15 MARCH 2020

Fellow South Africans,
I am addressing you this evening on a matter of great national importance.
The world is facing a medical emergency far graver than what we have
experi-enced in over a century.

The World Health Organisation has declared the coronavirus outbreak as a
global pandemic.

There are now more than 162 000 people who have tested positive for the
coronavirus across the globe.
Given the scale and the speed at which the virus is spreading, it is now
clear that no country is immune from the disease or will be spared its
severe impact.

Never before in the history of our democracy has our country been
confronted with such a severe situation.

From the start of the outbreak in China earlier this year, the South African
gov-ernment has put in place measures to screen visitors entering the
country, to contain its spread and to treat those infected.
As of now, South Africa has 61 confirmed cases of people infected with the
virus, and this number is expected to rise in the coming days and weeks.
Initially, it was people who had travelled out of the country, especially from
Italy, who had positively tested for the virus.
It is concerning that we are now dealing with internal transmission of the

This situation calls for an extraordinary response; there can be no halfmeasures.
Cabinet held a special meeting earlier today.
After which, due to the serious measures we are going to announce, I have
consulted the premiers.

We have decided to take urgent and drastic measures to manage the
disease, protect the people of our country and reduce the impact of the
virus on our society and on our economy.
We have now declared a national state of disaster in terms of the Disaster
Management Act.

This will enable us to have an integrated and coordinated disaster
management mechanism that will focus on preventing and reducing the
outbreak of this virus.

We will also be able to set up emergency, rapid and effective response
systems to mitigate the severity of its impact.
Following an extensive analysis of the progression of the disease
worldwide and in South Africa, Cabinet has decided on the following
Firstly, to limit contact between persons who may be infected and South
African citizens

We are imposing a travel ban on foreign nationals from high-risk countries
such as Italy, Iran, South Korea, Spain, Germany, the United States, the
United Kingdom and China as from 18 March 2020.

We have cancelled visas to visitors from those countries from today and
previously granted visas are hereby revoked.

South African citizens are advised to refrain from all forms of travel to or
through the European Union, United States, United Kingdom and other
identified high-risk countries such as China, Iran and South Korea.

This is effective immediately.

Government will continue to regularly issue travel alerts referring to specific
cities, countries or regions as the situation evolves based on the risk level.
Any foreign national who has visited high-risk countries in the past 20 days
will be denied a visa.

South African citizens returning from high-risk countries will be subjected to
testing and self-isolation or quarantine on return to South Africa.

Travellers from medium-risk countries – such as Portugal, Hong Kong and
Singapore – will be required to undergo high intensity screening.
All travellers who have entered South Africa from high-risk countries since
mid-February will be required to present themselves for testing.

We will strengthen surveillance, screening and testing measures at OR
Tambo, Cape Town and King Shaka International Airports
South Africa has 72 ports of entry in the country which are land, sea and air

Of the 53 land ports, 35 will be shut down with effect from Monday 16

2 of the 8 sea ports will be closed for passengers and crew changes.

Effective immediately, all non-essential travel for all spheres of government
outside of the Republic is prohibited
We further discourage all non-essential domestic travel, particularly by air,
rail, taxis and bus.

Secondly, it is essential therefore that we minimize the risk of the spread of
this virus by limiting contact amongst groups of people.
While we appreciate the economic, religious, and cultural significance of
social and community gatherings, the coronavirus is spread through
contact between persons.

As we have said before, the current circumstances require extraordinary
measures to curb the spread of infections. Countries that have heeded the
call to implement these radical measures, have fared much better than
those than do not.

Therefore to encourage social distancing Cabinet has decided on these
additional measures:

Gatherings of more than 100 people will be prohibited.

Mass celebrations of upcoming national days such as Human Rights Day
and other large government events will be cancelled.

Where small gatherings are unavoidable, organisers will need to put in
place stringent measures of prevention and control.

