ARTICLE · 06 JANUARY 2020

Recent Changes – Government Pension Funds And Divorce Settlements

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Government employees who are members of the Government Employees Pension Fund (‘GEPF')...

South AfricaGovernment, Public Sector

Schoemanlaw Inc.

Government employees who are members of the Government Employees Pension Fund ('GEPF') can breathe a sigh of relief, as their pension interest will no longer be subject to the 'debt' approach when distributing pension interest when enforcing terms of a Divorce Settlement Order.

The previous rules were structured in such a way that the divorce payout was included as a debt to the pension interest. In this way, members could owe money to the GEPF when they retired.

The new rules, which came into effect 1 August 2019 under the guise of the Government Employees Pension Law Amendment Bill, will now reduce the number of years of service accrued in equal proportion to the benefit due to the spouse in terms of the Divorce Order.

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