For government employees and retirees in South Africa, the Government Employees Pension Fund (GEPF) recently announced a 6% annual pension increase, which took effect on 1 April 2024. This increase aligns with the GEPF’s commitment to helping pensioners keep up with inflation, while ensuring the fund’s long-term sustainability. Here’s a breakdown of the 2024 GEPF pension increase, eligibility, and its significance for pensioners in South Africa.

1. Details of the 2024 Pension Increase

The GEPF has granted a 6% increase for pensioners who retired on or before 1 April 2023. For those who retired after this date, the increase will be proportionate to the number of months they have been receiving a pension as of 31 March 2024. This proportional increase ensures that all pensioners benefit fairly based on their tenure.

2. How the Increase Compares with Inflation

This year’s increase takes into account the 5.5% inflation rate recorded for the year ending 30 November 2023. The 6% pension increase exceeds the inflation rate, amounting to 109.1% of the Consumer Price Index (CPI), as permitted by GEPF Law and Rules. This decision is part of GEPF’s strategy to adjust pensions in line with inflation to help retirees manage rising costs of living.

3. Why the GEPF Increase Matters

GEPF’s annual increases are not just inflation adjustments; they also reflect the Fund’s commitment to balancing the welfare of pensioners with long-term financial health. By granting an above-inflation increase, the GEPF aims to:

• Support Pensioners’ Buying Power: Higher pensions can help retirees manage essential expenses despite inflation.
• Sustain Fund Health: The GEPF Board carefully assesses investment performance and financial health before approving increases, ensuring the sustainability of future pensions.

4. Who Qualifies for the 6% Increase?

• Retired on or Before 1 April 2023: Eligible for a full 6% increase.
• Retired After 1 April 2023: Eligible for a proportional increase based on months receiving a pension by 31 March 2024.

This distinction allows newer pensioners to receive an adjustment that reflects their shorter time in retirement without compromising the fund’s overall financial integrity.

5. GEPF’s Commitment to Sustainable Increases

The GEPF prioritizes maintaining a balance between affordable pension adjustments and the financial health of the fund. Any increase above the standard stipulated in GEPF Law and Rules is only approved after considering the fund’s investment performance, financial health, and inflation impact on pensioners.

As of 2024, the Fund reaffirms its mission to provide a stable and dignified retirement for its pensioners. This 6% increase illustrates GEPF’s commitment to helping pensioners keep pace with inflation without compromising fund sustainability.

6. Contacting GEPF for More Information

If you have questions or need further assistance regarding the pension increase, reach out to GEPF through:

• Call Centre: 0800 117 669
• Email: enquiries@gepf.co.za
• Twitter: @GEPF_SA

This annual pension increase provides much-needed relief for GEPF pensioners amid economic challenges. By staying informed, pensioners can make the most of this increase and better manage their financial well-being.