Why GEPF members may have less money to withdraw, following Fund's new actuarial valuation

Some members of the Government Employees Pension Fund (GEPF) may see changes on their next statement, applying to their withdrawal benefits.

They may have less money to withdraw, in line with updated actuarial interest factors implemented from 1 October.

Actuarial interest factors are used when the Fund must express a member’s earned future pension as a present-day lumpsum Rand amount, the GEPF says in a statement.

"When long-term expectations for investment returns rise relative to inflation, the money set aside today is expected to grow faster. In such an environment, less is required to be set aside now to meet the very same future pension promise."

Conversely, if expected returns fall or longevity improves materially, more may be required.

As Principal Executive Officer Musa Mabesa explains, this process takes place every three years.

The previous update to factors took effect on 1 November 2022.

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The update that went into effect this month (October 2025) does not change the Fund’s benefit promise or the way pensions at retirement are calculated, so members who retire continue to receive a pension for life based on service and final average salary.

The revised factors will be applied across all active member records, which means the balances reflected will be recalculated on the updated basis.

Exit benefits, apart from resignations, where members leave with less than 10 years of total pensionable service, will be affected. All resignations, irrespective of service, will be affected.

The benefits of those already on pension, are not affected by these revised factors.

To allow for this update, the Fund announced a temporary suspension of 2-pot withdrawals from 7-21 October.

During this time, members will not be able to submit new savings withdrawal applications through the self-service platforms. 

However, all other benefit payments and services will continue as normal, it said.

For more detail, listen to the interview audio at the top of the article