Deferred Pensioners

All in-service members who exit the EPPF before turning 55 years may choose to transfer their whole Pension Fund value into the EPPF’s Deferred Pension Scheme. Alternatively, the members can take a maximum of the tax-free amount (currently R25 000) in cash and defer the balance in the EPPF’s Deferred Pension Scheme. 

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Deferred Pensioners

All in-service members who exit the EPPF before turning 55 years may choose to transfer their whole Pension Fund value into the EPPF’s Deferred Pension Scheme. Alternatively, the members can take a maximum of the tax-free amount (currently R25 000) in cash and defer the balance in the EPPF’s Deferred Pension Scheme. 

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Power Talk - December 2010


Pensioner Talk - December 2010


Power Talk - May 2010


Pensioner Talk - July 2009


Pensioner Talk - April 2009


Power Talk - March 2009


Power Talk - January 2009


All in-service members who exit the EPPF may choose to leave a portion of their whole benefit in the EPPF’s Deferred Pension Scheme until retirement and become deferred pensioners of the EPPF.

Deferred pensioners may retire from the Deferred Pension Scheme and access their benefit from age 55 years and must retire from the Deferred Pension Scheme by age 65 years.

Deferred Pensioners as at 30 June 2020

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How do I change my personal details?

  • Submit your change of details to the EPPF in writing by post, email, or by logging onto our member portal.
  • Please provide your unique number, the previous details, and the new details to be updated.
  • The EPPF will send confirmation of the change of your details either by SMS or in writing.
  • Click here to submit your change of details via the website or click here for EPPF postal details.

How do I update my beneficiary nomination?

  • Log in to your profile to download the Beneficiary Nomination Form. Please make sure that you complete the Deferred Pensioner Beneficiary Nomination Form in detail.
  • Submit the original signed form to us by post or hand deliver it to our head office in Bryanston Johannesburg. Alternatively, you may deliver the documents at either of our regional offices – click here for contact details.
  • We recommend that you send posted forms via registered post to enable tracking of the form.
  • You may contact our Call Centre to confirm receipt and capturing of your nomination form.

How do I request my benefit balance in the Deferred Pension Scheme?

  • The EPPF sends your Deferred Pension Scheme statements annually between March and April by post and/or e-mail.
  • You may also register and login to your profile on this website to access your statements from the website.
  • If you wish to begin to receive your statement and EPPF correspondence by email, click here to log on to the member portal and download the Email Consent Form.
  • If you wish to receive prior statements, please call the EPPF Call Centre or click here to submit your request online.

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

You may retire from the Deferred Pension Scheme anytime from age 55 to 65 years.

  • Complete the Application for Deferred Benefit Pension Form. Log in to your profile to download the form.
  • The form must be completed in original ink and have an original bank stamp.
  • Please contact us if you require assistance to complete the form.
  • If you leave or have left South Africa and wish to receive your pension in a bank account outside South Africa, you must also complete the International Banking log in to your profile to download the form.

What must my family do in the event of my passing before accessing my Deferred Retirement at age 55?

  • Your next of kin must contact us and complete a Death Benefit Form.
  • The original form must be submitted to the EPPF, together with the certified copy of original death certificate; and certified copy of original ID of the deceased’s member, spouse’s ID, marriage certificate; and bank details (original bank statement) of qualifying beneficiaries and their certified copy(s) of original IDs and the certified copy of original marriage certificate/proof of marriage for spouse.
  • Qualifying beneficiaries may receive a portion of a lump sum.
  • The death benefit is payable subject to the provision of Section 37C of the Pension Funds Act of 1956.
  • We have a period of 12 months in which to conduct the Section 37C investigations and for the Board of Trustees to conclude the determination on the distribution of your benefit to qualifying beneficiaries.

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, together with the Application for Application for Deferred Benefit Pension. Log in to your profile to download both forms. Please note that you cannot access your funds for any reason before the age of 55.

Would my deferred benefit be affected in the event of a divorce?

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 become 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 the rules of the EPPF 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 I die as a deferred pensioner, will my spouse receive a monthly pension?

