DO
Derrick O
1 reviews | Active since Apr 2009
09 Mar 2015, 08:50
GEPF Divorce Payout Debt (*******)
I got divorced in 2009 and signed a settlement agreement that my ex would be entitled to 50% of my pension interest when it becomes available upon me exiting the GEPF (retirement or resignation). In 2011 the Law changed and the GEPF implement the clean break principle (to align with all other pension funds) after losing a court case. No problem with that, however the GEPF convert the payout to the former spouse as \DEBT"on my name and charge compound interest of repo plus 3% (currently 8"
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Government Employees Pension Fund (GEPF)'s replyOfficial
12 Mar 2015, 07:57Hello der1000,
Thank you for contacting GPAA
kindly note that It is very important to understand that the member will owe GEPF the amount paid to the non-member spouse and that this amount will also accrue interest. This is so because GEPF paid, on the member's behalf, the debt he or she owes to the non-member spouse. Where GEPF pays the portion of the pension interest allocated by the court to the non-member spouse it's funding is reduced and it loses the growth on the money paid
It is extremely important that members should try to pay off the debt immediately. Otherwise the member may end up having very little pension money, if any, left over when he or she exits GEPF because the debt has been accruing interest and will be subtracted from any pension benefits payable on exit, however note that your concern has been escalated to both our legal unit and board .
kind regards
Nico Mokgoko.
Thank you for contacting GPAA
kindly note that It is very important to understand that the member will owe GEPF the amount paid to the non-member spouse and that this amount will also accrue interest. This is so because GEPF paid, on the member's behalf, the debt he or she owes to the non-member spouse. Where GEPF pays the portion of the pension interest allocated by the court to the non-member spouse it's funding is reduced and it loses the growth on the money paid
It is extremely important that members should try to pay off the debt immediately. Otherwise the member may end up having very little pension money, if any, left over when he or she exits GEPF because the debt has been accruing interest and will be subtracted from any pension benefits payable on exit, however note that your concern has been escalated to both our legal unit and board .
kind regards
Nico Mokgoko.
Government Employees Pension Fund (GEPF)'s reply12 Mar 2015, 07:57
Official
Hello der1000,
Thank you for contacting GPAA
kindly note that It is very important to understand that the member will owe GEPF the amount paid to the non-member spouse and that this amount will also accrue interest. This is so because GEPF paid, on the member's behalf, the debt he or she owes to the non-member spouse. Where GEPF pays the portion of the pension interest allocated by the court to the non-member spouse it's funding is reduced and it loses the growth on the money paid
It is extremely important that members should try to pay off the debt immediately. Otherwise the member may end up having very little pension money, if any, left over when he or she exits GEPF because the debt has been accruing interest and will be subtracted from any pension benefits payable on exit, however note that your concern has been escalated to both our legal unit and board .
kind regards
Nico Mokgoko.
Thank you for contacting GPAA
kindly note that It is very important to understand that the member will owe GEPF the amount paid to the non-member spouse and that this amount will also accrue interest. This is so because GEPF paid, on the member's behalf, the debt he or she owes to the non-member spouse. Where GEPF pays the portion of the pension interest allocated by the court to the non-member spouse it's funding is reduced and it loses the growth on the money paid
It is extremely important that members should try to pay off the debt immediately. Otherwise the member may end up having very little pension money, if any, left over when he or she exits GEPF because the debt has been accruing interest and will be subtracted from any pension benefits payable on exit, however note that your concern has been escalated to both our legal unit and board .
kind regards
Nico Mokgoko.