Resignation benefits apply to members who resign or are discharged due to misconduct or an illness or injury caused by the member’s own doing. These members have two options: either they can be paid a gratuity (a once-off cash lump sum) or have their benefits transferred to an approved retirement fund. If benefits are being transferred, the GPAA pays the member’s actuarial interest to the member’s new fund. The amount that is transferred to an approved retirement fund is not taxed at this point. Tax is only deducted when the member retires or withdraws cash from the new fund.
Detailed information regarding resignation benefits is available under the ‘Our benefits’ section of the GEPF website at www.gepf.gov.za.
If you have any questions about your pension benefits, please talk to us. You can either phone GPAA’s toll-free Call Centre on 0800 117 669, or visit your nearest GPAA Walk-in Centre.