Pensioners of the Government Employees Pension Fund (GEPF) can look forward to a welcome financial boost starting 1 April 2026. The GEPF has announced a 3.5% increase in pension payouts, providing relief to retirees amidst rising living costs.
This increase is set to apply to pensioners who retired on or before 1 April 2025, while those who retired after this date will receive a proportionate adjustment based on the duration of their pension payments.
Details of the Pension Increase
The 3.5% increase is based on the Consumer Price Index (CPI) for the 12-month period ending 30 November 2025, which stood at 3.5%, indicating a modest inflationary environment. This increase is significant as it represents the full 100% of the CPI, surpassing the 75% base increase that is required by the GEPF’s legal framework.
GEPF Statement on Pension Increase
The fund clarified that pensioners who retired on or before 1 April 2025 will receive the full 3.5% increase, while those retiring after this date will see a pro-rated increase, adjusted according to how long they have been receiving their pension. The adjustment ensures that all pensioners are treated fairly, with retirees getting their due share in line with their pension start date.
“The increase is part of our ongoing efforts to ensure that pensioners can maintain their purchasing power in the face of rising costs. It also reflects our commitment to maintaining the financial health of the fund,” said the GEPF.
Rationale Behind the 3.5% Adjustment
The decision to apply the 3.5% increase stems from the fund’s annual review, considering the inflation rate for the year ending November 2025. By aligning the increase with the inflation rate, the GEPF aims to preserve the real value of pensioners’ income.
The 3.5% increase is higher than the minimum required by the fund’s regulations, which stipulate that pension adjustments must at least be 75% of the annual CPI increase.
This proactive step is taken to ensure that pensioners’ income remains secure and reflective of the cost of living, particularly in a low-inflation environment. The GEPF emphasized that the increase is designed to offer a balance between meeting pensioners’ needs and maintaining the fund’s long-term stability.
Ensuring Financial Stability and Affordability
The GEPF has also highlighted that all pension increases are contingent upon the financial affordability of the fund at the time of review. The decision to grant the 3.5% increase was made after careful consideration of the fund’s current financial position, and the GEPF remains committed to its dual mandate of protecting the interests of pensioners while ensuring the fund’s sustainability.
“The GEPF is committed to balancing the interests of its pensioners with the fund’s long-term financial health. This increase, granted in a context of low inflation, ensures that pensioners continue to benefit from a secure and dignified retirement,” the statement concluded.
Looking Ahead: Maintaining Support for Pensioners
While the 3.5% increase is a significant move, the GEPF has reaffirmed its ongoing commitment to ensuring the well-being of its pensioners. The increase not only protects pensioners from inflation but also reflects the fund’s determination to provide stability in uncertain economic times. This decision comes as part of a broader strategy to secure pensioners’ incomes, especially during periods of economic volatility.
As the fund continues to monitor the financial environment, it remains dedicated to implementing pension adjustments that reflect the reality of inflation while keeping its finances in a stable condition.
By staying aligned with inflation metrics and the GEPF Law and Rules, the fund strives to offer a balance between adequate pension increases and long-term financial security.
