Minimum annual pension increase
On the recommendation of its Valuator, the EPPF Board approved a minimum pension increase for all pensioners of 5% with effect from 1 January 2022. This is in line with the Consumer Price Index (CPI) of 5% on 30 September 2021.
CPI top-up increase
In addition to the 5% increase, the Fund will carry out a CPI top up exercise for each pensioner to determine what your pension would have been if full CPI benchmarked increases were granted to you since January 2021*. If there is a shortfall, an additional increase (over and above the 5% increase), will be allocated to you up to a maximum of 3,7%, and is based on what the Fund can afford. Please note that this exercise will be carried out on an individual basis and the outcome is likely to be different for each pensioner. The additional increase, where applicable, will take effect from 1 January 2022.
Click here to view Pensioner Increase Explainer that further explains how the pension increase and the CPI top-up are determined.
*For this purpose, the review was conducted for the prior 20 years starting January 2001.
Pensioner Bonus: DECEMBER 2021
The Board was once again in a position to award a discretionary bonus in line with the established practice of the Fund where lump sum bonuses are paid each November. The Fund has increased the minimum pensioner bonus to R7 560 this year.
- Household receiving pensions equal to or greater than R3 500 per month = R7 560; and
- Household receiving pensions of less than R3 500 per month: = R7 560 + 100% x (R3 500 - pension pm)
The bonuses will be payable to all household pensions as of 1 December 2021. For any pensions that commenced after 1 December 2020, the bonus will be pro-rated according to the number of months that the pension has been paid.
The Board is in the process of reviewing the discretionary bonus structure for future years and will keep its members and pensioners informed of any new developments during the course of calendar year 2022.
The Fund would also like to take this opportunity to wish all our pensioners and their families a safe and wonderful festive season and a happy New Year!
Eskom Pension and Provident Fund