Solidarity announces legal action to be taken against Government Employees Pension Fund
9 May 2016
Trade union Solidarity, at a press conference this coming Wednesday (11 May 2016), will announce details of its court case against the Government Employees Pension Fund.
Solidarity, amongst others through launching a class action to act in the stead of more than 2 million employees in the public sector, wants to hold the GEPF accountable for the unilateral changes made to the formula used to calculate the resignation benefit of government employees. This step was taken without consulting all relevant stakeholders. Solidarity wants to have this process reviewed by the High Court.
Solidarity Deputy Chief Operational Officer Johan Kruger said Solidarity’s court case against the GEPF will benefit all public servants. “We believe that a proper procedure of consultation in terms of the rules of the fund was not followed. We seek a review of the decision to unilaterally amend the actuarial factors in order for proper consultation procedure to be followed.
Public servants seeking retirement or having retired after the unilateral amendment of the factors have lost thousands of rands in resignation benefits. A proper consultation process must take place in order for organised labour to be able to participate” Kruger said.