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Organization Name : GEPF
Facility Name : Divorce Benefit
Applicable For : Government Employees in South Africa
Website : https://www.gepf.co.za/divorce-benefit/
GEPF Divorce Benefit
Divorce Benefit From debt approach to service reduction approach
This amendment to the law removes the notional pension debt concept that accrued to the GEPF member when a portion of their pension was paid out to their former spouse by the GEPF as a divorce settlement.
The new amendment now ensures that rather than creating a debt, there will be an adjustment to the member’s pensionable service years following the payment of a divorce settlement by the GEPF.
This means that the benefit that will be paid to the member upon exiting the GEPF will now be decreased by reducing the members’ years of pensionable service to take into account the pension amount that was paid to the spouse upon divorce
1. How does divorce affect my benefit?
Members who are in the process of a divorce must take note of the financial implications on their pensions, in the event they have agreed to share their pensions with their former spouses.
Once the GEPF receives a divorce decree that indicates that the divorcing parties have agreed or been ordered to a division of pension, the Fund has to honour the court order by paying the former spouse as agreed by both parties or ordered by the court.
2. Does GEPF need my permission before paying my ex-spouse/partner? Can I refuse?
No. The court orders the Fund by the Decrees of Divorce to pay ex-spouses and the Fund is compelled to comply with the order.
3. What will happen if the service adjustment approach leads to my retiring without qualifying for pensionable period or post-retirement medical subsidy? How will this work?
The Fund will still carry the actual service of a member and a member may still qualify for their post-retirement medical subsidy based on the actual service.
The Service Reduction approach will not affect the qualification or not for post-retirement medical subsidy and will affect the calculation of their pension benefit only.
4. Is it legal for GEPF to pay my ex-spouse from my pension?
Yes. The Fund is merely giving effect to the court order based on the provisions of the divorce between the parties.
5. When does it start and end?
The new approach will be effective as of 1 August 2019. Implementation will be subject to the rules of the GEPF being amended and the administration systems being configured to accommodate the change in approach.
6. What are the advantages of the service adjustment approach to members?
It allows for greater certainty for members in respect of their eventual pension benefits on exit as it is easier for members to estimate their pension benefits on exit.
FRAUD HELPLINE – 0800 203 900
Client Centre :
GEPF Administration Office
Building 2A, Trevenna Campus
Corner Meintjies and Francis Baard Street
Tel : +27 80 011 7669
Fax : +27 12 326 2507