GEPF INTRODUCES A NEW CHILD PENSION BENEFIT

The Government Employees Pension Fund (GEPF) Board of Trustees has approved the introduction of a Child Pension benefit replacing the previous Orphan’s Pension benefit with effect from 1 June 2018.

The introduction of the Child Pension benefit addresses the exclusion of children from qualifying for an Orphan’s Pension benefit because they had a surviving parent, i.e. the previous Orphan’s Pension requirement was that if a GEPF member or pensioner dies and there is no surviving parent (natural or adoptive) to take care of the eligible child/children, the child/ children then only qualifies for the Orphan’s Pension up to the age of 18 years and up to age 22 years if still a fulltime student.

The new Child Pension does not require both parents to have passed away in order for the child to qualify for the pension.

“This positive development is aimed at bridging the gaps that have been identified in the implementation and processing of the previous orphan’s pension. The concern for orphan’s pension application was that both parents had to be deceased for a child to qualify for the pension. This was considered to be exclusionary, particularly in the situation of single parents whose partners could not be traced or confirmed either dead or alive,” explained GEPF Principal Executive Officer, Mr Abel Sithole.

Similar to the Orphan’s Pension, the Child Pension is only applicable for those eligible children whose parent/s were members of the Government Employees Pension Fund prior to their death.

In order to not negatively impact on those children currently receiving the Orphan’s Pension, the GEPF has automatically converted such beneficiaries to child pensioners. There will be no need for these beneficiaries to apply for the Child Pension benefit as their benefits will be recalculated in terms of the new rules, but only from the date on which the new legislation comes into effect (1 June 2018). In terms of the Child Pension rules, most of the new orphans will now receive a higher monthly pension up to the age of 22 years regardless of whether the child is a student or not, and qualifying disabled children will also receive Child Pension regardless of their age.

As with the previous Orphan’s Pension, payment to minors will be made to the guardians of the children and the GEPF will notify the guardian to change banking details three months prior to the 18th birthday of the child. If the banking details are not changed, payment will be suspended (Section 21 of the GEP Law prohibits us from paying benefits to a third party). Children between the ages of 18 and 22 will receive payment into their own accounts.

Payments for a child that is a major and cannot administer their affairs requires a curator or guardian to be appointed by the High Court and the Master of the High Court must issue an appointment certificate.

Child Pension is a taxable benefit. If the child does not have a tax number, the GEPF will register the child as a taxpayer with SARS and inform the child/guardian of the tax number. Tax certificates will be issued annually by the GEPF.

Child Pensioners will also qualify for a child funeral benefit if they pass away. The standard funeral benefit rules will apply which means that a child between the ages of 18 and 22 who is fulltime student will qualify for a funeral benefit.

The new Child Pension application form (CHP1) is available on the GEPF website at www.gepf.co.za and at all GEPF offices.