary R 95 000.
7Changes to Existing Benefits - Spouse
- Forms and Attachments
- Choice form for Spouse Pension Option with Z102
- Z864 for Registration and De-registration
- Z143 for Applying for Spouses Pension
- Attachments Certified IDs (Preferable Barcoded),
Marriage Certificate (from Home Affairs),
Affidavit for Life Partner, Death Certificate
8Changes to Existing Benefits POS(01 Dec. 2002)
- Act References
- Rule 10.2 and 11.2 of the GEPF act applies.
- Business Rules
- F(x) factor Values that are cost neutral to GEPF
Fund (when Fund is valuated) - Leave Without Pay period in excess of 120
calendar days - Other Periods of Service period after the age of
18 that was not pensionable - Previous Service Break break must be lt36 months
and should apply within 1Year - Forms and Attachments
- Z215 for Application
- Attachments A copy of the members personnel
record card and salary slips before and after the
break in service (for Leave without Pay) Proof
of Benefit Received (Z102 and other docs.)
9Changes to Existing Benefits Interest (Date of
Gazetting)
- Act References
- Section 26 of the GEPF Law.
- Business Rules
- Interest payable on late Payments only (after 60
days of withdrawal). - Interest is calculated from date of withdrawal
from fund (last day of service) and not after
receiving duly completed Statement
(documentation) - Forms and Attachments
- Indicated Separately on Payment Advice
10Changes to Admin. Rules
- Method to Calculate EMPLOYER CONTRIBUTION RATE
(01 April 2002) - Varying depending on Fund valuation.
- Minimum funding level of 90.
- Determined by Employer in consultation with
Board. - No impact on benefits.
- Requirement for Bargaining on Rule Amendments
(Date of Gazetting) - Bargaining requirement removed for Administrative
Aspects
11Changes to Admin. Rules Board (01 Dec. 2002)
- Employee nominees
- Labour Caucus in PSCBC nominates six (plus
alternates). - Employees in SANDF, NIA and SASS Intelligence
Services nominate one (plus alternate) - Pensioner Nominee
- Proposals from IEC (overseeing process) and EISA
being evaluated - Process will take at least 6 months
- Documentation for the trustee inception programme
initiated (Rules, Procedures, Responsibilities,
Training requirements, etc.) - Employer nominees
- Minister of Finance nominates eight after
consultation with specified Ministers. - DPSA facilitating the process
12New Benefits Payable Funeral Benefit(01 Dec.
2002)
- Act References
- Definition of a Pensioner, Member, Spouse (Life
Partner) and Eligible Child - Business Rules
- Covered Member, Pensioner, Spouse, Eligible
Child - Entitled to Money Member, Pensioner, Spouse,
Major Child, Brother/Sister and Parents of Member
or Pensioner - Applicant Member, Pensioner, Spouse, Eligible
Child, Parent, Guardian, executor of Estate - Application directly with GEPF
13New Benefits Payable Funeral Benefit
- Business Rules (continue)
- Pensioners qualify if became a pensioner after 01
Dec. 2002 - R 7 500 for death of a member or pensioner.
- R 7 500 for death of a spouse.
- R 3 000 for death of a each eligible child.
14New Benefits Payable Funeral Benefit
- Business Rules (continue)
- No limit in number of covered people
- Benefits are payable irrespective of order of
deaths - Taxation as per Income Tax Act
- Payments to one entity only
- Payments to Post Office Preferred for 48 hours
lead time, alternatively Elect. Bank Transfers - No Interest is Payable by GEPF
- No nominations required for People Entitled to
Funeral Benefit - Forms and Attachments
- Compulsory Z300 with ID (Preferable Barcoded),
Death Certificate and other optional attachments
15New Benefits Payable ORPHANS PENSION (01
Dec. 2002)
- Act References
- Definition of Eligible Child
- Section 14 of the GEPF Law
- Business Rules
- Covered eligible children upon the death of a
member or pensioner (where pensions commenced
after 01 December 2002) where no other parents
exist - One child 20 of pension.
- Two children 30 of pension.
- Three and more children 40 of pension.
- The above is doubled when Spouse is last
surviving Parent
16New Benefits Payable ORPHANS PENSION
- Business Rules (Continue)
- Payee major orphan Master or the Supreme Court
for administration Guardian of a minor child
and/or Trust Fund. - Only for members with more than 10 years of
Pensionable Service - Eligible child
- Natural or adopted (as meant in the Child Care
Act, 74 of 1983 as amended - an adoption order). - Alive and under 18.
- Under 22 if full time student
- Over 18, disabled and financially dependent.
