PUBLIC sector trade unions are gearing up to challenge in court a decision by the Government Employees Pension Fund (GEPF) to amend the formulae used to determine payments to members who retire or resign early.The fund is compulsory for public servants and is governed by its own set of legislation. Every two years an external independent valuator is appointed to determine the actuarial interest values for members based on a calculation comparing liabilities and assets of the fund with the demographic and economic outlook.Solidarity was the first union on Wednesday to lodge a class action lawsuit against the GEPF in the High Court in Pretoria on behalf of fund members. More trade unions are set to follow.Solidarity CE Johan Kruger said that while the new formulae were not yet available, the difference between the new and old formulae for one member represented about R170,000 — or 7% — less than what he thought he would get."The fund has admitted to breaking its own rules but sees the...
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