Schools will be closed from Wednesday, 18 March, and will remain closed
until after the Easter Weekend.

To compensate, the mid-year school holidays will be shortened by a week.
Government is working closely with colleges, universities and other public
facilities such as Parliament, prisons, police stations and military
installations to intensify hygiene control.

Visits to all correctional centres are suspend for 30 days with immediate

Government is aware of the confirmed case of a student who has tested
positive for the coronavirus at Wits University.

Those who have been in contact with the student will be quarantined.
The Minister of Higher Education, Science and Innovation is consulting with
vice chancellors of universities and colleges across the country and will
soon be announcing measures in this regard.

We call on all businesses including mining, retail, banking, farming to
ensure that they take all necessary measures to intensify hygiene control.
We also call on the management of malls, entertainment centres and other
places frequented by large numbers of people to bolster their hygiene

Thirdly, to further strengthen our health response:
Government is strengthening its surveillance and testing systems.
We are in process of identifying isolation and quarantine sites in each
district and metro.

Capacity is being increased at designated hospitals in all provinces.

We are also increasing the capacity of existing contact tracing processes.

We are partnering with the private sector to set up a national tracking,
tracing and monitoring system of all people infected with the coronavirus
and those they have been in contact with
We are undertaking a mass communication campaign on good hygiene
and effective prevention behaviour.

Therefore, we are calling on everyone to:

• Wash their hands frequently with soap and water or hand sanitisers for at
least 20 seconds;

•over their nose and mouth when coughing and sneezing with tissue or
flexed elbow;

•Avoid close contact with anyone with cold or flu-like symptoms.
In essence, we are calling for a change of behavior amongst all South

We must minimise physical contact with other people, and, encourage the
elbow greeting rather than shaking hands.

Because of the severity of this virus and its rapid spreading, government
will make funding available to capacitate the sectors dealing with the
national response to the Coronavirus outbreak.

Since the outbreak of this pandemic, our government’s response has been
led by an Inter-Ministerial Committee, chaired by the Minister of Health, Dr
Zweli Mkhize.

We congratulate them on the outstanding work they have done – together
with their able support teams – to steer our country through this challenging
and un-certain period.

As part of the intensification of this effort, we have decided to establish a
National Command Council chaired by the President.

This Command Council will include, amongst others, members of the Inter-
Ministerial Committee and will meet three times a week, to coordinate all
aspects of our extraordinary emergency response.

My fellow South Africans,
In addition to the impact that this pandemic will have on health and wellbeing
of our people, and the impact it will have on the day-to-day life of our
society, COVID-19 will also have a significant and potentially lasting impact
on our economy.

In the last few weeks, we have seen a dramatic decline in economic activity
in our major trading partners, a sudden drop in international tourism and
severe instability across all global markets.

The anticipated effects of the decline in exports and tourist arrivals will be
ex-acerbated by both an increase in infections and the measures we are
required to take to contain the spread of the disease.

This will have a potentially severe impact on production, the viability of
businesses, job retention and job creation.

Cabinet is therefore in the process of finalising a comprehensive package
of interventions to mitigate the expected impact of COVID-19 on our

This package, which will consist of various fiscal and other measures, will
be concluded following consultation with business, labour and other
relevant institutions.

It is clear that this disease will be extremely disruptive.
Our priority must be to safeguard the health and well-being of all South
Africans, to minimise the number of infections and to ensure all those
infected get proper treatment.

While we are battling a contagious virus, perhaps the greatest dangers to
our country at this time are fear and ignorance.

We must appreciate the extent of the threat that this disease presents, we
must accept the anxiety that it causes, but we cannot allow ourselves to be
overwhelmed by fear and panic.

We should stop spreading fake and unverified news and create further
apprehension and alarm.

While we are facing a medical emergency far graver than we have
experienced in recent times, we are not helpless.

We have the knowledge, the means and the resources to fight this disease.
If we act swiftly, with purpose and collectively we can limit the effects of the
coronavirus on our people and our country.

