NSF PENSION DISPENSATION

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NSF PENSION DISPENSATION
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AIM OF THE SESSION

• To provide information on NSF Pension
  Dispensation
• To give an overview on qualifying criteria
• Current status

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POLICY FRAMEWORK

• NSF A former MK or APLA who
• entered into employment agreement with the
  government/state
• as a Public Service Act personnel member or
• as a Defence uniform/non-uniform personnel
  member with the DoD on or before 31 March 2002
• through integration or normal personnel
  acquisition process on or before 31 March 2002

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POLICY FRAMEWORK

• NSF Service
• The period between the date on which the NSF
  members joined their respective former forces and
  the date of their taking up employment with state
  
• (In terms of the act), if joined former NSF
  before age 16, the service will start from age 16

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POLICY FRAMEWORK

• NSF Service
• Joined former NSF at age 13 in 1975 and
  integrated in 1994
• The 3 years from age 13 to age 16 will not be
  considered for purposes of the NSF pension
  dispensation
• Member service is effective from 1978 at age 16
• NSF Service 15 years (and not 18 years)

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BACKGROUND

• Seven forces amalgamated to form SANDF in 1994
• Five former statutory forces
• Venda Defence Force
• Ciskei Defence Force
• Transkei Defence Force
• Bophuthatswana Defence Force
• SA Defence Force
• Two former non-statutory forces
• MK
• APLA

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BACKGROUND

• Previous service of former statutory force
  members is now recognized for pension purposes
• Addresses disparity between former NSF members
  and former statutory force members with regard to
  pension benefits
• Intention of this Act is to address the disparity
  between former non-statutory forces and former
  statutory forces on pension benefits at exit

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BENEFIT STRUCTURE

• Members with less than 10 years NSF service
• 50 of the service will be recognised
• Provided member meets their full financial
  obligation

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BENEFIT STRUCTURE

• Members with 10 or more NSF service
• 100 of the service will be recognised
• Provided member meets their full financial
  obligation

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NSF PENSION VS SPECIAL PENSION

• Choice between NSF pension benefits and Special
  Pensions benefits
• Option to retain special pension benefits -
  forfeit the right to be considered for NSF
  pensions benefits
• Option to forfeit Special Pensions benefits in
  favour of NSF pension benefits

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MEMBER OPTIONS

• Pay back the Special Pensions benefit amount
  received
• Monthly Special Pensions benefit will stop
• If cannot afford to pay back Special Pensions
  benefit, NSF service will be reduced accordingly

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MEMBERS WHO DO NOT QUALIFY

• Former NSF members who
• Demobilised (received benefits in terms of
  Demobilisation Act 99 of 1996) and
• Did not take up employment in the public service
  or with the departments that contribute to the
  GEPF

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PROCESSING AN APPLICATION

• The processing of an application at the GEPF
  takes approximately 60 days after the submission
  of the prescripted documentation by the relevant
  employer department (DoD)

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COMMUNICATION

• DPSA Circular to the Heads of all National and
  Provincial Departments and Administrations -
  First circular on NSF 13/01/2005
• Road Shows (DoD/GEPF) - Distributions of
  application forms to DoD members
• Weekly operational meetings (DoD/GEPF)
• Monthly meetings (Senior DoD/GEPF Management
  Officials) - Updates
• Daily correspondence via letters, telephone
  enquiries and personal visits (GEPF Operational)
• Meetings on request by Secretary of Defence/DG
  National Treasury/GEPF
• GEPF Circulars to all Employer Departments
  Extension of cut-off date (from 30/09/2005 -
  31/03/2007) followed by reminders (last reminder
  sent on 07/03/2007)

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STATISTICAL OVERVIEW FOR DoD (as at
09/02/2007)

•  

  Total NSF Members Quotes Generated Quotes Issued to DoD Quotes Returned to GEPF NSF Periods processed NSF benefits paid
Total 21365 14171 14171 3065 1649 973

Exited Members 7015 4151 4151 1706 1580 973
Active Members (still in service) 14350 10020 10020 1359 69 Still in service


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DEPARTMENTS OTHER THAN DoD PARTICIPATING IN THE
NSF DISPENSATION

• The following departments have received NSF
  applications forms and NSF quotations
• Foreign Affairs
• Correctional Services
• Home Affairs
• Gauteng Housing
• National Communication
• National Prosecuting Authority
• Regional and Land Affairs
• Social Development
• SAPS
• Intelligence Services

•  

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DEPARTMENTS OTHER THAN DoD PARTICIPATING IN THE
NSF DISPENSATION

• The following departments are in the NSF costing
  process with the Actuaries
• GCIS
• Eastern Cape Local Government
• Western Cape Provincial Government
• Western Cape Social Development
• Eastern Cape Department of Transport
• Eastern Cape Public Works and Roads
• Public Service Commission
• Local government and Traditional Affairs
• Department of Justice
• Limpopo Legislature
• SARS
• Department of Agriculture
• GSSC
• Gauteng Premiers Office
• Gauteng Department of Agriculture, Conversation
  and Environment

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