If you are married at the time of retirement, your spouse will receive a monthly pension upon your demise. However, if you marry after retirement, your spouse will not qualify for a monthly pension.

Can I change my mind and access my funds after deferring my pension before 55 years?

No, once a decision is made its irreversible. Deferred members cannot access their funds for any reason before the age of 55.

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.

For Retirement, Death and Severance Benefits tax rates, go the South African Revenue Services’ website: Retirement, Death and Severance Benefits tax rates, on www.sars.gov.za.

2021

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All in-service members who exit the EPPF may choose to leave a portion of their whole benefit in the EPPF’s Deferred Pension Scheme until retirement and become deferred pensioners of the EPPF.

Deferred pensioners may retire from the Deferred Pension Scheme and access their benefit from age 55 years and must retire from the Deferred Pension Scheme by age 65 years.

Deferred Pensioners as at 30 June 2020

Normal Retirement

The EPPF’s normal retirement age is 65 years. After this age, membership to the Fund ceases. The benefits are based on a defined formula which takes into consideration the years of service, annual pensionable salary over the past 12 months before retirement, and an actuarial factor. 


Early Retirement

An in-service member may take early retirement after reaching age 55 years subject to the employer’s approval. The benefit is a pension calculated in terms of the defined formula noted above. However, a reduction factor of 3.9% per year for each year before age 63 years will be applied. In addition, taking an early retirement from age 63 to age 65 means that there won’t be any reduction factor applied to a pension benefit. 

Ill-health retirement

An in-service member may retire at any age as a result of ill-health, provided that the Board of Trustees approves a recommendation by the EPPF Medical Panel in this regard. The benefit is calculated by making provision for a pension based on the in-service member’s pensionable salary and pensionable service accrued up to the actual retirement date plus 75% of the service that would have been completed by the in-service member from that date to the pensionable age.

Death benefits before retirement

On the death of an in-service member, a lump sum equal to twice the member’s annual pensionable salary is payable and distributed in terms of the provisions of Section 37C of the Pension Funds Act.

Plus

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. The pension is calculated as if the in-service member had remained in service until age 65, based on the current pensionable salary. 

Plus

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.

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 benefit will be paid to the in-service member’s estate equal to the greater of:

- 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.

Death after retirement

On the death of a pensioner, a lump sum equal to R3000 is paid to the surviving spouse or the estate;

Plus

A pension to the surviving spouse equal to 60% of the deceased pensioner’s pension at retirement before commutation, including any subsequent increases;

Plus

A further pension of 30% (for one eligible child) or 40% (for two or more eligible children) of the deceased pensioner’s pension at retirement before commutation, including any subsequent increases, in respect of any eligible children.

If there is no spouse’s pension payable, the percentage in respect of a single eligible child is increased to 60% of the deceased pensioner’s pension at retirement before commutation, including any subsequent increases. For two or more eligible children, the total percentage is increased to 100% of the deceased pensioner’s pension at the time of retirement before commutation, including any subsequent increases.

If there are no spouse’s or children’s benefits payable, a benefit equal to the excess amount of the lump sum, as specified below, over the total benefits paid to the pensioner until the time of death is paid to the estate. The lump sum comprises the following:

Plus

The greater of the two following calculations:

i. Twice the annual pensionable salary at retirement, less the pension benefits received since retirement;

Or

ii. The annual pensionable salary at retirement plus 10% of the final average pensionable salary per year of pensionable service, less pension benefits already received. 

Death before retirement from the Deferred Pension Scheme

If a deferred pensioner passes away before drawing a retirement from the Deferred Pension Scheme, the lump sum benefit in the scheme (transfer value, plus interest) will be allocated to his/her beneficiaries in terms of Section 37C of the Pension Funds Act. This means that the EPPF will conduct an investigation to verify whether the deferred pensioner had legal dependants (such as a spouse whom he/she married before deferring the benefit; minor children or adopted or posthumous children), or factual dependants (such as parents or a family member who is financially dependent on the deferred pensioner). The EPPF has up to 12 months to investigate and make a determination on the distribution of the benefit. If the deferred pensioner has no dependants, the benefit will be paid to the deferred pensioner’s estate. No further benefit will be payable from the EPPF. Death after retirement from the Deferred Pension Scheme ‍If a deferred pensioner passes away after retiring from the Deferred Pension Scheme, the following benefits will be payable:

  • A pension equal to 60% of the current pension at the date of death;

Plus

  • A further 30% of the pension if there is an eligible child (under 21 years), and an additional 10% if there are two or more eligible children.