Although we may be limiting physical contact, this epidemic has the
potential to bring us closer together.

We are responding as a united nation to a common threat.

This national emergency demands cooperation, collaboration and common

More than that, it requires solidarity, understanding and compassion.
Those who have resources, those who are healthy, need to assist those
who are in need and who are vulnerable.

All the institutions of the state will be mobilised to lead this effort, but, if we
are to succeed, every company, trade union, NGO, university, college,
school, religious group and taxi association will need to play its part.

We thank those people who suspected they may have been exposed to the
virus for coming forward to be tested and for taking measures – such as
self-isolation – to prevent further transmission.

We thank the medical teams around the country who are leading our
response and are putting the well-being of others ahead of the risks they
face themselves.

On Saturday we welcomed 104 of our compatriots who were in Wuhan City,

We thank the repatriation team for the task they performed with pride and
efficiency to return them to the country and ultimately to their families.
The repatriation has been successful and those who have returned have
settled in the quarantine area.

We thank the military health officials, pilots, cabin crew and all those who
participated in this exercise.

We thank the leadership and the people of Polokwane and Limpopo for
warmly welcoming our fellow South Africans.

We also extend our gratitude to the staff and management of the Ranch
Hotel who have accommodated our compatriots and also subjected
themselves to quarantine.

We extend our appreciation too to the companies, organisations and
individuals who have taken it upon themselves to disseminate information
about this virus and to raise awareness.

We thank those businesses that have taken steps to protect their
employees, and those unions that have taken steps to protect their

Ministers who are at the frontline of coordinating our response to this crisis
will be briefing the nation tomorrow, where they will unpack details in
relation to the measures we announced tonight.
Fellow South Africans, this is the most definitive Thuma Mina moment for
our country.

I have great trust that our people will respond positively to this call to
common action.

Fellow South Africans,
This epidemic will pass.

But it is up to us to determine how long it will last, how damaging it will be,
and how long it will take our economy and our country to recover.

It is true that we are facing a grave emergency.

But if we act together, if we act now, and if we act decisively, we will
overcome it.

I thank you.

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GEPF pensioners will receive a 3.6% annual pension increase as of 1 April 2020

Date: 02 March 2020

Pretoria – Government Employees Pension Fund (GEPF) announced today that an annual pension increase of 3.6% to its pensioners will effect from 1 April 2020.

Pensioners who retired on or before 1 April 2019 are to be increased with a total increase equal to 100% CPI which is 3.6% over the year to the previous 30 November with effect from 1 April 2020.

Pensioners who retired after 1 April 2019 are to be increased proportionally for each month of retirement between the date of retirement and 31 March 2020, with effect from 1 April 2020.

This pension increase is based on the 3.6% inflation rate for the 12 months ending 30 November 2019 thus making the increase equal to 100% of Consumer Price Index (CPI) and higher than the 75% of Consumer Price Index (CPI) provided in terms of GEP Law and Rules.

The GEPF has granted this increase to enable pensioners to keep up with rises in inflation.

It must be noted that increases which are above what is provided for in GEP Law and Rules is granted at the discretion of the Board taking the Fund’s investment performance into account.


For more information please contact:

Call Centre: 0800 117 669 Email:

Twitter: @GEPF_SA

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Government Employees Pension Fund on Eskom Proposal

7 February 2020, Pretoria – The Government Employees Pension Fund (GEPF), has noted the recent media reports including government support as well as public discourse on the statement issued by the Congress of South African Trade Unions (COSATU) titled, “Key Eskom and Economic Intervention Proposals”.

In the statement, COSATU proposes, “a debt package to reduce Eskom’s debt from R450 billion to R200 billion through a special purpose finance vehicle involving social compact between government, the PIC and DFI’s”.

The GEPF would like to inform its members, pensioners and beneficiaries that the Fund has not received such a proposal nor has it been consulted on the COSATU proposals or any other proposals to reduce Eskom debt.

