South Africa: Eskom Pension and Provident Fund Members' Payouts Are At Risk

analysis

The Eskom Pension and Provident Fund has withdrawn an application in the Western Cape High Court to get its current administration service provider to hand over its intellectual property to enable the fund to interpret its members' data. The fund denies it won't be able to pay pensions at the end of the month, but the withdrawal of the case suggests the risks are high.

The Eskom Pension and Provident Fund (EPPF) has withdrawn an urgent application it made earlier this year to get its administration service provider Global ASP to provide the analytical capability for the fund's 80,000-strong membership database.

The fund is only in possession of the raw data, which, according to the current contract with Global ASP, is all that they are entitled to, without following stipulated migration procedures.

When inquiring about the matter with the EPPF at the time, the fund simply replied via their public relations firm in an email that:

"The Eskom Pension and Provident Fund is currently in a legal process relating to the termination of a service agreement with Global ASP, the incumbent pension administration system service provider, whose contract is due to come to an end in April. As such, we...

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