Answer
What is the status of the surplus redistribution project for former members?

It is to be noted however, that the fact that the Fund had no distributable surplus, does not mean that the Fund is in financial difficulties. As it were, 30 June 2003 (the EPPF's surplus determination date) coincided with one of the worst investment periods in South Africa in many years and any surplus that the EPPF may have had before that date, was severely affected, as in many other funds. While the EPPF had no distributable surplus on 30 June 2003 for the purposes of the surplus redistribution legislation, in actuarial terms it was and still is fully funded and able to match its financial liabilities with corresponding assets.​

What can I do with my benefit when I withdraw from the EPPF?

i. Transfer a part or the whole benefit to another approved fund
You may transfer your full benefit, or a portion thereof, to another approved fund in South Africa. Approved funds are another employer's pension or provident fund, a preservation pension fund, preservation provident fund or a retirement annuity.
All transfers to another approved fund in South Africa are tax-free. You will only be taxed on that portion which is taken as cash and is above the tax-free threshold.
ii. Deferring a part or the whole benefit to the EPPF Deferred Pension Scheme
You may transfer your full benefit, or a portion thereof, to the EPPF's Deferred Pension Scheme.
You have three options on deferment:
• Defer the full value of your benefit in the Deferred Pension Scheme;
• Take a maximum of R25 000 of your total cash 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.
Each year, the EPPF will send you a Deferred Benefit Statement, which advises you of the rate of growth of your benefit in the Deferred Pension Scheme.
iii. Taking the entire benefit in cash
You may elect to take your entire benefit in the EPPF in cash. The first R25 000 is tax-free. SARS will tax the balance of the withdrawal amount at a marginal tax rate.​

What happens if I withdraw my benefit and want to place it in a retirement funding vehicle overseas?

You may not transfer your benefit directly from the EPPF to another fund outside South Africa. If you wish to preserve your benefit in another retirement investment vehicle outside South Africa, you must withdraw the benefit and take your exit benefit in cash and then invest in another retirement funding arrangement outside South Africa.​

What happens if I leave the service of the employer and defer my pension in the Deferred Pension Scheme and then return to the service of the employer?

If at any point you return to the service of Eskom or a participating employer in the EPPF after having deferred your benefit in the EPPF Deferred Pension Scheme, the benefit in the Deferred Pension Scheme will remain separate and will be retained there until you retire from the EPPF. 

When returning to the service of Eskom or a participating employer, you will rejoin the EPPF as a new member and your contributions will be held separately from the Deferred Pension Scheme. When you retire from the EPPF, you must also retire from the Deferred Pension Scheme.​

How can I enhance my benefit in the EPPF?

If you wish to enhance and increase your benefit in the EPPF, you may make additional contributions to the Additional Voluntary Contribution (AVC) Scheme. Additional contributions to the AVC Scheme can be made monthly, once-off or on an ad-hoc basis, as and when you are able to make the additional contributions. 
You may increase or decrease your contributions to the AVC Scheme at any time. 
Additional contributions must be deducted from your salary through your payroll department and may not be deposited directly into the EPPF's account. 
All contributions made to your pension fund will be tax deductible up to a maximum of 27.5% or a total rand value of R350 000 a year.
The EPPF sends members who contribute to the AVC Scheme a tax certificate each year, in respect of their contributions. The certificate reflects the contributions, interest and bonuses, if any, earned. Interest on the Scheme is declared by the Board of Trustees on a quarterly basis. 
Click here​ for the updated interest rates. 
Your benefit in the AVC scheme is added to the calculation of your benefit on withdrawal, retirement or death and increases the value of your benefit. 
If you wish to transfer a benefit from a previous employer into the Fund when you join the Fund, this benefit is also allocated to your AVC Scheme.​

What happens if I fall ill and can no longer work?

If you become permanently or physically disabled, or become incapacitated and are no longer able to work, you may go on ill-health retirement, subject to the recommendation of the EPPF’s Medical Panel and the approval of the Board of Trustees. 

The benefit on ill-health retirement is calculated using the retirement benefit calculation formula of “Final Average Salary x Years of service (calculated in months) x Pension Rate” as follows: 

• The service portion of the formula is based on pensionable service accrued up to your actual date of ill-health retirement; plus 
• 75% of the service that would have been completed from the date of the ill-health retirement to the normal retirement date. If your ill-health retirement was due to a pre-existing condition which you had before joining the employer and the EPPF, this portion of the benefit will be reduced to 50% of the service that would have been completed from the date of the ill-health retirement to the normal retirement date. ​

What happens to my pension benefit if I divorce?

If you have ever been divorced or get divorced in future, you pension fund benefit may be impacted. When you get divorced, the settlement reached around the division of your estate, including the pension interest is between the two parties and is reflected in the divorce order.  If your former spouse claims a percentage of your pension the claim against your Fund benefit is a percentage determined in the settlement reached. 
You as the member of the EPPF, or your non-member former spouse can advise the EPPF of the divorce order.  The following documentation must be provided to the Fund on submission of the claim: 
• An original, certified divorce order; 
• The claimant’s bank details (an original bank statement or a letter from the bank with a bank stamp; 
• An original certified copy of the claimant’s identity document; 
• A completed Form 3B, which can be obtained from here 

When all documentation is completed and received by the EPPF, the divorce order is ratified by the EPPF’s Legal and Technical Services Department, the Fund pays within 60 days of receipt of all complete documentation. 
The deduction of the pension interest reduces your benefit in the EPPF from the date of payment of the pension interest and this also leads to an adjustment of your Deem Start Date (your date of joining the Fund). 
All your pension benefits will therefore be calculated using your adjusted deem start date and taking into account the reduced benefit.  This means that all you benefits i.e., resignation, ill-health, death benefits will now be calculated using the adjusted Deem Start Date.​

What is the tax payable if I withdraw or retire?

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

TAX PAYABLE ON WITHDRAWAL LUMP SUM BENEFITS FOR 2018
R0 – R25 0000%
R25 001 – R660 000R18% of the amount exceeding R25 000
R660 001 – R990 000R114 300 + 27% of the amount exceeding R660 000
R990 000 and aboveR203 400 + 36% of the amount exceeding R990 000
TAX PAYABLE ON RETIREMENT AND SEVERENCE LUMP SUM BENEFITS FOR 2018
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

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