The Government Employees Pension Fund (GEPF) has announced a 3.5% annual pension increase for its members, effective 1 April 2026. This increase is 100% of the 3.5% inflation rate for the 12 months ending 30 November 2025, and is significantly higher than the 2.9% pension increase awarded to pensioners in April 2025.
The GEPF uses the November year-on-year Consumer Price Index (CPI) to determine annual increases, which can fluctuate significantly above and below the average rate for the year. In 2024, the average inflation rate for the year was 4.4%, but the fourth-quarter CPI figures decreased significantly due to falling fuel prices. The GEPF argued that, over time, year-on-year fluctuations average out, and that it was neither necessary to change the measurement to match the annual average CPI figure, nor to use a core inflation rate that excludes fuel price fluctuations.
GEPF Pension Increase Explained
Pensioners who retired on or before 1 April 2025 are to receive a 3.5% increase, meaning that for every R1 000 of pension received in the previous year, the pensioner will now receive an additional R35. However, pensioners who retired after 1 April 2025 are to receive a proportionate increase based on the number of months they have been in receipt of pension up to 31 March 2026. This is common practice in pension administration to ensure that all pensioners are treated fairly and consistently, based on the time they have been drawing their pensions.
According to the GEPF, the decision to grant this increase reflects the fund’s strong commitment to balancing the interests of its pensioners with the fund’s long-term financial stability. The increase exceeds the 75% CPI base increase required by the Government Employees Pension Law and Rules. For more information on pension funds and their administration, visit the Wikipedia page on pension funds.
What This Means for Pensioners
The 3.5% pension increase is a welcome relief for GEPF members, who have been affected by the rising cost of living. The increase is designed to counteract inflation and maintain the purchasing power of pensioners. However, pensioners who retired after 1 April 2025 may receive a lower increase, depending on the number of months they have been in receipt of pension.
Here are some key points to note about the GEPF pension increase:
- The 3.5% increase is effective 1 April 2026
- Pensioners who retired on or before 1 April 2025 are eligible for the full 3.5% increase
- Pensioners who retired after 1 April 2025 are eligible for a proportionate increase based on the number of months they have been in receipt of pension
- The increase exceeds the 75% CPI base increase required by the Government Employees Pension Law and Rules