If the GEPF is approached with a proposal that requires investing in Eskom, such a proposal will be considered on its merits in the best interests of members, pensioners and beneficiaries.

Issued by Government Employees Pension Fund

For more information please contact:

Matau Molapo, Communications division

T: +27 (0) 12 424 7315

M: +27 (0)79 1910 757


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GEPF investments portfolio registers a positive 2.6% growth despite weak SA economy


Thursday, 5 December 2019. Johannesburg – The Government Employees Pension Fund (GEPF) is pleased to announce its financial results for the year ended 31 March 2019.

Despite the tough economic conditions and low economic growth rate in South Africa, the GEPF had a return on investments of 2.6%, equating to R 47 billion during the 2018/9 financial year. The Fund’s market value of assets was R 1.82 trillion in the year under review, increasing by R 17 billion compared to the previous year.

The growth of the fund’s assets is pleasing as it is in contrast to the collective performance of the top 300 pension funds in the world whose assets under management (AUM) decreased by 0,4% in 2018.

The GEPF has also continued to generate healthy long-term returns in line with its long-term investment strategy. The accumulated funds and reserves grew an average of 11.2 % during the period 2009 – 2019.  This performance is in line with our approach of long-term growth in pursuit of sustainable risk-adjusted returns.

Despite the prevailing economic headwinds, the Fund’s annual return exceeded its benchmark return of 2.3%. This was due to improved performance from commodity prices, which favoured the Fund’s tactical overweight position in resources shares relative to its benchmark. The long-term returns were largely driven by the performance of the local equity and bond markets, which was favourable over the long term.

The financial results once again highlights that the performance of the fund is not isolated from the country economic and development constraints. If the GEPF is to address this dependence, it has to consider further diversification including increasing its off-shore investments.

It is important to note that the GEPF invests in line with international best practice, diversifying its portfolio of investments through the PIC and other asset managers, to reduce its exposure to any one market risk, and thereby maximizing its return on investments. These decisions are guided and made in accordance with GEPF’s strategic asset allocation policy and risk management systems.

The fund also experienced an increase in member contributions by 7.1% during the reporting period, representing an R 5 billion increase from R 70 billion in 2018 to R 75 billion in 2019.  Benefits to members upon resignation, retirement, death and funeral benefit also increased.

The total benefits paid during the year under review increased by R 8 billion, mainly due to the increase in pension payments ,which accounted for 45,8% of the total increase. The increase in the pension payments were driven by the 5.5% monthly increase granted to pensioners from 1 April 2018 and a 3% increase in the number of pensioners. Whilst the number of pensioners increased, the fund experienced a slight decrease in active members by 0.6% to 1 265 421 members (2018: 1 273 125)

The funding level is the Fund’s financial gauge. The higher the funding level, the better the financial situation. The results of the March 2018 actuarial valuation show that the Fund is 108.3% funded, i.e. there are sufficient assets to cover the actuarial liabilities in full.

The GEPF is keenly aware of the important role it plays in the South African economy, and that its members, pensioners and beneficiaries are impacted by economic, social and environmental challenges, in recognition of which the GEPF directed 5% of its total portfolio towards domestic development inclusive of infrastructure, transformation, sustainability priority sectors and small –medium enterprises.

The GEPF appreciates to its implementing agencies, the Public Investment Corporation (PIC) and Government Pension Administration Agency (GPAA) for the work they do to ensure that the GEPF fulfils its mandate.


The Audited Financial statement can be reviewed on the GEPF website on

Issued by Government Employees Pension Fund

For more information please contact:

Sonke Dandala, Brand Manager

T: +27 (0) 12 424 7340

M: +27 (0)84 665 1006


About the Government Employees Pension Fund

The Government Employees’ Pension Fund is one of the largest pension funds in the world, with over 1.2 million active members and over 450 000 pensioners and beneficiaries. Our core business, governed by the Government Employees’ Pension Law (1996), is to manage and administer pensions and other benefits for government employees in South Africa. We work to give members and pensioners peace of mind about their financial security after retirement and during situations of need by ensuring that all funds in our safekeeping are responsibly invested and accounted for and that benefits are paid out efficiently, accurately and on time.

