Death before retirement

When an in-service member passes away, a lump sum equal to twice their annual pensionable salary is payable and distributed in terms of Section 37C of the Pension Funds Act.

A widow/widower’s pension of the first 60% of the in-service member’s potential pension is payable to the deceased member’s spouse. We calculate the pension as if the in-service member had remained in service until age 65, based on the current pensionable salary.

A child’s pension of 30% of the pension to which the in-service member would have been entitled if he/she had remained in-service until the normal retirement date, in respect of one eligible child. The children’s pension will increase to 40% in respect of two or more eligible children.

If there are no spouse’s or children’s benefits payable, a lump sum death benefit will be paid to the in-service member’s estate. This lump sum benefit will be the higher value between:

• A lump sum equal to the in-service member’s annual pensionable salary, plus 10% of the final average pensionable salary per year of pensionable service;
  Or
• Twice the in-service member’s annual pensionable salary.

Normal Retirement

The normal retirement age is 65 years, but in-service members may retire early from age 63 without penalties. This is subject to the employer’s conditions of service. The retirement benefit is based on 2.17% of your annual average pensionable salary over the last year before retirement, for each year of pensionable service.

Early Retirement

You may retire early after turning 55 years old. Your pension would be calculated through a pension formula, and then reduced by the penalty factor of 3.9% per year for each year before age 63 years.

Ill-health retirement

You may retire at any age because of ill health, provided that the Board of Trustees approves a recommendation by EPPF’s Medical Panel.
Your benefit is calculated based on your pensionable salary and pensionable service accrued up to the actual retirement date, plus 75% of the service that you would have been completed from that date to the pensionable age.

• Log into your profile to download the Beneficiary Nomination Form. Please make sure that you complete the Beneficiary Nomination Form in detail.
• Submit the signed form to us by email, post or hand deliver it to any of our offices. Click here for all locations and contact details.
• We recommend that you send posted forms via registered post so we can track your form.
• Contact our Call Centre to confirm receipt and capturing of your nomination form.

• You must apply for recognition of service within six months of rejoining the services of Eskom.
• On your return, you must complete a form to apply for recognition of previous service from your Human Resources Office.
• If the Board of Trustees approves your application, you must pay the full pension benefit that was paid to you back to the Fund. Interest will be charged at the rate determined by the Board from the date of rejoining and the date of repayment.
• Should you pay the full amount back to the Fund, your deemed start date will be adjusted accordingly.

• The Fund is notified of the divorce by the non-member spouse (applicant).
• The final divorce decree as granted by any court of law, is sent to the Fund’s Legal team for their confirmation on whether the divorce is legally binding on the Fund.
• The Fund’s Legal department advises on how the divorce benefits should be calculated as stipulated on the final divorce order.
• The Fund notifies the claimant of the outcome and sends the divorce application form (Form 3B) to the claimant for their completion.
• The non-member spouse is required to submit the divorce application form together with an original certified copy of ID, marriage certificate, proof of bank account details and proof of SARS tax reference number.
• The non-member spouse’s record is created for processing of the divorcer claim.
• The non-member spouse divorce settlement calculation is done in line with the Fund rules and time periods stipulated by the Pension Funds Act
• The tax directive is requested from SARS.
• The member is notified of the divorce claim and the impact on their pension benefit by email or telephone.
• The nett amount after tax deduction is paid to the claimant’s banks account. If the claimant opted for their benefit to be transferred to an external fund, payment is made directly to the Fund and provide the Fund with poof of payment.
• The non-member spouse payment letter and tax certificates are posted to the address provided.
• The non-member spouse payment letter and tax certificates is posted to the address provided.

Counselling

All members who are exiting the Fund must meet with a Retirement Fund Consultant. The Retirement Fund Consultant will provide them with the information they need to make an informed decision when withdrawing.

Withdrawal Application

The member, with the help of Human Resources or a Retirement Fund Consultant, must complete the claim form. This claim form is used to process the withdrawal benefit as per the member’s instruction. If previously divorced members are encouraged to submit their divorce documents to the Fund to prevent delays should the divorce be legally binding on the Fund.

Documents

All certified supporting documents requested on the application form must be provided to the Fund, together with the claim form before the exit date.

