Latest News

03 May 2022 

PRETORIA – The Government Employees Pension Fund (GEPF) and the Public Investment Corporation (PIC) have signed a new unlisted developmental investment mandate. The GEPF is the largest pension fund in Africa, with assets in excess of R2.1 trillion, which are managed by the PIC.

The GEPF first introduced the unlisted developmental investment mandate in 1997 under the name Isibaya Fund and subsequently renewed it over the years. The developmental investment funds are aimed at generating financial and socio-economic benefits by addressing structural imbalances in the economy to facilitate transformation, economic growth, job creation, and environmental and financial returns.

The developmental mandates focus is on South Africa and the rest of Africa. The target of developmental investments for South African is between R300 million and R500 million per entity although attractive investments starting at R100 million will be considered per entity. The Rest of Africa developmental investment portfolio shall mainly comprise of investments between USD20 million and USD40 million.

The PIC encourages interested institutions to submit proposals to this portal: https://www.pic.gov.za/apply-for-funding/isibaya Proposals will be assessed in accordance with the prescripts of the funding guidelines of each mandate.

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Issued by
PIC Corporate Affairs
Email: media@pic.gov.za

Cape Town: Tuesday, 29 March 2022

The Western Cape regional office of the Government Employees Pension Fund (GEPF) is relocating to new premises. The office, previously located at Thibault Square, Standard Bank Building in Long Street, Cape Town, will start operating from the Buitengracht Centre at 125 Buitengracht Street from Thursday 31 March 2022.

The new premises have a much bigger working area and office space; thus, the walk-in service center will be able to accommodate more people inside as opposed to clients queueing in the streets where they are often forced to contend with the harsh elements and may potentially be exposed to threats to their safety.

According to Mario Johns, GEPF Branch Manager in the Western Cape, the GEPF is committed to ensuring that its members, pensioners, and beneficiaries receive quality services and that those services are offered in the most comfortable, safe, and client-friendly environment. The operating hours are from 07:00 to 16:00.

In trying to get services closer to the people, the GEPF has nine (9) walk-in centers and seven (7) satellite offices across the country.

The GEPF is Africa’s largest pension fund with more than 1.2 million active members and over 473 000 pensioners and beneficiaries. It is a defined benefit fund that manages pensions and related benefits on behalf of government employees that currently boast assets worth more than R2.09 trillion.

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For more information please contact:
Rakgwatha Mokou (Manager: Media and Stakeholder Relations)
Telephone: +27 (0) 12 319 1126
Mobile: +27 (0) 81 814 0030
Email: Rakgwatha.Mokou@gpaa.gov.za

Mack Lewele (Senior Manager: Communications)
Telephone: +27 (0) 12 399 2543
Mobile: +27 (0) 82 450 5076
Email: Mack.Lewele@gpaa.gov.za

PRETORIA, 07 MARCH 2022

The Government Employees Pension Fund (GEPF) announced that an annual pension increase of 5.5% will be granted to its pensioners as at 1 April 2022.

This pension increase is based on the 5.5% inflation rate for the 12 months ending 30 November 2021 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 who retired on or before 1 April 2021 are to receive the full increase of 5.5 % as of 1 April 2022. Pensioners who retired after 1 April 2021 are to receive a proportionate increase based on the number of the months they have been in receipt of pension by 31 March 2022.

The GEPF has granted this increase to enable pensioners to keep up with rises in inflation. These increases are based on the affordability of the Fund at the given time. An affordable increase is one that can be granted without placing a strain on the sustainability of the Fund including current needs and future financial health of the Fund in order to continue paying benefits that are promised to our members.

When setting the pension increase, we consider:

• the investment returns earned over the year,
• the level of inflation over the same period,
• how both relate to the assumptions adopted in the statutory valuations and more importantly,
• how the increase will impact the financial position of the Fund.

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

Pensioners will receive individual letters illustrating the new values of their pensions as of 1 April 2022

Note to Editors

GEPF is governed by the Government Employees Pension (GEP) Law of 1996, as amended, and the rules that accompany it. These rules, along with GEPF’s Pension Increase and Funding Level policies, give firm guidelines on how the Fund must decide the annual increase that is paid to pensioners.

These documents state that GEPF’s Board of Trustees may approve a pension increase after consideration was given to the financial conditions of the Fund and the effect of the proposed increases on the Fund.

This minimum funding level states that the Fund’s assets must be able to cover at least 90% of its liabilities. This means that what the Fund owns (its assets) must be able to cover the cost of at least 90% of what it owes in terms of the current and future pension payments that it is committed to pay (its liabilities). According to the rules, the Fund may thus only approve an increase that it can afford.

