GOVERNMENT EMPLOYEES

PENSION FUND (GEPF)

This document is intended for use by clients, alongside their financial intermediaries. The information in this document is provided for information purposes only and should not be construed as the rendering of advice to clients. Although we have taken reasonable steps to ensure the accuracy of the information, neither Sanlam nor any of its subsidiaries accept any liability whatsoever for any direct, indirect or consequential loss arising from the use of, or reliance in any manner on the information provided in this document. For professional advice, please speak to your financial intermediary.

Glacier Financial Solutions (Pty) Ltd. | A member of the Sanlam Group | Private Bag X5 | Tyger Valley 7536 | Email client.services@glacier.co.za | Tel +27 21 917 9002 / 0860 452 364 | Fax +27 21 947 9210 | Web www.glacier.co.za | Reg No 1999/025360/07 | Licensed Financial Services Provider

Sanlam Life Insurance Ltd. | Email life@sanlam.co.za | Tel + 27 21 916 5000 / 0860 726 526 | Fax +27 21 947 9440 | Reg No 1998/021121/06 | Licensed Financial Services Provider

Retire & receive pension from GEPF (>10 years’ service).Benefits depend on < or > 10 years’ service, average salary over last 2 years, age at exit stage.

Can’t resign within 3 months of retirement age.

When you resign you will not retain your medical aid membership and

subsidy, or your accumulated leave.

TAKE BENEFIT IN CASH, OR TRANSFER TO APPROVED RETIREMENT FUND

Only once-o�lump sum available

once-o� lump sum + monthly pension available

+ ADVANTAGES - DISADVANTAGES

- Fixed monthly income for life, linked to a min of 75% of inflation- Medical benefit- Retain leave pay- Spouse receives part of benefit- Retain funeral benefit

- Fixed income- Can deplete capital received as lump sum

Tax on retirement benefits: Pre- and Post-1998Before 1998 GEPF members were not taxed on their retirement benefits taken as a lump sum. Therefore, the portion of a member’s benefit that relates to service prior to 1 March 1998 will not be taxed, while that portion of the benefit that relates to service after that date, will be taxed at a rate which depends on their taxable income.

Death benefit:• If member dies within 5 years of retiring: Remainder of the 5 years’ guaranteed annuity due to the member is paid to the beneficiaries or estate + monthly pension to spouse + surviving children up to age 22• If member dies more than 5 years after retirement: Monthly pension to spouse + surviving children up to age 22

Medical benefit> 15 years’ service: government pays portion of monthly medical aid premium< 15 years’ service: once-o� medical benefit

At retirement

10years

< 10years

>

Members can also purchase service years or make voluntary additional contributions in order to increase retirement benefits.

+ ADVANTAGES - DISADVANTAGES

- Control over capital- Change income as required

- Tax can be high- Temptation to spend & deplete capital

Could consider if great number of pre-1998 service years, and joint estate smaller than R7m

Cash

+ ADVANTAGES - DISADVANTAGES

- Eliminate debt (withdrawal possible)- Control over amount of income from private pension- Sanlam’s support: accredited advisers- Leave money to beneficiaries

- Income vulnerable if investment-linked- Waiting period for income initially

Transfer

Transfer and retire privately

ORTo approved fund

Tax-free transfer | Possible one withdrawal (max 1/3) before retirement | Access to another 1/3 in cash at retirement | 2/3 to be transferred to retirement income solution

RETIRERESIGNATION

Leave GEPF

at the GEPF

1/3 in cash (taxed):- invest capital for growth to fulfil financial goal or supplement income later- purchase legacy for dependants

2/3 (or full amount) to purchase lifetime pension:- guaranteed pension for you and spouse- investment-linked pension for control, growth and legacy- guaranteed term income & life cover to provide legacy

- Early retirement penalty: Members will be penalised by 0.333% for every month before age 60.

DIVORCE Treatment of divorce after 1 April 2011

Depending on divorce order, a non-member spouse may be entitled to a portion of a member’s pension interest (value of resignation benefit on date of divorce). The non-member spouse may choose:

CASH OR TRANSFER TO AN APPROVED RETIREMENT FUND

You may need a GUARANTEED INCOME

Personal circumstances determine amount of income required

You may needCAPITAL to settle debt or fulfil

a financial goal

You may need GROWTHto supplement income later to

counter inflation

You may need to leave a LEGACYto your dependants

A M E M B E R ’ S D E C I S I O N I S F I N A L : P L A N F O R R E T I R E M E N T T O F U L F I L Y O U R U N I Q U E N E E D S