Pensioners and beneficiaries FAQs

Pensioners and beneficiaries FAQs

Please complete a Consent to Receive Email Payslips and Correspondence form which is available via the member portal. Once you have completed the form, please fax or post it back to the EPPF. Click here to log on to the member portal and access the form.

The spouse’s pension is payable for the duration of your lifetime, regardless of whether you remarry or not.

Depending on the investment performance of the EPPF, the Board of Trustees may declare a bonus which is payable in December of that year. Pensioners are advised in December of each year whether a bonus is payable through a newsflash.

The Evidence of Survival (EOS) form is used by the EPPF to ascertain whether people in receipt of a pension from the EPPF, who live outside South Africa are still alive and are rightfully in receipt of a pension. EOS forms are sent out annually to pensioners living outside South Africa and pensioners have a few months in which to complete them from the date on which the form is sent to them.

The EPPF always advises pensioners of the opening and closing dates for EOS form submission. Should the EPPF not receive your form by the EOS submission closing date, your pension will be suspended until the form is received. Please contact the EPPF if you have not received an EOS form or log in to your profile to download the form.

There are various factors which contribute to your tax fluctuating:

In December there was a bonus paid so your tax deduction was different from other months;

In January there was a pension increase which also created a difference in tax payable;

In the February payroll medical aid contributions increased. Pensioners aged 65 years and older used to get a full medical aid rebate. However as medical aid contributions increase the taxable income decreases.

The new tax year begins in March. The Fund’s payroll system annualises tax based on the latest tax earnings and the last year’s tax tables. Since the Fund’s pension payroll runs in advance on the 1st of each month, new tax tables for the new tax year are always implemented in the April payroll. However, please note that the new tax tables implemented in April are implemented retrospectively to the March payroll as per tax changes announced in the budget speech. This means that your tax on the April payroll will include the March payroll deduction adjustments. Your tax should then stabilise from the May payroll onwards.

Section 18(2) of the Income Tax Act has been repealed. This means that pensioners who are 65 years and older are no longer granted the full medical aid rebate by the employer during the tax year. Instead they are granted the medical tax credits by the employer according to the number of dependants they have on their medical aid. The section of the Income Tax Act that deals with medical aid tax credits is section 6A of the Income Tax Act.

Medical aid medical aid expenses (such as medication, doctor’s consultations etc.) and tax credits in respect of expenses are granted during the assessment year of tax returns. Should it happen that the pensioner has paid too much tax due to medical expenses not being deductible by the employer; SARS will refund the excess to the pensioner.

Medical aid contributions and medical expenses are granted in terms of section 6B of the Income Tax Act.

The Medical Scheme Fees Tax Credit for individuals is a credit which applies in respect of contributions paid by the pensioner who has a taxable income up to the last day of the tax year to a registered medical scheme. The amount of credit is based on the following values per month in the year of assessment in respect of which the contributions were paid in respect of the pensioner, the pensioner’s spouse and any other dependants.

 

For the latest Medical Schemes Fees Tax Credit, click here.

The employer’s contribution is not disclosed on the payslip but it is disclosed on the tax certificate under the deduction code 4493. The pensioner’s own medical aid contributions are disclosed under code 4005. Both of these amounts are added to form the total medical aid contributions, which is listed under code 4497, the medical aid tax credits are disclosed on code 4116, the medical aid expenses will be disclosed on code 4120 as a zero value since EPPF is not privy to pensioner’s expenses so the medical expenses credit will be granted by SARS.

SARS gets this information when the Fund submits the tax certificates on the pensioners’ behalf during the employer annual submission time.

For taxable income rates, rebates and tax thresholds applicable to individuals for each financial year, visit the South African Revenue Services’ website: 2017/2018 taxable income rates on www.sars.gov.za.

Yes, you are still obliged to submit your returns as a confirmation of the information submitted by the employer on your behalf. In your instance, the EPPF represents the employer as the provider of a monthly income.

An AA88 is a garnishee order issued to the employer (the EPPF) against you by SARS for monies owed by yourself to SARS. Monies owed are usually due to non-submission of tax returns and non-payment of tax owed. An AA88 was previously referred to as an IT88.

When the employer or the EPPF receives this garnishee order it is required by law to comply and deduct the amount owed to SARS from your pension and pay it over to SARS on your behalf. This might affect your other deductions, as a SARS garnishee order takes precedence over other deductions.

Please contact your nearest SARS office to resolve your outstanding tax issues. You can contact SARS on 0800 00 72 77.

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.

Pensioners and beneficiaries Procedures Forms fAQs calendar