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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 forcesVenda Defence Force

Ciskei Defence Force

Transkei Defence Force

Bophuthatswana Defence Force

SA Defence Force

*Two former non-statutory forcesMK

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 Choice between NSF pension benefits and Special Pensions benefitsSpecial 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 69Still 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 Premier’s Office

Gauteng Department of Agriculture, Conversation and Environment