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%. If a deferred pensioner passes away within 5 years of their commencement date then the pension that would have been payable over the first 5 years of the retirement shall be paid as a lumpsum in accordance to section 37C of the Act

Death before retirement from the Deferred Pension Scheme

If a deferred pensioner passes away before drawing a retirement from the Deferred Pension Scheme, the lump sum benefit in the scheme (transfer value, plus interest) will be allocated to his/her beneficiaries in terms of Section 37C of the Pension Funds Act. This means that the EPPF will conduct an investigation to verify whether the deferred pensioner had legal dependants (such as a spouse whom he/she married before deferring the benefit; minor children or adopted or posthumous children), or factual dependants (such as parents or a family member who is financially dependent on the deferred pensioner).

The EPPF has up to 12 months to investigate and make a determination on the distribution of the benefit.

If the deferred pensioner has no dependants, the benefit will be paid to the deferred pensioner’s estate.

No further benefit will be payable from the EPPF.

Death after retirement from the Deferred Pension Scheme

If a deferred pensioner passes away after retiring from the Deferred Pension Scheme, the following benefits will be payable:

  • A pension equal to 60% of the current pension at the date of death;

Plus

  • A further 30% of the pension if there is an eligible child (under 21 years), and an additional 10% if there are two or more eligible children.

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%.

If there is no surviving spouse and there are no eligible children, the pension will cease at the date of the deferred pensioner’s passing.

Withdrawal benefits

Withdrawal due to voluntary resignation, abscondment or dismissal

In case of a withdrawal benefit due to resignation, abscondment or dismissal a cash benefit is payable. This is the prescribed minimum benefit in terms of the Pension Funds Second Amendment Act.

The benefit is the greater of the following calculations:

i The capital value of the member’s accumulated past contributions plus interest after December 2001. The interest rate must compare reasonably with the actual rate of investment return, net of fees and costs that the EPPF has earned on its assets;

Or

ii Fair Value – the Fair Value pension is the amount of the pension that an in-service member has earned for past service up to the date of leaving the EPPF, based on the in-service member’s pensionable salary at the date of leaving the EPPF. The capital value of the amount is calculated using financial assumptions, approved by the Registrar of Pension Funds.

Withdrawal due to retrenchment before age 50

In the event of a retrenchment of an in-service member, the benefit payable will be equal to the greater of:

- The benefit payable on withdrawal due to voluntary resignation, abscondment or dismissal;

Or

iii Third calculation - In the event of a negotiated cash settlement or retrenchment of a member, a benefit of three times the member’s own annual contributions becomes payable. The EPPF must then pay to the member the greater of the first, second or third calculations.

Withdrawal due to retrenchment after age 50

If an in-service member has 10 years continuous service, he/she qualifies to receive a pension instead of a lump sum benefit, as approved by the employer. The employer will compensate the EPPF accordingly.

Deferred pension option

An in-service member may, instead of taking a cash benefit, become a deferred pensioner and may be granted a benefit equal to the actuarial value, as determined by the actuary, in respect of completed service. The deferred benefit reverts to the deferred benefit scheme and may only be accessed from age 55.

Pre-Retirement Counselling

All members exiting the Fund are required to meet with a Retirement Fund Consultant (RFC) six months before their exit. The purpose of the counselling is to assist and provide you with information needed to make an informed decision when retiring. The RFC will also guide you as to what is required in the completion of the Retirement application form.

Retirement application

The member with the help of Human Resources (HR) must complete the application form.

This application form is used to process the pension as per the member’s instruction.

If previously divorced, members are encouraged to submit their divorce documents to the Fund to prevent delays in processing as the divorce documents are to be reviewed by the Fund’s legal team.

