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Formula dispute

Did you know?

In April 2015, the GEPF, without the necessary consultation process, unlawfully changed the formula for calculating a staff member’s actuarial interest on resignation. This has resulted in a substantial reduction in the pension benefit of a member who decided to take early retirement.

Who is affected?

All government employees that resigned before the age of 55 and after the amendments had come into effect in April 2015.

Solidarity is of the opinion that:

  • The amendments to the formula used to calculate a member’s pension benefit are procedurally flawed since trade unions and other stakeholders have not been consulted regarding the amendments;
  • The unilateral amendments may be unfair to employees; and
  • The amendments have been implemented without due regard to employees.

What steps have Solidarity taken?

Among other things, Solidarity has registered a class action on behalf of more than 1,2 million government employees and it will, therefore, hold the GEPF responsible for the unilateral amendments to the formula.

Solidarity demands that the amendment to the formula used to calculate the resignation value of public servants’ pension benefit should be reviewed.

Solidarity will furthermore demand that persons that have resigned since the unilateral adjustment should receive remuneration as if the previous formula still applied and that mora interest should be paid to them in this regard.

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