For more information, please contact:

Matau Molapo,

GEPF Stakeholder Management and Communications Division

T: +27 (0) 12 424 7315

M: +27 (0)79 1910 757

E: Matau.molapo@gepf.co.za

09 November 2021, Pretoria

The Government Employees Pension Fund (GEPF) is pleased to announce its financial results for the year ended 31 March 2021.

Key Performance Indicators:

• Market value of R2.09 trillion increasing by R451 billion from the previous financial year
• The Fund reached the significant milestone of R2 trillion in its 25th year anniversary of its founding
• Investment market value increased by 27.5%
• Return on Investment of 23.1%
• Accumulated funds and reserves grew at an average annual rate of 8.90% for the 10 year period 2012-2021
• Net investment income of R 483.8 billion following benefit payments of R 110.6 billion
• Member contributions of R82 billion

Despite the turbulent and unpredictable market conditions during the financial year, the GEPF recorded a market value of R2.09 trillion at the close of its financial year on 31 March 2021. This was an increase of 27.5% resulting in a return on investment of 23.1%. Over the 10-year period, 2012-2021, the GEPF’s accumulated funds and reserves grew at an average annual rate of 8.90%.

The growth in the value of assets under management (AuM) confirms that the GEPF’s investment strategy aimed at achieving long-term growth is successfully contributing to the financial soundness of the Fund.

This positive performance is as a result of a recovery of R451 billion in the Fund’s market value following a decline of 11.4 % (R260 billion) in the previous financial year where the Fund’s market value was R1.6 trillion.

The increase in the investment value is mainly attributable to the recovery in financial markets, particularly equities and bonds, from the market contraction in the first quarter of 2020. The Fund’s performance however was negatively impacted by its unlisted and property portfolios declining which bore the brunt of market conditions as a result of the impact of the Covid-19 pandemic on the economy.

In this regard, impairment provisions had to be made to reflect the business reality of an asset at a particular point in time. As a result, the GEPF implemented a very conservative valuation of its unlisted and property assets. Such a valuation approach was done fully aware that improved market conditions could see assets subsequently recover or even exceed the value of the original investment.

We have seen a reversal of R2.1 billion in some of our assets impaired in previous years. A further encouraging sign has been the decrease in the value of impairments from R11.9 billion as at 31 March 2020 to R7.4 billion at 31 March 2021.

Despite the tough Covid-19 operating environment, the total benefits paid by the Fund amounted to R 110.6 billion. Our pension administrator, the GPAA received 27 960 pension claims in 2020/21 compared with 34 134 in 2019/20, reflecting a decrease of 18% in claims. The retirement claims amounted to R76 billion compared to R69,1 billion in the previous year. The Fund’s active members decreased from 1 269 161 in 2019/20 to 1 265 406 in 2020/21. The number of pensioners in the Fund also declined from 313 173 in 2019/20 to 312 647 in 2020/21.

In an effort to enhance and strengthen our oversight and monitoring of the Government Pensions Administration Agency (GPAA) and the Public Investment Corporation (PIC), the GEPF has taken several steps during the financial year. These include:

• A comprehensive review of the Fund’s investment policy, investment mandate and management agreements with the PIC. These include a more stringent consequence management, a review of the fee models and improved investment and reporting guidelines.
• A review of the Fund’s operating model and quality of service provided by the GPAA. This review includes the benchmarking of administrative systems to meet the needs of the GEPF and its clients.

The GEPF continues to remain optimistic of the future growth of the Fund and we will continue to play our part in growing the South African economy.

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The Audited Financial statement can be reviewed on the GEPF website on www.gepf.co.za

Issued by Government Employees Pension Fund

For more information please contact:

Matau Molapo, Communications

T: +27 (0) 12 424 7315

M: +27 (0)79 1910 757

E: Matau.molapo@gepf.co.za

05 November 2021

The Government Employees Pension Fund welcomes the appointment of the new Public Investment Corporation (PIC) Board announced by Cabinet.

The GEPF chairperson, Dr Renosi Mokate, on behalf of the GEPF Board of Trustees and its Executive Committee congratulates the new Board on their appointment.

The GEPF wishes to thank the outgoing Board for its efforts in laying a foundation to strengthen the governance and reputation of the PIC, and is committed to working with the newly appointed Board in the continuation of this work.

The PIC‘s growth and integrity are crucial in the protection of the retirement benefits of GEPF members, pensioners and beneficiaries.

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For more information please contact:

Matau Molapo, Communications

T: +27 (0) 12 424 7315

M: +27 (0)79 1910 757

E: Matau.molapo@gepf.co.za