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If you’re a South African government employee considering resignation or retirement in the next two years, you need to be aware of potential changes to the pension formula that could significantly impact your payout. The most recent actuarial review was completed in March 2024, and while a report was published in May 2025, it does not confirm or deny whether a formula change is imminent. However, based on past trends, any change—often implemented with little notice—could result in a substantial reduction to your resignation benefit, potentially costing you thousands of rand
Key Points:
The pension fund reviews its actuarial formula every three years to ensure sustainability, often resulting in downward adjustments to benefits.
After the last major change in November 2022, many members lost significant value in their resignation benefits, with recovery taking up to two years.
If a new formula is introduced between August and November 2025, as has happened previously, those resigning shortly after could be adversely affected.
Your official exit date determines which formula applies, not the date you submit your resignation.
What Should You Do?
Request your latest pension statement.
Compare your resignation value before and after previous formula changes to assess potential losses.
Consider consulting a retirement specialist to evaluate whether an early exit could protect your benefits.
Don’t leave your financial future to chance—stay informed and plan ahead.
This information is provided by Retirement Wellness SA, an Authorised Financial Services Provider (FSP 31609), and is not issued by or on behalf of the Government Employees Pension Fund (GEPF)