Last Contribution

EPPF awaits the final confirmation and the last contribution from the employer before starting the withdrawal process. The contributions are received by the employer by the 7th of the month after your exit date. The Earnings Yield Rate is also updated for the month. Thereafter the contributions are uploaded and the processing of the claim begins.

Calculation

The member’s final withdrawal calculation is done in line with the Fund rules.

Tax

The withdrawal benefit is sent to SARS to confirm the tax deductible.

Cash Lump sum

The net cash lumpsum after the deduction of tax from the cash lumpsum is paid out. Members who choose to transfer/preserve their benefit, may have the payment made directly to the institution they selected.

Letter
A payment letter detailing the lumpsum, tax and nett amount paid and the member’s IRP5 certificate is posted to confirm that the claim has been finalised.

Counselling

All members retiring from the Fund are required to meet with a Retirement Fund Consultant before their retirement date for a compulsory Benefits Counselling session. This session will provide you with the information you need to make an informed decision when retiring.

Retirement application

The member must complete the Application for Retirement form. This application form is used to process the pension as per the member’s instruction.

Documents

All documents requested on the application form must be provided to the Fund before the member’s retirement date. The documents that are required are:

• Deferred Benefit Pension Application Form 10
• Member’s certified ID copy
• Spouse’s certified ID copy (if applicable)
• Certified marriage certificate (if applicable)
• Certified birth certificates of children
• Final decree of divorce and settlement agreement (where applicable) if member had been
  previously divorced
• The member’s bank statement with bank stamp or confirmation letter from the bank (not older
  than 3 months)

Proof of tax details

Any form of proof that the member was a former Eskom employee (certificate of service, benefit statement older than 3 years, payslip etc.).

Calculation

The member’s final retirement calculation is done in line with the Fund rules.

Tax

The lump sum benefit calculation is sent to SARS to confirm the tax deductible.

Cash lump sum

The member is paid the nett cash lump sum value after tax clearance.

Monthly pension

The leftover monthly pension is then processed after approval of the member’s benefit lump sum. Once the leftover monthly pension has been approved, it will be sent through to the payroll department for payment.

Welcome letter

The member is sent a welcome letter providing them with their total fund credit value, lump sum benefits as per the member’s commutation option as well as their tax deduction (if applicable), monthly pension benefit and the tax certificate.

Pensioner card

The card is produced ands ent to members. The card allows them to get discounts at specific store or in specific regions.

Yes, you may. But you must submit your application before the age of 65.

The surviving spouse must be a spouse whom the deferred pensioner married prior to retiring from the Deferred Pension Scheme. If the deferred pensioner married after beginning to receive a pension from the EPPF, the surviving spouse will not qualify to receive a pension upon the deferred pensioner’s passing.

If there is no surviving spouse, but there is an eligible child, the child will receive a pension equal to 60% of the deferred pensioner’s pension at the date of death. If there are two or more eligible children, the percentage will increase to 100%.

To change your banking details when you relocate to another country, you must submit the following documents to us:

• Original, certified copy of your identity document or passport
• An original, completed, International Banking Form (IBF). The IBF must be completed by the bank to which you want to transfer your benefit, or by your foreign exchange service provider. Log in to your profile to download the IBF.
• Remember to also advise us of your change in address. Click here to update your address
  and other contact information on the Member Portal.
   

• You may withdraw or retire from the Deferred Pension Scheme.
• If you choose to withdraw, you can only do that before the age of 65.
• If you did not withdraw before age 55 then you may retire between the ages of 55 and 65. You can elect to start your pension anytime between the ages of 55 but no later than 65.
• To begin drawing a pension from the Deferred Pension Scheme, you must complete an Application for Retirement Benefits Form and to withdraw you must complete an Application for Deferred Benefit Withdrawal Form.
• If you wish to receive your pension in a bank account outside South Africa, you must complete the International Banking, together with the Application for Application for Deferred Benefit Pension. Log in to your profile to download both forms.

No, unfortunately not. The South African Revenue Service doesn’t allow 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 stop.

You have three options on deferment:

1. Defer the full value of your benefit in the Deferred Pension Scheme
   2. Take the maximum of the tax-free portion and transfer the balance to the Deferred Pension Scheme.
   3. In the case of a retrenchment, you may take a cash refund equal to your accumulated member contributions (minus 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.