GEPF pension increase: How is your annual increase actually calculated?
The GEPF has explained how annual pension increases are calculated, with investment returns, inflation and the fund’s financial position among the key factors.
The Government Employees Pension Fund (GEPF) has outlined the process behind calculating annual pension increases for pensioners. The fund reviews these adjustments once a year and, when approved, adds them to monthly pension payments. Recently, GEPF announced a 3.5% increase effective April 1, 2026, though the move was met with mixed reactions due to concerns it may not sufficiently counteract inflation. Pensioners are left wondering exactly how the increase is calculated and what factors the fund considers.
According to GEPF, the annual increase is governed by the GEP Law of 1996 and its own Pension Increase Policy. The GEPF Board of Trustees, in consultation with the fund’s valuator, evaluates several key factors before deciding on an increase. These factors include the fund’s investment returns, projected impact of the increase on the fund’s long-term financial health, historical patterns of increases, current inflation rates, and the necessity for catch-up adjustments to match living cost changes.
A crucial aspect of GEPF’s decision-making is ensuring that any pension increase is directly linked to the fund’s investment performance and remains affordable. This commitment was reinforced when GEPF reassured its members that their benefits remain secure, despite market value declines caused by global geopolitical events such as the Israel–USA–Iran conflict.
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