- Will use Life Certificates
- Adjustments to Amount Payable when Number of
Orphans changes
17New Benefits Payable ORPHANS PENSION
- Forms and Attachments
- Z143 for Application
- Attachments Death Certificate, Certified ID
(Preferable Barcoded) of Deceased, applicant and
Children, bank form (Z894) and other attachments
18New Benefits Payable Dormant Membership
- Disallowed from 1 April 2003.
- Existing Dormant members are still recognised.
19Status Update (Components where Bargaining is
completed)
- Trustees Approval obtained for Rule Amendments
- Gazetting within August 2003
- Resolution 7 of 2002 (Severance Packages),
Pension Increase and Spouses Pension Implemented - Other GEPF system and Procedural Changes
Scheduled for August 2003
20Status Update (cont) (Components where
Bargaining is completed)
- Internal GEPF Education (In Progress/Constant
Effort) - External Communication to Members and Pensioners
- Road show From August 2003
- Booklet Done (Distribution during August 2003)
- Poster (A2 Size)
- News Letters every 6 months
- GEPF Website Publications (Ongoing)
- New Version of Employer Procedure Manual To be
Initiated
21Status Update (cont) (Components where
Bargaining is completed)
- External System Changes Initiated (PERSAL/PERSOL)
- Will Handle Backdated cases first
- Spouse (and Dependants) Registration In
progress and On-going - Pension Increase catch-up Payment at End of
October 2003
22General GEPF Interaction Procedures
- General Business Rules
- Backdated cases will be entertained and
prioritised according to date received eg.
Funeral benefits payable - A separate Application Form for each covered
person eg. Spouses Pension Application - Claims must be submitted to the GEPF as soon as
possible (Members, Pensioners and Employers) - Personal
- Regional Offices (BISHO, MAFIKENG and POLOKWANE)
or Head Office accompanied with specified
documentation - Telephonic
- Tel Number (012) 319 1911 Call Centre (012)
319 1000
23General GEPF Interaction Procedures
- Fax
- Only for Initiating Funeral Benefits Claims and
General Enquiries - Paper Based (Post or Deliver)
- Legible Originals to be Scanned
- E-mail (enquires_at_gepf.co.za)
- Only General Enquiries (not Case Specific)
- www.Gepf.co.za
24Pensionable Service Projects
- Industrial Strikes - Ciskei
- Validation Completed using set criteria
- 1156 case have insufficient Information (to be
reviewed)1952 Accepted No other cases will be
accepted other than the fixed list coordinated
by Premiers Office
25Pensionable Service Projects
- Industrial Strikes Ciskei (Continue)
- Actuaries Cost Valuation Done
- Implementation upon Cost and Funding Approval
26Pensionable Service General Assistants
(Appointed before 1994)
- PSCBC Resolution 12 of 2002 as contemplated in
clause 7.2.2 of the PSCBC Resolution 7 of 1998.
Furthermore process the payment of eligible
employees, within a period of 18 months (from 01
Dec 2002) - PSCBC Resolution 7 of 1998 7.2.2 the amount
needed to increase to actual service the
pensionable service of former general assistants
who - a) are now permanent employees of the employer,
- b) had a stable and continuous employment
relationship in the public service for at least a
year immediately before they became permanent
employees, and - c) due to past measures that discriminated on the
basis of race , were employed as casual employees
and therefore did not belong to a government
pension fund.
27Pensionable Service General Assistants
- Current Scenario
- Validation Completed using set criteria
- Existing applications 7285 of 24431 accepted
- Actuaries Cost Valuation Done Awaiting PSCBC
- Audit/Marketing Task Team to be established
- Task team
- Need union and employer representatives in each
Province. - Coordination via Contact at Premiers Office and
DPSA - Need co-operation from Departments
28Pensionable Service General Assistants
- Who does not Qualify
- Persons who were appointed with Waiting periods
- Where there were delays in Admittance to fund
(Should be prior 1994) - Persons who also were/are members of other Funds
- Casual Laborers versus Piece Workers
- How to apply
- Forward list of names and documentary proof
(application form and attachments) to the
representative at the the Premiers Office
Application for Non-contributory Pensionable
Service (PSCBC Resolution 7/1998)
29Pensionable Service General Assistants
- Acceptable proof in order to confirm a members
service date - Payment sheets
- Appointment Advice
- Salary advices
- Staff Record Cards
- Leave Cards
- Where there is not acceptable documentary proof,
the case must be referred to the Task Team for
qualification
30Pensionable Service Employees affected by Venda
Pension Fund
- 1. Referred to PSCBC Task Team Pension
Restructuring. - 2. Task Team to develop proposals
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