Solidarity sues over government pension change

11 May 2016 - 15:05 By Neo Goba

T It alleges the GEPF unlawfully and without consultation amended the formula in terms of which officials’ actuarial interest at the time of resignation are calculated.According to Solidarity deputy chief executive Johan Kruger‚ civil servants who intend to or who had already resigned after the unilateral amendment of the formula took effect‚ 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 consequently intends to 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. We contend that a proper consultation process‚ as required under the rules of the fund‚ has not been followed‚ and therefore Solidarity’s lawsuit against the GEPF would be to the benefit of all civil servants‚” Kruger said.“In addition‚ Solidarity will demand that persons who have resigned since the unilateral amendment be compensated as if the previous formula still applied and that moratory interest be payable on this amount‚” Kruger said.Kruger said they are serving the court papers on 24 other respondents‚ including current Finance Minister Pravin Gordhan and other trade unions that sit on the bargaining council.Solidarity is also demanding that the change made to the formula by which civil servants’ pension benefit is calculated be reviewed.– TMG Local Government..

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