1 NSF PENSION DISPENSATION

2 AIM OF THE SESSION To provide information on NSF Pension Dispensation To give an overview on qualifying criteria Current status

3 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

4 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

5 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)

6 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

7 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

8 BENEFIT STRUCTURE  Members with less than 10 years NSF service 50% of the service will be recognised Provided member meets their full financial obligation

9 BENEFIT STRUCTURE  Members with 10 or more NSF service 100% of the service will be recognised Provided member meets their full financial obligation

10 NSF PENSION VS SPECIAL PENSION Choice between NSF pension benefits and Special Pensions benefitsChoice 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

11 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

12 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

13 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)

14 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/ /03/2007) followed by reminders (last reminder sent on 07/03/2007)

15 STATISTICAL OVERVIEW FOR DoD (as at 09/02/2007) Total NSF MembersQuotes Generated Quotes Issued to DoD Quotes Returned to GEPF NSF Periods processedNSF benefits paid Total Exited Members Active Members (still in service) Still in service *

16 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

17 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