GEPF pensioners to get a 5.5% increase

The Government Employees Pension Fund (GEPF) has announced that its pensioners will receive an annual pension increase of 5.5% as of 1 April 2022.

This pension increase is based on the 5.5% inflation rate for the 12 months ending November 30, 2021 thus making the increase equal to 100% of the Consumer Price Index (CPI) and higher than the 75% of Consumer Price Index (CPI) provided in terms of GEPF rules.

Pensioners who retired on or before 1 April 2021 are to receive the full increase of 5.5 % as of 1 April 2022. Pensioners who retired after 1 April 2021 are to receive a proportionate increase based on the number of months they have received pension by 31 March 2022.

In a press release, the GEPF says it has granted this increase to enable pensioners to keep up with rises in inflation. These increases are based on the affordability of the fund at the given time. An affordable increase can be granted without placing a strain on the sustainability of the fund including current needs and future financial health of the fund to continue paying benefits that are promised to our members.

The GEPF says that, when setting the pension increase, it considers:

• The investment returns earned over the year,

• The level of inflation over the same period,

• How both relate to the assumptions adopted in the statutory valuations and more importantly,

• How the increase will impact the financial position of the fund.

It must be noted that increases that are above what is provided for in the GEPF law and rules is granted at the discretion of the board taking into account the fund’s investment performance as well as GEPF law requirements.

Pensioners will receive individual letters illustrating the new values of their pensions as of 1 April 2022.

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