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NAPTOSA National News Flash 21 of 2014: Pension Rumours

Pension Rumours dispelled

National Treasury, in a statement issued on 9 July 2014, dispelled the rumours that from 2015 public servants will no longer receive gratuities upon retirement from the public service.

According to the statement, certain pension reforms will be effected on 1 March 2015. These reforms, however, impact on retirement savings pertaining to provident funds. The GEPF is NOT a provident fund, but a pension fund. Members of the GEPF will therefore NOT be affected by these pension reforms. In other words nothing changes for educators as far as pensions are concerned. Gratuities will still be paid to those educators who retire and qualify for such gratuities in terms of the GEPF Rules.

National Treasury also announced that further pension reforms are envisaged, but not for at least another 2 years and only after consultation with, inter alia, trade unions. Whether such future reforms will impact on the pensions of public servants, only time will tell. NAPTOSA will monitor developments in this regard and keep members informed.