Deputy Chairperson, the Select Committee on Finance reports as follows: The Government Employees Pension Law, GEPL, Amendment Bill will amend the Government Employees Pension Law of 1996, to provide for the implementation of the "clean-break principle".
Currently, the GEPL does not provide for a former spouse of a member to claim a portion of a member's pension interest in terms of a divorce order, once the divorce or an order for the dissolution of a customary marriage has been granted. As such, a former spouse can only receive a portion of the member's interest after the member has exited the Government Employees Pension Fund.
The amendment was necessitated by the fact that the Pension Funds Amendment Act incorporates the "clean-break principle". This simply implies that the former spouse does not have to wait until a member exits the pension fund. The proposed amendments therefore seek to bringing the GEPL in line with the Pension Fund Act.
The proposed amendments also consider the 2009 and 2010 Cabinet's approval of the revision of the nonstatutory forces, which entails that the pensionable service of former members of the NSF or services will be recognised, should the Bill be promulgated. The other consideration provided in the Bill is the amendment to give the board more powers to make rules.
The Bill also proposes the new insertion of section 24A, which deals with the payment of pension interest as defined in section 1(b), and provides powers for the board to direct the fund to reduce a member's pension interest by any amount assigned to the member's former spouse in terms of a decree of divorce granted under the Divorce Act.
The pension interest for the former spouse is deemed to accrue to the member on the date on which the decree of divorce or dissolution of the customary marriage was granted. In calculating pension interest, any additional voluntary contributions by the member should be excluded.
The Bill proposes that the former spouse shall, within 45 days of the submission of the court order, elect whether the amount deducted should be paid directly to his or her former spouse or transferred to an approved retirement fund as requested by the fund. Upon receipt of this request, the former spouse will have 120 days to inform the fund as per section 24A(2)(f)(i)-(iii).
The fund is then awarded 60 days to transfer the amount in accordance with the former spouse's choice. In an instance where the former spouse fails to make the choice of where the money should be transferred, the fund shall within 30 days transfer the amount directly into the former spouse's account.
All current outstanding cases shall be dealt with in terms of this law, as amended. Also, provision has been made that any claims or applications that may have been previously rejected and finalised in terms of this law may now be resubmitted for consideration in terms of this law as amended.
Deputy Chair, the Select Committee on Finance, having considered the Government Employees Pension Law Amendment Bill, B15-2011, which section 75 supports, therefore moves that the House supports the Bill. Thank you. [Applause.]
Debate concluded.
Bill agreed to in accordance with section 75 of the Constitution.