South Africa: How Safe Is Your GEPF Pension?

analysis

The Association for Monitoring and Advocacy of Government Pensions is a non-profit set up to help protect the pension benefits of members of the Government Employees Pension Fund. Members, who are retired professionals, are concerned about the sustainability of the GEPF.

Public sector employees can rest assured that despite the shenanigans at the Public Investment Commission, which manages the bulk of their pension fund, their assets are in relatively good shape. But, by all indications, they should not assume that this will remain the case.

Fund chair Dr Renosi Mokate noted in the recently published annual report that despite the tough economic conditions, the fund had a return of 2.6% or R46-billion during the 2018/9 financial year. This is 69.5% lower than the R106-billion earned in the previous financial year.

This return was off the back of an investment portfolio that grew by R17-billion to R1.82-trillion. While the numbers seem huge, it's worth remembering that in the previous financial year the portfolio grew by R138-billion.

Mokate said while many pension funds and investors had seen negative growth in their portfolios during the past financial year, the GEPF has seen an increase, albeit marginal, in its investment growth.

The fund is...

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