Government Employees Pension Fund (GEPF) and Public Investment Corporation (PIC) reassure its members and pensioners that their benefits and pensions are not at risk.
The GEPF adheres to strict regulations governing its financial liability to members, beneficiaries and pensioners, as well as its financial soundness. Moreover, the GEPF has confidence in the PIC’s ability to prudently invest funds on its behalf in terms of the agreed investment mandate. The GEPF constantly monitors and evaluates the PIC’s performance in accordance with its investment policy and mandates.
The GEPF would like to reiterate and to assure its members, pensioners and beneficiaries that their pension benefits are safe. They are also reminded that GEPF is a defined pension benefit fund which means the benefits are defined in terms of the rules of the Fund. The benefits are paid in terms of the rules and are not dependent on the investment returns of the fund or on the level of employer contributions. Members and pensioners should therefore not focus inordinately on the ordinary and normal fluctuations of the Fund’s individual investments, which is of greater interest to the GEPF Board of Trustees and the Minister of Finance.
In the past financial year 2015–2016, the assets of the Fund grew to over R1, 6 trillion. The GEPF achieved an overall investment performance return of 4% during this time. This enabled the Fund to grant a pension increase of 5, 3% to its pensioners which was above 100% of the Consumer Price Index (CPI) of 4, 8% as at November 2015. This is higher than the 75% increase recommended by the Rules of the Fund.
The GEPF’s investment strategy also uses a liability-driven approach that takes into consideration expected future benefit payments, the actuarial position, and other long-term objectives, as well as the risk to the overall solvency of the Fund which reflects steady growth and a sustainable long term investments.
GEPF has a solid track record of safeguarding the value of active members’ retirement savings and protecting its pensioners against inflation and it is currently one of very few large defined benefit pension funds in the world which is 100% funded after the 2008/2009 financial crisis. This reflects the Fund’s robust investment strategy and its ability to adapt to dynamic and turbulent market forces.
GEPF affirms that the well-being of all of its members and pensioners is the reason why it exists.