The calculation of the increase in the pensions of government employees refers.
Initially, it was said that the GEPF would use the inflation rate for November 2024 to determine the annual increase in state pensions.
Now it seems as if the GEPF used a so-called "geometrical" method to calculate the average percentage increase for the previous twelve months.
According to the explanation of the GEPF, it reflects the compounded nature of inflation, similar to how yields are indicated in the case of investment portfolios.
However, regulation 23.2.1 of the GEPF's regulations reads: "a basic increase at a rate of at least 75% of the average percentage increase in the Consumer Price Index (All Items) over a period of twelve months (1 December to 30 November of the previous year)".
Therefore, AMAGP (an organisation acting as a watchdog on the GEPF) is requesting the responsible minister to exercise his discretion to supplement the present percentage increase to government pensioners in order to reflect the real rate of inflation.
So many billions (thousands of millions) went astray in the past due to poor investments and corruption (=stealing). We, as pensioners, can't be blamed for worrying about the future. We are very much aware of what happened in the past to the poor Transnet pensioners. They became very poor.
After a prolonged legal battle, they received a little bit of compensation, but by that time, some were dead already.
During the past year, it became known that the ANC has turned its greedy eyes to the money of pensioners “under the care of the trustees of the GEPF”.
No, it can't carry on like this. Aikona.
Leon de Vries I Struis Bay