Does my pension interest in GEPF form part of my assets for purposes of divorce? Depending on the nature of the marriage, the court may make a ruling as to how the assets shared in the marriage, such as for example a house, vehicles and the like be divided between the parties. The question is whether the pension interest of any party to the divorce forms part of the assets? The answer is: yes. There are three types of marriage regimes in South Africa
How does tax on the portion of the pension interest allocated by the court work? If the parties were divorced on or after 13 September 2007, the non-member spouse will be taxed in his or her own right. If the parties were divorced before 13 September 2007, only the member spouse is taxed. However, should a non-member spouse owe the South African Revenue Service (SARS) any tax, this will be deducted from the benefit by SARS, regardless of whether the parties divorced before or after 13 September 2007
What does it mean, the GEPF is a defined benefit fund, as opposed to a defined contribution fund? GEPF is a defined benefit fund, not a defined contribution fund. This means that benefits are calculated using fixed formulas, based on length of service and final salary, as defined. Therefore, unlike a defined contribution fund, the benefit eventually payable to a member is not the sum of contributions made by a member plus growth. There is no ring-fenced amount per member in GEPF.
All you need to know about divorce and pension fund benefits. You are entitled to 50% of the value of your spouse’s Retirement Fund or Retirement Annuity if you are married in community of property or out of community of property with Ante Nuptial Contract (ANC ) with accrual. Ensure that your settlement agreement states that you receive …