Bad news for public servants hoping to retire early as GEPF lowers exit payouts
In a move that will not sit well with many public servants, the Government Employees Pension Fund (GEPF) has implemented updated actuarial interest factors,
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In a move that will not sit well with many public servants, the Government Employees Pension Fund (GEPF) has implemented updated actuarial interest factors, effective from October 1, 2025, which will reduce pre-retirement exit benefits by an average of 15%.
In a statement, the GEPF said the change is based on updated assumptions from the Fund’s most recent actuarial valuation, conducted as at March 31, 2024.
"The revised factors result in actuarial interest values that are, on average, 15% lower than those that would result from the 2021 factors.
"The extent to which individual members’ actuarial interest will differ between the 2021 and 2024 factors depends on their age and category (i.e., whether they are Service members or not)".
The fund added that the revised factors will be applied across all active member records, meaning the balances reflected in all components or "pots" will be recalculated.
Members resigning from the public service, as well as those exiting with fewer than 10 years of pensionable service, will be directly affected.
"All resignations, irrespective of service, will be affected. Pensioners’ benefits are not affected by these revised factors," the fund said.
"This statement is intended to reassure members that the implementation of the revised actuarial interest factors is a legislative requirement as per the GEP Law, unions as representatives of active members were extensively consulted, the implementation does not amount to members‘ funds being stolen, nor is the government involved in this process in any way, as incorrectly alleged on social media platforms".
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