Increase of 4% for all pensions from 1 January 2023
The EPPF Board has approved an increase of 4% for all pensions from 1 January 2023:
- The increase will reflect in your 1 January 2023 pension.
- The increase will reflect in your December 2022 payslip.
People who began receiving pensions from 1 January 2022 will receive prorated increases (according to the number of months their pensions have been paid).
Pension bonus of R8 150,00 per household
The EPPF Board has also approved a flat pension bonus of R8 150,00 per household:
- The bonus will be paid with your 1 December 2022 pension.
- The bonus will reflect in your November 2022 payslip.
People who began receiving pensions after 1 December 2021 will receive prorated bonuses (according to the number of months their pensions have been paid).
The increase and bonus are determined after the annual actuarial valuation
The Fund does an annual actuarial valuation when the actuary compares the assets and liabilities of the Fund. These valuations are necessary to assess the long-term sustainability of the EPPF as a defined benefit pension provider. Following the latest actuarial valuation, the EPPF Board approved an increase of 4% for all pensioners effective from 1 January 2023.
Pension increase balances inflation with Fund sustainability
The long-term objective of the EPPF Board when considering pension increases is to assist pensioners. The EPPF aims to award increases that match the rate of inflation as measured by the Consumer Price Index (CPI). However, this must tie to the sustainability of the EPPF.
And at the beginning of this year, the EPPF carried out an inflation increase ‘catch up’ to adjust pensions for people who had received increases that were not in line with CPI over the past 20 years.
Caring for pensioners remains an EPPF priority
The EPPF Board continues to find ways to support pensioners during these challenging financial times and the EPPF is in the process of a pension increase policy review. We’re speaking to you during our member engagement sessions and will communicate the outcome once the process has been completed.
The EPPF team