The Government Employees Pension Fund (GEPF) has rejected reports that it has run out of funds hence it temporarily suspended applications of savings withdrawal from the two-pot retirement system for the next 10-days.
The two-pot retirement system was enacted in the country in September last year, following the enactment of the Revenue Laws Amendment Act 12 of 2024.
The fund spokesperson Smanga Selemeni told YOUFM Newshour that the suspension was because of the requirement by the GEPF law of 1996 that at least after every three years, “it must undergo a process of valuation which will establish the financial wellness of the fund and to determine benefits of the members.”
He defended the suspension saying it is necessary to allow the fund to update its systems in line with the recently implemented actuarial factors used to calculate members’ benefits.
“The last valuation was done in 2021, which expired in 2024 which compelled another valuation to be implemented as of October 1, 2025.
For the funds to effect the changes on the system, the new actuarial interest which is used when people resign or withdraw from the two-pot system needed to be updated.
To do that the fund needs to go into each members’ profile (1.2 million plus members’ profile) to update those benefits (the resignation benefits and the withdrawal outside the retirement benefit), now because the current actuarial interest became effective on October 1, 2025.
Our IT section requested not more than 10-days to update each members’ benefit using the 2024 actuarial interest for those benefits like resignation and outside retirement benefit,” said Selemeni.
The GEPF said that its App used by the members to apply for the withdrawal from the two-pot retirement system has been disabled (greyed-out) dismissing allegations that it has run out of funds.
“It is not true at all, the GEPF is financially healthy in the medium and long term.
Because part of that valuation results, regarding the financial wellness of the GEPF, it tells us that the GEPF is 119% funded which is more than enough.
That means for a member of GEPF to be comfortable and sleep peacefully, we have R1.19c for each R1 that we owe to our members and pensioners.
That’s what 119% funding means to a member.
So, it is unfounded that this suspension is because of GEPF running out of funds,” explained the spokesperson.
Selemeni said that the claims lodged before the suspension date of October 07, will undergo normal processes for consideration.
“What it means is that, if a member had applied before today, his/her application is going through an internal process to be paid and not affected by the suspension.
Unfortunately, members will not be able to lodge new applications to withdraw from the two-pot retirement system from today, up until the suspension is lifted, but all other services will be processed as usual unaffected by the suspension,” said Selemeni.
The GEPF is hopeful that the 10-days deadline set by its technicians will be reached timeously.
The fund said that it had spent more than R6 billion in the system in the 2024/2025 financial year which ended in March this year.
