MEDIA RELEASE
Date: 15 October 2025
The GEPF implemented updated actuarial interest factors with effect from 1 October 2025. The factors are derived from the assumptions adopted in the Fund’s recent statutory actuarial valuation as at 31 March 2024. The implementation of the revised factors follows the completion of a consultative process with employee organisations (labour unions) as at 31 July 2025 as required by the GEP Law and Rules.
The revised factors have resulted in actuarial interest values (benefits value) that are on average 15% lower than those of the 2021 factors results. In effect, members will notice reduced estimated withdrawal benefits on their benefit statements, except for death and retirement benefits. The reduced estimates for all forms of early exits besides retirement are an indication of the current value of members’ interest/ benefits in the Fund, if they chose to exit the Fund before retirement.
Members who may be seeing a reduction in estimated withdrawal benefits of varying amounts (be it R100,000 or any amount, depending on a member’s profile), do not signify the disappearance of funds from the GEPF or members’ retirement savings. No funds have disappeared, and members’ benefits remain as promised in terms of the GEP Law and Rules.
The revised factors are applicable across all active member records, meaning the balances reflected in all components or pots (as per Two-Pot retirement system) will be recalculated and updated with the new actuarial interest values. Savings withdrawal benefits for members younger than 55 will be affected. All resignations, irrespective of service, will be affected. Any other exit where members leave with less than 10 years of total pensionable service will be affected. Pensioners’ benefits are not affected by these revised factors.
The implementation of the revised actuarial interest factors is a legislative requirement as per the GEP Law, and unions as representatives of active members were extensively consulted prior to the implementation. The implementation of the revised factors which have resulted in the reduction of benefit entitlement on some of the benefits to members does not amount to members’ funds being stolen nor the involvement of any other party.
Members are requested to consult GEPF official channels for more in-depth understanding of the topic such as the GEPF website, www.gepf.co.za, YouTube channel, @GEPF_SA as well as GEPF social media platforms on X, Facebook and LinkedIn.
Media Enquiries, please contact:
Matau Molapo
matau.molapo@gepf.co.za
079 1910 757
