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Answer
Can I continue to contribute to the Deferred Pension Scheme after I have left Eskom’s service?

No, unfortunately not. The South African Revenue Service prohibits continuing contributions by a person to an employer sponsored retirement scheme after the person is no longer employed by the employer. As soon as you leave the service, you are no longer an active member and contributions must cease. ​

What happens when I defer my pension to the EPPF Deferred Pension Scheme?

If you are an in-service member and leave your employer, you may transfer your benefit to the EPPF Deferred Pension Scheme. This means that you leave your pension benefit in the EPPF until your retirement date. The Deferred Pension Scheme allows you to leave your benefit in the EPPF while it attracts interest and grows. You will be able to retire from the Deferred Pension Scheme and access your benefit from the age of 55 years. You must retire from the Deferred Pension Scheme by no later than the age of 65 years.​

What are my options when I defer my benefit?

You have three options on deferment: 

  • Defer the full value of your benefit in the Deferred Pension Scheme; 
  • Take the maximum of the tax-free portion and transfer the balance to the Deferred Pension Scheme; or 
  • ​Take a cash refund equal to your accumulated member contributions (less tax – taxed at the rate applicable on withdrawal) and transfer the balance to the Deferred Pension Scheme. This option is only applicable to members who are retrenched before reaching the age of 55.​

When and how can I access my money in the Deferred Pension Scheme?

You may retire from the Deferred Pension Scheme anytime from the age of 55 years until 65 years. When you retire from the Deferred Pension Scheme you have the option to take up to one third of your benefit in cash. The balance must be used to provide you with a monthly pension from the EPPF. To begin drawing a pension from the Deferred Pension Scheme, you must complete an Application for Retirement Benefits Form. If you wish to receive your pension in a bank account outside South Africa, you must complete the International Banking Form , together with the Application for Application for Deferred Benefit Pension Form.​ Log in to our profile to download both forms.

How will I know the growth of my deferred benefit over time?

Each year we send deferred pensioners an Annual Deferred Pension Statement which reflects the growth of your benefit.  The Annual Statements are sent by post to deferred pensioners. If you change your postal and residential address, please ensure you advise us of the change. 


A rate of interest is declared by the Board of Trustees each quarter and applied to the Deferred Pension Scheme on a monthly basis. To view the rate of interest declared on the Scheme, please click here .​

What happens to my pension benefit if a divorce order is issued after I left the EPPF, but my benefit was deferred to the Deferred Pension Scheme?

If a divorce order was issued after you have already withdrawn from the EPPF, there is no pension interest left in the EPPF to be paid in terms of the Divorce Order.  Pension interest refers to a resignation benefit that a member would have been entitled to had he resigned on the date of divorce.  Because you have already withdrawn, the fund no longer holds pension interest on your behalf.  Pension interest becomes a pension benefit on withdrawal. Therefore, the EPPF will be unable to make any payment of pension interest as that would be acting in contravention of our rules and the Pension Funds Act of 1956, which prevent the Fund from making any deductions from a member's benefit if such a deduction is not in accordance with the Pension Funds Act read together with the Divorce Act.  
The non-member spouse can claim payment of his/her benefit in terms of the Divorce Order directly from the deferred pensioner.​

If you retire, the tax is payable as per the tax table below

Tax payable on retirement and severance lump sum benefits for 2016/2017
Taxable income(R) Rate of tax (R)
R0 – R500 0000%
R500 001 – R700 00018% of the amount exceeding R500 000
R700 000 – R1 050 000R36 000 + 27% of the amount exceeding R700 000
R1 050 001 and aboveR130 500 + 36% of the amount exceeding R1 050 000

 

 

Tax payable on Retirement & Death Benefits or Severance Benefits for 2016/2017 
Taxable income (R) Rate of tax (R)
0 – 500 0000% of taxable income
500 001 - 700 00018% of taxable income above 500 000
700 001 – 1 050 00036 000 + 27% of taxable income above 700 000
1 050 001 and above130 500 + 36% of taxable income above 1 050 000

 

Retirement, Death and Severance Benefits tax rates for the 2016/2017 tax year were sourced from the South African Revenue Services' website: Retirement, Death and Severance Benefits tax rates

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