Teachers resigning en masse over pension reforms

The mass resignation of teachers continues unabated despite assurances that the proposed pensions reforms would not affect pension payouts, the Government Pensions Administration Agency said in Pretoria today.

According to the agency's acting chief operating officer Jay Morar, the resignation trend started in May last year. He said the highest number of resignations was recorded in November with a total of 4,600 resignations.

“There is a rumour circulating that, come the 1st of March, Government Employees Pension Fund members will no longer be entitled to a lump sum. Sadly, this state of affairs is still continuing unabated. I would like to take this opportunity to once more categorically dismiss this assertion or rumour as a total lie,” Morar said.

He said the proposed pension reforms will have no effect on GEPF members' pensions, saying the reforms were solely to aimed at harmonising pension and provident funds in SA.

“However, I can confirm that the National Treasury has decided to suspend the introduction of these pension reforms pending further discussions at Nedlac. It is hoped that they might be re-introduced by the 1st of March 2016, provided an agreement is reached. Alternatively, the pension reforms will be introduced on the 1st of March 2017,” he explained.

Morar urged GEPF members to stop resigning because they were afraid that they would lose their hard-earned money, especially their lump sum benefits.

He said teachers were the most affected by the misinformation, urging them to approach the agency for clarity.

Morar said teachers who have resigned en mass due to the rumour were those on their verge of retirement, between the ages of 55 and 60.

He added that as of December, there was a total of R456 million in unclaimed pension and provident fund benefits, translating to about 17,000 individuals. Provincial departments accounted for R271 million whilst national departments accounted for R185 million.