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Minister of Finance appoints new GEPF Board

The Minister of Finance, Mr Nhlanhla Nene yesterday convened the first sitting of the new Government Employees Pension Fund (GEPF) Board of Trustees following the end of tenure of the previous Board.

The new Board elected Dr Renosi Mokate as Chairperson and Mr Edward Kekana as Vice Chairperson. Both Trustees have been re-appointed to the GEPF Board.
The Board of Trustees comprises of 16 members, eight nominated by employer and the other eight nominated by employees. The names of the new Board of Trustees is as follows:

Employer Representative Trustees

Department – Name
National Treasury – Mr Stadi Mngomezulu (Re-appointed)
Department of Defence- Maj Gen Mulungisa Sitshongaye
State Security Agency – Ms Jennita Kandailal
Department of Basic Education – Dr Morgen Pillay (Re-appointed)
DPSA – Mr Thabo Mokwena
SAPS – Lt Gen Lineo Ntshiea
Specialist – Dr Renosi Mokate (Re-appointed)
Specialist – Mr Themba Gamedze (Re-appointed)

Employee Representative Trustees
Department – Name
NEHAWU – Ms Kgomotso Makhupola (Re–appointed) 
SADTU – Mr Edward Kekana (Re-appointed)
NATU- Mr Alan Thompson 
PSA – Mr Pierre Snyman (Re-appointed)
DENOSA – Mr Sibonelo Cele
POPCRU – Adv Makhubalo Ndaba (Re-appointed) 
Uniformed Services – Col Johan Coetzer (Re-appointed)
Pensioner – Dr Frans le Roux (Re-appointed)

The GEPF Chairperson Dr Renosi Mokate welcomed trustees to the GEPF Board and wished them well in their term of office. She thanked the previous Board with whom she had worked with and congratulated them on their achievements over the last four years. GEPF Principal Executive Officer (PEO) Abel Sithole said, “The staff of the GEPF and I welcome the new Trustees to their positions and look forward to their contribution and guidance in the services of members, pensioners and beneficiaries”.

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Statement by the Government Employees Pension Fund on the suspension of PIC Officials

The Government Employees Pension Fund (GEPF) is extremely perturbed by the latest announcement by the Public Investment Corporation (PIC) that it has suspended its Executive Head of Listed Investments, Mr Fidelis Madavo and the Assistant Portfolio Manager, Mr Victor Seanie, following a preliminary investigation report that reflects the flouting of governance and approval processes with respect to the Ayo Technology Solution transaction.

Of serious concern to the GEPF is that the PIC had assured the GEPF on numerous occasions and in correspondence that correct governance processes were followed with respect to the Ayo Technology Solutions transaction. The GEPF views this as a serious breach of trust.

The PIC invested in Ayo Technology Solution as part of the listed portfolio mandate. Thus at the time of its listing, the investment in Ayo fell outside of the unlisted investment portfolio within which there are set governance processes and there are limits set for the PIC to engage the GEPF.

Although the total unlisted investments portfolio comprises less than 5% of the total assets of the Fund, it represents a significant amount of funds. These are funds that the GEPF invests into, contribute to the real economy of the country and to drive transformation but still aiming to realise it main objective of maximising returns. When the actions of officials bring this intention into question, it undermines the objective to invest in the real economy of the country and may lead to a review that may deprive the economy of greatly needed investment.

Despite the apparent failures on this and other investments, the overall performance of the PIC as an asset manager remains positive and in line with agreed criteria. Nonetheless, the GEPF continues to heighten its monitoring and oversight.

