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Fin24 reports that the head of the Government Employees Pension Fund (GEPF), Abel Sithole, says the fund remains financially sound and employers would not need to increase contributions, despite concerns raised by Alexander Forbes Financial Services in a valuation.
The GEPF is Africa’s largest retirement fund, with over 1.2 million active members and more than 400,000 pensioners and beneficiaries. An Alexander Forbes actuarial valuation reported that, as of March 2018, the fund was facing a contribution shortfall of R5.6bn per year, or about 0.34% of its liabilities. The fund also has considerable exposure to contentious investments made by the Public Investment Corporation asset manager, including in IT group AYO Technology Solutions and Steinhoff International Holdings. The PIC invests on behalf of the pension fund. Speaking on Thursday, Sithole, the fund’s principal executive officer, said there was no cause for alarm and that the Alexander Forbes report had been subjected to varying interpretations. "The fund is doing very well and is financially sound. The accountants and the actuaries say so," he assured. Sithole added that the GEPF was in a position to continue paying out benefits at rates comparable to past years and that “the reason why the shortfall is not a big issue is because we remain well-funded.
- Read the full original of Khulekani Magubane’s on the above at Fin24
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