The Government Employees Pension Fund (GEPF) has announced that an annual pension increase of 5.5% will be granted to its pensioners from 1 April 2022.
This pension increase is based on the 5.5% inflation rate for the 12 months ending 30 November 2021, making it equal to 100% of Consumer Price Index (CPI) and higher than the 75% of Consumer Price Index (CPI) provided in terms of GEP Law and Rules, the fund said.
Pensioners who retired on or before 1 April 2021 will receive the full increase of 5.5 % as of 1 April 2022. Pensioners who retired after 1 April 2021 are to receive a proportionate increase based on the number of months they have been in receipt of pension by 31 March 2022.
“The GEPF has granted this increase to enable pensioners to keep up with rises in inflation,” it said in an emailed statement.
“These increases are based on the affordability of the Fund at the given time. An affordable increase is one that can be granted without placing a strain on the sustainability of the Fund including current needs and future financial health of the Fund in order to continue paying benefits that are promised to our members.”
When setting the pension increases, the GEPF said it considers:
- The investment returns earned over the year,
- The level of inflation over the same period,
- How both relate to the assumptions adopted in the statutory valuations and more importantly,
- How the increase will impact the financial position of the fund.
“It must be noted that increases which are above what is provided for in the GEP Law and Rules is granted at the discretion of the Board taking into account the Fund’s investment performance as well as GEP Law requirements.
“Pensioners will receive individual letters illustrating the new values of their pensions as of 1 April 2022.”