Each year the Board of Trustees (“the Board”) of the Eskom Pension and Provident Fund (“the EPPF” or “the Fund”) determines an annual pension increase, in accordance with the Fund’s pension increase policy. It is also the Fund’s established practice to pay a once-off pensioner bonus.
The pension increase policy of the Fund is to target, but not guarantee, a pension increase on 1 January each year equal to the year-on-year increase in the Consumer Price Index (as published by Statistics South Africa). If the Fund’s investment performance over the period to the preceding 30 June is such that it cannot afford such an increase, the Trustees will grant a lower increase that can be afforded without placing a strain on the Fund.
Bonus Payment to Households for December 2018
The Board is pleased to announce that EPPF is in a position to pay a once-off bonus in 2018 and have taken a view that the bonus should progress towards an equal bonus for all, but also recognises that this process will take some time. Please note that the breakdown and calculations for the bonus payments will be included in member’s November payslip.
The bonuses will be payable to all household pensions as at 1 December 2018. For any pensions that commenced after 1 December 2017, the bonus will be pro-rated according to the number of months that the pension has been paid.
Pension Increase for 2019
The Board is further pleased to announce that a pension increase of 4% will be applicable to all pensions with effect from 1 January 2019. A communication with more detail on the increase will be included in member’s November payslip.
Pensions which commenced after 1 January 2018 will be pro-rated according to the number of months in the preceding year for which the pension has been paid by EPPF.
The Board of Trustees is hopeful that the bonuses and pension increases will be well received and will bring some financial relief for pensioners.
The Board 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!
Board of Trustees
Eskom Pension and Provident Fund