Upon receiving a divorce decree instructing the Fund to pay an ex-spouse, the GEPF processes the claim accordingly. It is the jurisdiction of the courts to determine the eligibility of an ex-spouse to make a claim against the member’s pension.
Updates to GEPF Rules
Revised Approach
Effective from 23 May 2019, the GEPF has revised its approach to handling divorce claims. Previously viewed as a notional loan, these claims are now addressed using a service reduction method. This approach ensures fairness and clarity in benefit calculations.
Service Reduction Approach
Under this revised method, the amount allocated to the ex-spouse as per the divorce order is converted into pensionable service years equivalent to the sum. Subsequently, the member’s pensionable service is reduced by the corresponding number of years. Upon exiting the Fund, the member’s benefits are calculated based on the reduced pensionable service years.
Important Considerations
It is crucial to understand that the GEPF continues to recognize the member’s actual pensionable service years before the reduction. Therefore, the member remains entitled to pension benefits based on their original pensionable service duration.
In summary, the GEPF’s approach to divorce-related claims ensures equitable distribution of benefits while upholding the legal mandates set forth by the courts of law.