Impact of Pensions Restructuring on GEPF PSCBC Resolution 12 of 2002 August 2003 - PowerPoint PPT Presentation

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Impact of Pensions Restructuring on GEPF PSCBC Resolution 12 of 2002 August 2003

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Scope of Changes (What?) Procedures and Rules for Changes (How? ... Disallowed from 1 April 2003. Existing Dormant members are still recognised. 10/4/09 ... – PowerPoint PPT presentation

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Title: Impact of Pensions Restructuring on GEPF PSCBC Resolution 12 of 2002 August 2003


1
Impact of Pensions Restructuring on
GEPFPSCBC Resolution 12 of 2002 August 2003
2
Points 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

3
Scope 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

4
Changes 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

5
Changes 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

6
Changes to Existing Benefits Spouse Pension
  • EXAMPLE For a member with 31 years of
    pensionable service who retire aged 60. Final
    salary R 95 000.

7
Changes 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

8
Changes 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.)

9
Changes 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

10
Changes 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

11
Changes 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

12
New 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

13
New 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.

14
New 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

15
New 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

16
New 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

17
New 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

18
New Benefits Payable Dormant Membership
  • Disallowed from 1 April 2003.
  • Existing Dormant members are still recognised.

19
Status 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

20
Status 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

21
Status 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

22
General 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

23
General 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

24
Pensionable 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

25
Pensionable Service Projects
  • Industrial Strikes Ciskei (Continue)
  • Actuaries Cost Valuation Done
  • Implementation upon Cost and Funding Approval

26
Pensionable 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.

27
Pensionable 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

28
Pensionable 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)

29
Pensionable 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

30
Pensionable Service Employees affected by Venda
Pension Fund
  • 1. Referred to PSCBC Task Team Pension
    Restructuring.
  • 2. Task Team to develop proposals

31
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