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Government Employees Pension Law, 1996

Schedule 1 : Rules of the Government Employees Pension Fund

11. Payments in respect of pensionable service

 

11.1 In respect of service recognised as pensionable service in terms of rule 10.1 the following amounts shall be paid to the Fund—

 

11.1.1 by the member concerned, an amount calculated as:

 

R x N x S x D,

 

where:

 

R is the rate of seven and a half per cent;

 

N is the period of service recognised as pensionable;

 

S is the member's pensionable emoluments, on the day on which he or she became a member of the Fund or the date on which the period of his or her leave or suspension expires, or on the day on which he or she resumes duty after a period of secondment, whichever is applicable; and

 

D has the meaning as in rule 1.

[Rule 11.1.1 substituted by Notice No. 499 of 11 April 1997]

 

11.1.2 by the Government or the employer or the Government and the employer, an amount equal to the residue (if any) of the costs incidental to the recognition of such service as pensionable service, as determined by the Board after consultation with the actuary, in excess of the amount calculated in terms of rule 11.1.1.

 

11.2 In respect of previous service recognised as pensionable service in terms of rule 10.2, the member shall pay back to the Fund the benefit previously paid to him or her in terms of the said rule, with interest from the date on which the benefit was paid to him or her up to the date on which it is repaid to the Fund.

 

11.3 In respect of previous service recognised as pensionable service in terms of rule 10.3, the provisions of rule 11.2 shall apply mutatis mutandis.

 

11.4 In respect of service recognised as pensionable service in terms of rule 10.4, the member shall pay an amount calculated in accordance with the following formula:

 

N x S x F(X),

 

where:

 

N is the period of service recognised as pensionable service;

 

S is the member's pensionable emoluments on the date on which he or she applies for the recognition of such service as pensionable service; and

 

F(X) is a factor determined by the Board after consultation with the actuary.

 

11.5 The following further provisions apply with regard to payment in respect of the recognition of pensionable service in terms of rules 11.1 to 11.4 11.9 [sic]:

 

11.5.1 The member may, with the approval of the Board, redeem the amount that he or she must pay in respect of such a service recognition, in instalments as determined by the Board in which case interest shall be added to the outstanding amount of debt.

 

11.5.2 Notwithstanding any provision to the contrary in the rules—
(a) any amount still owing by a member in respect of additional pensionable service that has been recognised as pensionable service in terms of rule 10, shall, unless other arrangements are made with the Board, on the termination of his or her membership be deducted from any benefit payable to him or her; and

[Rule 11.5.2(a) substituted by Notice No. 499 of 11 April 1997]

(b) if a member referred to in subparagraph (a), redeem the costs of such additional pensionable service in instalments such pensionable service vests at any time only to the degree to which the costs thereof were redeemed on the date of termination of such member's service: Provided further that such pensionable service is vested in full if arrangements were made by the member to the satisfaction of the Board for the settlement of the outstanding amount of debt.

[Rule 11.5 amended by Notice No. 423 of 31 March 2004]

 

11.6 If additional pensionable service was recognised in respect of a member before the fixed date or the date determined in terms of section 14(1) or 15(1) of the Law, as the case may be, in terms of similar provisions as contained in rule 10, and the member has not redeemed the full costs thereof on the fixed date or date determined in terms of section 14(1) or 15(1) of the Law, as the case may be, the terms on which such an outstanding amount of debt would have been redeemed, are, notwithstanding the provisions of rule 11.5, taken over by the Board, without change except if such terms are changed with the consent of such member.

 

11.7 If additional pensionable service is recognised in terms of rule 10.5, no amount shall be payable to the Fund if the additional financial obligation on the Fund due to such recognition of service, is not in excess of a specific amount as calculated by the actuary. Such amount shall be an amount agreed upon after negotiations and agreement within the relevant bargaining structures of the Public Service.

[Rule 11.7 inserted by Notice No. 2252 of 23 June 2000]

 

11.8 The amount of any financial obligation on the Fund which exceeds the specific amount referred to in rule 11.7 shall be paid by the employer to the Fund.

