The two-pot retirement system allows people to withdraw funds from their savings pot.
Members are advised to update and verify their personal information to ensure a smooth transition and avoid delays in processing claims and withdrawals
This includes updating personal and contact information, verifying banking details, and ensuring that their information with the GEPF matches the information at Home Affairs.
With the introduction of a significant reform to South Africa’s retirement savings landscape, a new two-pot retirement system will become operational on September 1. This system divides retirement savings into three distinct pots:
The Vested Pot: This pot includes all accumulated retirement savings up until August 31.
The Savings Pot: This pot consists of one-third of retirement contributions made after September 1.
The Retirement Pot: This pot comprises two-thirds of retirement contributions made after September 1.
Each pot is governed by its own specific set of regulations, which expatriates must thoroughly comprehend.
“Make sure that the Government Employees Pension Fund (GEPF) has your correct bank details registered in your own name because banking information must pass validation before any payment can be made. It is also important to ensure that you are in good standing with Sars, as tax directives have to be issued by Sars for any payment the GEPF makes to a member,” stated GPAA.
The agency advised that in order to ensure seamless withdrawal requests to the GEPF, members must ensure that your banking information, currently provided by their employer, is up to date. If salary payments are not being deposited into personal accounts, it is crucial to update banking details with the employer. The GEPF can only make payments to the member’s own account.
“Two-pot retirement system withdrawal application will be done through GEPF self-service app or portal, meaning that members must download and register on the app if they have not done so to enable them to withdraw from the two-pot. Members without smartphones or those struggling with the GEPF self-service app or portal must contact their nearest GPAA regional offices for assistance. Our regional offices are equipped to help you with any issues you may encounter,” stated GPAA
Benefit statements will be available on the GEPF self-service app and portal from September 1, 2024.
Members can use the app or portal to apply for withdrawals under the two-pot system. Those without smartphones or facing difficulties with the app or portal can contact their nearest GPAA regional office for assistance.
The Mercury
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