The GEPF requests of the PIC Board to urgently finalise its investigations of alleged impropriety with respect to the Ayo transaction and others and take appropriate action where it is warranted.

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GEPF change rules regarding pension debt on divorce

Following the gazetting of the Government Employees Pension Law Amendment Bill on 23rd May 2019, the Government Employees Pension Fund (GEPF) will, once the amended rules are implemented, no longer subject a member to a debt model in executing a divorce settlement. Instead the new amendment provides for the reduction of pensionable service of the GEPF member that is equal to the value of the divorce settlement amount paid. 

This amendment to the law removes the pension debt that accrued to the GEPF member when a portion of their pension was paid out by the GEPF as a divorce settlement. This pension debt calculation created the perception that members could find themselves owing money to the GEPF when they retired. 

The amendment now ensures that rather than creating a debt, there will be an adjustment to the member’s pensionable service following the payment of a divorce settlement by the GEPF. This means that the benefit that will be paid to the member upon retirement will now be decreased by reducing the members’ years of pensionable service to take into account the pension interest of the member that was given to the spouse upon divorce. 

Therefore, members will receive their full benefit after the reduced pensionable service has been affected. Members who have more than ten years of pensionable service will still be entitled to a lump sum and a monthly pension upon existing the fund, however at a reduced value. Following this law change, the GEPF is currently developing and gazetting rules that will govern the implementation. It is expected that this process will be finalised in July 2019 and the implementation of the new rules will come into effect as of the 01st August 2019. 

Parallel to the process above, the GEPF will be writing to all affected GEPF members in July 2019 to inform them about how these changes are going to affect their pensions and service period and allow them the opportunity to opt from the old divorce debt model into the service reduction model. The affected members will have up until the 22nd May 2020 to indicate their choice of either remaining with the debt and interest model or move to the service adjustment model approach. Currently affected members who fail to indicate their choice by 22 May 2020 will automatically be converted into the new approach. Post 22 May 2020 all members who have a legal divorce claim against their pension will be subjected to the service reduction model. 

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Government Employees Pension Fund pensioners will receive a 5.2% annual pension increase.

Government Employees Pension Fund (GEPF) announced today that an annual pension increase of 5.2% to its pensioners with effect from 1 April 2019. 

The GEPF has granted this increase to enable pensioners to keep up with rises in inflation. 

The pension increase is based on the 5.2% inflation rate for the 12 months ending 30 November 2018 released by Statistics South Africa on 12 December 2018 thus making the increase equal to 100% of Consumer Price Index (CPI) and higher than the 75% of Consumer Price Index (CPI) provided in terms of GEP Law and Rules. 

Pensioners whose pensions commenced after 1 April 2018 will receive a proportionate increase based on the number of months they have been in receipt of a pension by 31 March 2019. 

It must be noted that increases such as this increase which is above what is provided for in GEP Law and Rules is granted at the discretion of the Board taking the Fund’s investment performance into account. 

An analysis of the assets held by the Fund in relation to the valuation of its liabilities undertaken in March 2018 showed that the Fund is 108.3% funded, which means that there are sufficient assets in the fund to cover its actuarial liabilities in full. 

This funding level as been achieved despite, amongst others, the: 

• increase in the number of pensioners 

• pension increases 

• increase in resignation pay-outs 

• increase in funeral benefits from R7 500 to R15 000 upon death of a member, pensioner or spouse as well as the funeral benefit increasing from R 3 000 to R 6 000 for eligible children 

• the introduction of the Child Pension which replaced the Orphan’s Pension. 

Benefit improvements over the years together with investment performance, salary and pension increases result in changes in both the minimum and long term funding level. 

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Board Letter to GEPF Members and Pensioners About the PIC Inquiry

Dear Members / Pensioners 

As many of you are aware, the Public Investment Corporation Inquiry established by President Mr Cyril Ramaphosa, to probe allegations of impropriety at the Public Investment Corporation (PIC) has begun. 

