THE Government Employees Pension Fund (GEPF) said that it will implement revised actuarial factors, following a statutory actuarial valuation.
The GEPF will be implementing these factors from 1 November.
These actuarial interest factors are used to determine the actuarial interest benefits which represent the value of a member’s benefit in the fund, as outlined in the GEPF rules.
According to the department, this follows the 31 March 2021 statutory actuarial valuation report of the fund.
“The actuarial interest factors are updated in line with any changes to the assumptions used at each statutory actuarial valuation of the fund. The current actuarial interest factors are based on the 31 March 2018 statutory valuation, which was implemented with effect from 1 July 2019 to date,” said the GEPF.
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They added that the implementation of the revised factors follows the completion of a consultation process with labour organisations as required by the Government Employees Pension Law, 1996.
The GEPF is required to consult with public sector labour unions concerning the calculation of actuarial interest factors which are determined when the fund undertakes a statutory valuation.
“Payment of a member’s actuarial interest occurs on resignations or other exits from the fund where members have less than 10 years of pensionable service. The factors are mainly driven by how future salaries and pensions are expected to increase, as well as the level of returns that the fund’s investments are expected to earn in the long-term. These drivers are referred to as economic assumptions,” they added.
They concluded that last year’s actuarial factors have reduced from the 2018 factors.
“The factors are lower due to the changing economic assumptions adopted for the 2021 statutory actuarial valuation. As a result, changing the assumptions ensures the GEPF’s assets and liabilities are matched and that members get paid their fair share of benefits and no one is disadvantaged,” they said.
