Solidarity takes GEPF to court over fund calculations
11 May 2016
Pretoria - Trade union Solidarity has served court papers on the Government Employees Pension Fund (GEPF) for unlawfully amending the formula for calculating employees' preservation fund payouts at the time of resignation.
Deputy chief executive Johan Kruger told reporters at a press briefing that civil servants who intended to or had already resigned after the unilateral amendment of the formula took effect on April 1 2015 have lost benefits worth thousands.
"Among (other) things, Solidarity has registered a class action on behalf of more than 1.2 million civil servants and would consequently hold the GEPF liable for the unilateral amendments made to the formula. The GEPF application Solidarity is bringing before the court is a major lawsuit and is probably the first of its kind," said Kruger.
He said no proper consultation process was taken, and added Solidarity would demand that those who resigned be compensated as if the previous formula still applied.