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Following the pressure exerted by Solidarity on the GEPF during 2015 regarding the application of the “clean break principle”, the GEPF undertook to abandon and revise the system, by giving members the option as well as adopting the more commonly used system of calculation in years of service as an option. The GEPF undertook to contact Solidarity and to evaluate the payments of every person whom we represent in terms of the clean break principle and to compare these with the system of calculation in years of service in order to determine whether anyone has suffered losses. Following litigation launched by Solidarity concerning the unilateral adjustments to the formula in the event of resignation before reaching the age of 55 (read more below), the GEPF has now gone back on its undertaking to Solidarity regarding the clean break principle. We are now preparing also to initiate litigation in this regard against the GEPF.
Regarding the adjustment of the values of the formula for calculating a person‘s resignation value from the fund on resignation before 55, the GEPF has admitted that labour had not been consulted in this regard. This omission is reviewable in terms of the Administrative Justice Act.
See the attached documents for more information on the clean break principle.
Solidarity has launched litigation against the GEPF with the aim of reviewing this decision in order to obtain financial compensation for our members and members who have already resigned and have been prejudiced by the unilateral adjustment of the formula.
We have already applied for a court date with the High Court for adjudication of the first leg, namely our application for certification of a class action, to be heard. The case should be placed on the roll early in 2017.