Tax being withheld from certain GEPF pensions

The legislation affecting annuities from pension funds was changed for SARS to provide an effective rate to the retirement funds in order to prevent the under-withholding of PAYE and subsequent unplanned tax debt, specifically in cases where pensioners receive more than one source of income.

However, affected pensioners do have the choice to opt out of the revised tax rate provided by SARS and revert to the normal PAYE rate applicable to their pension.

The Government Employees Pension Fund (GEPF) specifically, has issued a letter to its members explaining the tax deductions, and a Media Release wherein it has reiterated that its members may make use of the opt-out option.