[Rule 11.8 inserted by Notice No. 2252 of 23 June 2000]

 

11.9 In respect of NSF Service recognised as pensionable service in terms of rule 10.6(g)—

 

11.9.1 the total contribution required, as at date of recognition of the NSF service of a former member of a non-statutory force or service, in order to recognise the period of NSF Service referred to in rule 10.6(g) as pensionable service will be calculated as follows:

 

11.9.1.1 For those members who were active members of the Fund on 31 May 2000 the difference between the values calculated in accordance with 11.9.1.1.1 and 11.9.1.1.2 below, increased from 31 May 2000 to the date of recognition, with interest as determined by the Board after consultation with the actuary;

 

11.9.1.1.1 the actuarial interest of the former member of a non-statutory force or service as defined in rule 11.9.1.1.3 where the member's pensionable service will include the additional NSF Service referred to in rule 10.6(g);

 

11.9.1.1.2 the actuarial interest of the former member of a non-statutory force or service as defined in rule 11.9.1.1.3, where the member's pensionable service shall not include any additional NSF Service;

 

11.9.1.1.3 the actuarial interest of the former member of a non-statutory force or service for the purposes of Rule 11.9 only, as at 31 May 2000, shall be calculated in accordance with the following formula:

 

PS x Sal x NSF(X)

 

Where:

 

PS is the period of pensionable service as per Rule 11.9.1.1.1, Rule 11.9.1.1.2 or Rule 11.9.4 which ever is applicable, as at 31 May 2000 of the former member of a non-statutory force or service;

 

Sal is the pensionable emoluments as at 31 May 2000 of the former member of the non-statutory force or service;

 

NSF(X) is a factor determined by the Board after consultation with the actuary (Explanation: this will be factor that takes account of the actuarial liability of members as at 31 May 2000);

 

X is the former member's age as at 31 May 2000;

 

11.9.1.2 For members whose membership within the Fund had been terminated prior to 31 May 2000 the difference between the values calculated at their date of termination of membership of the Fund in accordance with 11.9.1.2.1 and 11.9.1.2.2 below, increased from their date of termination of membership of the Fund to the date of recognition of their NSF service, with interest as determined by the Board after consultation with the actuary:

 

11.9.1.2.1 the value of the benefit the former member of a non-statutory force or service would have been entitled to if the benefit included the additional NSF Service referred to in rule 10.6(g);

 

11.9.1.2.2 the value of the actual benefit, paid or payable to the former member of a non-statutory force or service.

 

11.9.2 The total contribution is divided into a portion to be paid by the employer and a portion to be paid by or in respect of the former member of a non-statutory force or service as follows:

 

11.9.2.1 the portion to be paid by or in respect of the former member of a non-statutory force or service shall be based on the formula:

 

Pensionable emoluments as at 31 May 2000 or date of earlier termination of membership of the Fund x 5% x NSF Service recognised as pensionable service in terms of rule 10.6 (g) with interest as determined by the Board after consultation with the actuary, the interest to be the same interest as per Rule 11.9.1;

 

11.9.2.2 the portion to be paid by the employer is the balance of the total contribution calculated in 11.9.1 after subtracting the portion to be paid by or in respect of the former member of a non-statutory force or service;

 

11.9.3 The period of NSF Service recognised as pensionable service in terms of rule 10.6(g) shall be reduced as a result of a reduction in the total contribution, in respect of that service, to make allowance for:

 

11.9.3.1 the value of any Special Pensions and/or Demobilisation Benefits already paid to the former member of a non-statutory force or service or beneficiary of a former member of a non-statutory force or service, where value refers to the sum of all benefits already paid in terms of the Special Pensions Act and for the Demobilisation Act, and/or;

 

11.9.3.2 the reduction in the portion payable by or in respect of the former member of a non-statutory force or service by any amount that the former member of a non-statutory force or service or the beneficiary of a former member of a non-statutory force or service chooses not to contribute.

 

11.9.4 The period of NSF Service that shall be recognised ultimately shall be calculated as the period of service that together with the non-NSF Service of the former member of a non-statutory force or service results;

 

11.9.4.1 For those members who were active members of the Fund on 31 May 2000, in an actuarial interest value, calculated in terms of rule 11.9.1.1.3, equal to the value calculated in 11.9.1 less any reduction in terms of 11.9.3.1 and less the value of any part of the member portion in 11.9.2.1 that the member or beneficiary, as the case may be, elects not to contribute;

 

11.9/4.2 For members whose membership within the Fund had been terminated prior to 31 May 2000, in a benefit equal to the value calculated in 11.9.1 less any reduction in terms of 11.9.3.1 and less the value of any part of the member portion in 11.9.2.1 that the member or beneficiary, as the case may be, elects not to contribute;

[Rule 11.9 inserted by Notice No. 423 of 31 March 2004]