Resignations based on retirement reform rumours
- Published: 12 October 2014 12 October 2014
RESIGNATIONS BY GOVERNMENT EMPLOYEES BASED ON RETIREMENT REFORM RUMOURS
The Department of Public Service and Administration (DPSA) and National Treasury (NT) issued a statement on 1 October 2014 to address the concerns that public servants have regarding pension rumours.
1. It has come to our attention that a number of public sector employees are resigning from their jobs, allegedly, as a result of the rumours that Government will no longer allow retirement fund members, from next year, to withdraw their pension/provident savings before retirement. These rumours are false.
2. Another false rumour, is that Government wants to nationalise pension and provident funds. Employees should not resign and risk unemployment because of these rumours and wrong information. Government has not introduced any laws which prevent employees from accessing their pension monies when resigning.
3. The Government Employees Pension Fund (GEPF) is a pension fund and the reforms coming into effect on 1 March 2015 do not affect Pension funds. The taxation law coming into effect next year in March will align and extend the current dispension to provident funds, and hence will not change the rules of the GEPF in any way.
4. Though Government encourages all members to preserve as much of their pension and provident funds for retirement when changing jobs; members of both provident and pension funds (e.g. the GEPF) will still be able to access accumulated savings when they change jobs after 1 March 2015. Preservation is still a proposal subject to discussion and consultation.
Download the full statement issued by DPSA and NT: Statement by DPSA & NT
For more information on the pension reforms read the NAPTOSA (Gauteng) article on this topic: click here