GEPF Payment Process: Timeline & Steps (2025)
By MoneyToday Team • Dec 12, 2024 • 6 min read
Waiting for your GEPF payout after resigning or retiring can be stressful. We often hear the question: "My papers were submitted last month, why haven't I been paid?"
The standard turnaround time is 60 days, but it involves multiple stakeholders including your HR department, the GPAA (Government Pensions Administration Agency), and SARS. Here is exactly how the process works.
The 4-Step Payment Timeline
Step 1: Department Submission (Z102 Form)
Your HR department completes the Z102 Withdrawal Form. This is the biggest bottleneck. If your HR delays sending this to the GEPF, the process hasn't even started yet.
Step 2: GPAA Processing & Calculation
Once received, the GPAA scans your documents and calculates your benefit based on your years of service and final salary. They check for errors (e.g., incorrect ID number, unsigned forms).
Step 3: SARS Tax Directive
The GEPF applies to SARS for a "Tax Directive" on your behalf. SARS calculates how much tax must be deducted from your lump sum.
Step 4: Payment Release
Once SARS approves, the GEPF pays the tax to SARS and the remaining balance to your bank account.
Resignation vs. Retirement
How you leave matters for both payment speed and tax.
Resignation (Cash Out)
You take your money as a lump sum.
- Tax: Heavily taxed. Only the first R25,000 is tax-free.
- Speed: Usually faster (one-off payment).
Retirement (Pension)
You get a lump sum (gratuity) + monthly income.
- Tax: First R550,000 of lump sum is tax-free.
- Speed: Setup takes longer (establishing monthly payroll).
Why is my payment delayed?
If you owe your department money (e.g., housing loan guarantee, bursary debt), they will not sign off the Z102 until this is settled or deducted.
The bank account name must match your ID exactly. Joint accounts often cause rejections. You must submit a certified Z894 bank form.
If there is a pending divorce claim on your pension, the GEPF freezes payment until the court order is finalized.