| (1) |
The Board shall direct the Fund to reduce a member’s pension interest by any amount assigned from the member’s pension interest to the member’s former spouse in terms of a decree of divorce granted under section 7(8)(a) of the Divorce Act, 1979 (Act No. 70 of 1979), or a decree for the dissolution of a customary marriage. |
| (a) |
Subject to paragraph (j), for the purposes of section 7(8)(a) of the Divorce Act, 1979 (Act No. 70 of 1979), the portion of a member’s pension interest assigned to the member’s former spouse in terms of a decree of divorce or a decree for the dissolution of a customary marriage is deemed to accrue to the member on the date on which the decree of divorce or the decree for the dissolution of a customary marriage is granted. |
| (b) |
The amount of the member’s pension interest in the Fund shall be determined and the amount of the member’s pension interest that is assigned to the former spouse shall be calculated by the Fund in accordance with the rules as at the date of the decree of divorce or the decree for the dissolution of a customary marriage. |
| (c) |
Prior to determining the amount of the member’s pension interest that is assigned to the former spouse, the amount of the member’s pension interest referred to in paragraph (b) shall first be reduced in accordance with the rules by an amount of the member’s pension interest which, in a previous divorce or a previous dissolution of a customary marriage, was paid over or awarded to another party. |
| (d) |
The amount of any pension benefit that is subsequently payable to the member in terms of the rules will be reduced by the equivalent of the amount of the share of the pension interest of the member which— |
| (i) |
The benefit that is subsequently payable to the member shall, as provided in the rules, be decreased by reducing the member’s years of pensionable service to take into account the pension interest of the member which was assigned to any former spouse of the member. |
| (ii) |
The rules referred to in subparagraph (i) shall be made on the advice of an actuary. |
[Section 24A(2)(d) substituted by section 12 of the Financial Matters Amendment Act, 2019 (Act No. 18 of 2019), Notice No. 799, GG 42482, dated 23 May 2019]
| (e) |
The Fund shall, within 45 days of the submission of the court order by the former spouse of a member, request the former spouse to elect whether the amount to be deducted must be— |
| (i) |
paid directly to the former spouse; or |
| (f) |
The former spouse shall, within 120 days of being requested to make a choice— |
| (i) |
inform the Fund of the manner in which the amount referred to in paragraph (e) must be dealt with; and |
| (ii) |
if the former spouse chooses that the amount must be paid to the former spouse directly, provide the Fund with the details that are necessary to effect the payment; or |
| (iii) |
if the former spouse chooses that the amount must be transferred to an approved pension fund on his or her behalf, provide the Fund with the details of that approved retirement fund. |
| (g) |
The Fund shall pay or transfer the amount within 60 days of being informed of the manner in which the amount shall be dealt with in accordance with the former spouse’s choice. |
| (h) |
In the event that the former spouse fails to make a choice or identify the approved retirement fund to which the amount should be transferred within the period referred to in paragraph (f), the Fund shall pay the amount directly to the former spouse within 30 days of the expiry of that period. |
| (i) |
Despite paragraph (h), in the event that the Fund cannot reasonably ascertain the manner in which the payment to the former spouse shall be effected, the Fund shall retain the amount plus interest as determined by the Board in the Fund, until such time as details of the manner in which that payment shall be effected is made available to the Fund by the member, the former spouse or any other person whom the fund is satisfied has the necessary authority and capacity to instruct the Fund in that respect. |
| (j) |
Any portion of a member’s pension interest assigned to a former spouse in terms of a decree of divorce or a decree for the dissolution of a customary marriage granted prior to the enactment of this subsection shall, for purposes of any law other than the Income Tax Act, 1962 (Act No. 58 of 1962), including, but not limited to, section 7(8)(a) of the Divorce Act, 1979 (Act No. 70 of 1979), be deemed to have accrued to the member on the date of enactment of this subsection, and must be paid or transferred in accordance with paragraphs (a) to (i). |
[Section 24A inserted by section 3 of the Government Employees Pension Law Amendment Act, 2011 (Act No. 19 of 2011)]
Public Service Commission Act, 1997
