As a financial journalist I am increasingly concerned about misinformation provided to members of the Government Employees Pension Fund (GEPF) by unscrupulous financial advisers.
Some advisers use fear tactics, telling members that their funds will be stolen or mismanaged by the government. Many GEPF members have been convinced by financial advisers to resign before retirement so that they can place their funds in a market-linked pension preservation fund.
What many members do not fully understand is that the GEPF is a “defined benefit” fund. This means the pension received by members has nothing to do with the investment performance of the fund. It relates purely to the number of years of service, your average salary in the last two years multiplied by the accrual rate. The accrual rate is defined under the law that governs the GEPF.
This video, as part of a member education series, explains how the GEPF works, and why it pays to be a member of the fund.