Deputy Speaker, Cope will support, with some hesitation, the amendment to the Government Employees Pension Laws Amendment Bill, dealing specifically with nonstatutory services members. It is important for National Treasury to conduct an appropriate actuarial and thorough diligence exercise as soon as possible to verify the records supplied and the costs of all nonstatutory services.
Hon Deputy Minister, this process must be a thorough one. Otherwise, a too- high cost may cripple the process. This would not only affect the budget but, if the pension fund is not properly funded, it may harm government employees in general. We cannot allow this. So, the verifying process by the National Treasury becomes a very important tool and Cope will closely watch the department on this issue. The monies that were mentioned by the hon George are large amounts and we look for your guidance to make sure that this money is well spent.
The "clean break" principle did not exist previously and it was unfair that, while members' benefits increased after the divorce order was granted, this was only payable when the member retired. This increase did not apply to the portion allocated to the nonmember spouse. Our only concern is that the nonmember portion, when paid out, becomes cash and there is no requirement for the lump sum to be preserved as a future pension. This is wrong, and it could lead to divorces of convenience just to pay the family debt. We urge the department to amend the Pension Funds Act as soon as possible to allow for this. It would have been better to wait for such an amendment, but we understand the predicament of many nonmember spouses and will support this amendment.