The Government Employees Pension Fund (GEPF) supports the establishment of the inquiry as we believe it will result in a stronger and more effective Public Investment Corporation. In this regard, the GEPF has written to the PIC Inquiry indicating its willingness to cooperate fully with the inquiry. 

We have also noted with concern the recent suspensions of senior PIC employees as well as the instituting of a forensic investigation by the Board of the PIC into allegations of impropriety against certain directors of the Board. The GEPF views such matters in a very serious light and as such, we have written to the PIC raising our concerns with respect to these matters, including the alleged governance failures at the PIC. 

It is understandable that the revelations at the inquiry and the alleged governance failures are as much a concern to you, our members and pensioners, as it is to us at the GEPF. 

I would like to assure you that the GEPF is in a very sound financial situation and that such issues will not have an impact on your pensions and benefits. Despite the indications of apparent failures and or circumvention of processes with regard to a number of investments, the overall performance of the PIC as an asset manager remains positive and in line with agreed criteria. Nonetheless, the GEPF continues to heighten its monitoring and oversight. The board and management of the GEPF takes its fiduciary duties very seriously and is committed to ensuring that our fund continues to grow. 

Yours sincerely, Abel Sithole Principal Executive Officer GEPF

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The GEPF is a Defined Benefit fund. The Rules of the Fund stipulate that the benefit payable to a member on retirement is based on his or her pensionable salary and years of membership in the Fund. The benefit payable is not related to the contributions received on behalf of that member. Where a member retires with less than 10 years of service or withdraws from the Fund prior to retirement, the member receives his or her Actuarial Interest in the Fund, which is the estimated value of the benefit that the member has built up in the Fund to the date of exit. Put another way, it is the amount of money the Fund is holding in order to fund the expected future benefit payment to the member. 

The total of the Actuarial Interest values for all members and pensioners is compared to the total assets held by the Fund to determine whether the Fund has sufficient assets to meet its liabilities – this is done formally every two years as part of the Actuarial Valuation of the Fund by a valuator who an independent expert in this field and is approved by the regulator. An extract of the valuation results is also reflected in the Fund’s published Annual Report. 

Actuarial Interest values are calculated by applying a formula based on the following: 

1. The average pensionable (or basic) salary in the last two years prior to exit; 

2. The years of membership with the Fund; 

3. Any purchase of service or money transferred into the Fund from other funds; and 

4. A factor – called an Actuarial Interest Factor – based on the member’s age and whether the member is a “Services” member or an “Other” member. 

In calculating the actuarial interest, the Fund determines, for each member, the potential benefit that would be payable in each future year for each type of exit (that is, resignation, death, retirement, etc.). Since the Fund has no way of knowing when and how each member will exit and what the member’s salary will be at the date of exit, this calculation requires that various assumptions be made about the future economic conditions and the demographics (profile) of the entire membership. 

The demographic and economic assumptions are reviewed as part of each Actuarial Valuation of the Fund to ensure they remain appropriate and in line with the actual experience to give the best possible estimate of each member’s Actuarial Interest value in the Fund. 

• The demographic assumptions relate to the expected number of withdrawals, deaths and retirements of members at each age and how long pensioners are expected to live. These assumptions are specific to the Fund as they are calculated from the actual experience of the Fund- this is the best available indicator of what is likely to take place in the future. 

• The economic assumptions relate to the expected level of future inflation, interest rates and investment returns (which are calculated from investment market information), salary increases (which are calculated relative to inflation) and pension increases (which are based on the pension increase policy of the Fund). 

As the demographic experience of the Fund and economic circumstance change, it has to be reflected in the demographic and economic assumptions. The Actuarial Interest Factors, and therefore Actuarial Interest values, can increase or decrease as a result of any change in the demographic and economic assumptions. This will, in turn, reflect in a change in the current value of each member’s benefits in the Fund. These changes are not the result of a decision by the Board of Trustees, the employer (government) or employee representative (trade unions).

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