Documents

All documents requested on the application form must be provided to the Fund before the member’s exit where the quality assurance pertaining to the documents can be completed. These can be provided electronically.

Uploading

The retirement application together with the documents are securely uploaded to EPPF’s system.

Last Contribution

The EPPF will wait for the final confirmation and the last contribution. The contributions are received from the employer by the 7th of the month after your retirement and once allocated. Thereafter, the applicable interest rates are loaded at which time the claim processing commences.

Calculation

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

Tax

The retirement calculation is sent to SARS to confirm the tax deductible on the benefit.

Cash lump sum

The member is paid the Nett cash lumpsum value if he/she has opted for that.

Monthly Pension

The arrear monthly pension is loaded along with any deductions as indicated by the member. Thereafter, the pension will run monthly by means of the EPPF’s payroll system.

Letter

The member is sent a welcome letter providing them with their monthly pension value and the tax certificate.

Pensioner Card

The card is produced and posted to members which enables them to get discounts, this could be store or region specific.

Click here to download Claim Process


Counselling

All members exiting the Fund are required to meet with a Retirement Fund Consultant before their exit date for a Benefits Counselling session which is compulsory. This will provide them with the information they need to make an informed decision when retiring.

Retirement application

The member must complete the application 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 as follows:

  • Deferred Benefit Pension Application Form 10
  • Certified ID copy of the member
  • Certified ID copy of spouse (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).

Uploading

The retirement application together with the documents are securely uploaded to the EPPF’s administration system.

Calculation

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

Tax

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

Cash Lumpsum

The member is paid the Nett cash lumpsum value after tax clearance.

Monthly Pension

The arrear monthly pension is then processed after approval of the member’s benefit lump sum. Once the arrear 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 and posted to members which enables them to get discounts, this could be store or region specific.

Click here to download Claim Process

Counselling

All members exiting the Fund are required to meet with a Retirement Fund Consultant upon their exit. This 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 an RFC 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.

Uploading

The withdrawal claim form together with the supporting documents are securely uploaded to the EPPF’s administration system.

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 commences.

Calculation

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

Tax

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

Cash Lump sum

The Nett cash lumpsum after the deduction of tax from the cash lumpsum is paid out. Members who elect to transfer/preserve their benefit 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.

Click here to download Claim Process

The Fund gets notified of the death by a family member.

The applicant needs to complete a death application form and provide the deceased’s tax number.

The Fund uploads the application form and documents are securely loaded onto the EPPF’s administration system.

The member’s death lumpsum benefit is calculated and sent to SARS to confirm the tax deductible.

Once the tax is finalised the calculated death lump sum is referred to the Fund Social workers to perform the Section 37 C of the Pension Fund’s Act dependency investigation.

The Benefits Committee puts together a recommendation regarding the distribution of the lump sum death benefit for the Trustees to review and sign.

NB – the law allows this process to take place for about 12 months to ensure a proper investigation is done to identify beneficiaries.

Click here to download Claim Process

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 opinion on whether the divorce is legally binding on the Fund.

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 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 divorce application form together with the supporting documents are securely uploaded to the EPPF’s administration system.

The non-member spouse record is created for processing of the divorcer claim.

The non-member spouse divorce settlement calculation is done in accordance with the Fund rules.

The tax directive is requested from SARS.

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 bank’s 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 is posted to the address provided.

Click here to download Claim Process

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.

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.

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.

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, together with the Application for Application for Deferred Benefit Pension. Log in to your profile to download both forms. Please note that you cannot access your funds for any reason before the age of 55.

To change your banking details when you relocate to another country, you must submit the following documentation 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.

If you are married at the time of retirement, your spouse will receive monthly pension upon your demise. However, if you marry after retirement, your spouse will not qualify for a monthly pension.

No, once a decision is made its irrevocable. Deferred members cannot access their funds for any reason before the age of 55.

For Retirement, Death and Severance Benefits tax rates, go the South African Revenue Services’ website: Retirement, Death and Severance Benefits tax rates, on www.sars.gov.za.

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