In a recent determination, the Pension Fund Adjudicator ordered an umbrella fund to reverse its decision not to pay a 50% share of a pension interest as decreed in a divorce settlement.
According to an article published by Fin24, the fund claimed that, where a marriage is dissolved in terms of the tenets of the Islamic religion, the Divorce Act did not apply.
“A decree of divorce as contemplated in terms of the Divorce Act was not possible, since there was no marriage as contemplated in terms of the Divorce Act.”
This was recently amended, but the divorce and the settlement agreement between the parties were made an order of the Western Cape High Court in Cape Town, three days before it became effective.
The umbrella fund was ordered to pay the complainant 50% of the pension interest as decreed in the divorce order settlement.
The Z Paulse determination can be downloaded here.