GEPF mourns the passsing of Substitute Trustee, Mr. Terence Chauke
Date: 15 September 2021
The Government Employees Pension Fund (GEPF) is shocked and saddened by the passing of board member and employer-nominated subtitute trustee, Mr. Terence Chauke on 12 September 2021.
Mr. Chauke served as an employer – nominated substitute trustee on the GEPF Board. He was also a member of various committees including the Finance & Audit Committee, Investment Committee, Valuations Sub-committee as well as the Social & Ethics Sub-committee.
GEPF Chairperson of the Board, Dr Renosi Mokate, on behalf of the Board and staff members passes her deepest condolences to the Chauke family, their colleagues and friends.
The GEPF acknowledges the dedication, diligence and professionalism with which Mr. Chauke served the Fund. The Fund will forever be grateful for his tireless contribution and dedication to its members, pensioners and beneficiaries.
May his soul Rest in Peace.
Issued by: Government Employees Pension Fund
THE GEPF LAUNCHES THE GOVERNMENT EMPLOYEES PENSION OMBUD (GEPO) OFFICE
01 July 2021
The Government Employees Pension Fund (GEPF), today officially launched the Government Employees Pension Ombud (GEPO). The Ombud, which is an independent internal structure of the GEPF has been set up to deal with administrative complaints against the GEPF from its members, pensioners and beneficiaries.
“The purpose of the GEPO is to facilitate, investigate, determine and resolve complaints lodged by members, pensioners and beneficiaries of the GEPF in a fair, impartial and timely manner”, says the Chairperson of the GEPF, Dr Renosi Mokate. “Furthermore, the GEPO provides an informal yet accessible and cost-effective alternative to other remedies, such as court proceedings.
I would like to express our appreciation to retired Judge Bakone Justice Moloto and Advocate Makhado Ramabulana for the work done to establish the Ombuds Office”, she concluded.
Advocate Makhado Ramabulana will act as the Ombud effective from 1 July 2021. Advocate Ramabulana graduated with a BA Law and LLB degrees from the University of Venda, before joining the Cape Bar where he practised as an advocate from July 1999 to July 2004. He has held various roles within the pension funds industry including in the office of the Pension Funds Adjudicator, Financial Services Conduct Authority (FSCA) and remains a Trustee on various Pension Fund Boards. A detailed profile of Advocate Ramabulana is provided with this press release.
The GEPO, which is a first for the GEPF, is mandated to investigate administrative complaints lodged against the Fund by GEPF members, pensioners and beneficiaries. Amongst others, the Ombud will engage on matters related to:
- Unreasonable delays in processing of payments that are due
- Failure of officials to perform their duties in terms of the Fund’s law and rules
- Breaking of a commitment without a justifiable reason
- Providing incorrect or misleading information
Detailed guidelines on how to lodge a complaint is available for the benefit of members, pensioners and beneficiaries on the GEPO website at www.gepo.co.za with the option to lodge the complaint on the website. Complaints can also be submitted in writing or emailed to the:
Office of the Ombudsman Attention:
Complaints Manager, PO Box 11005 Hatfield, Pretoria, 0028
Email: enquiries@gepo.co.za
Telephone: 012-110-4950
Issued by Government Employees Pension Fund
About the Government Employees Pension Fund
The Government Employees Pension Fund is among the largest pension funds in the world, with over 1.2 million active members and over 450 000 pensioners and beneficiaries. It is founded and regulated in terms of the Government Employees Pension Law (1996) and its mandate is to manage and administer pensions and other benefits for government employees in South Africa.
We work to give members, pensioners and beneficiaries’ peace of mind about their financial security after retirement. We do this, by ensuring that all funds in our safekeeping, are responsibly invested and accounted for and that the benefits due, are paid efficiently, accurately and timeously.
Hostage incident at GEPF eThekwini Regional Office
Date: 10 June 2021
Pretoria – Government Employees Pension Fund (GEPF) is aware of reports of a hostage incident at its eThekwini regional office. We have been informed that an aggrieved GEPF client held officials of the Government Pension Administration Agency (GPAA) hostage at the office.
The GEPF has been informed that there was no harm to anyone. The member has been detained by the South African Police Services (SAPS) and remains in their custody.
The GEPF is appreciative of the efforts of the South African Police Service, office security personnel and employees in dealing with the incident. The necessary counselling will be provided to the affected officials.
The GEPF remains committed to engaging with its members with respect to any concerns they have.
END
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
GEPF pensioners will receive a 3.2% annual pension increase as of 1 April 2021
Date: 15 March 2021
Pretoria – Government Employees Pension Fund (GEPF) announced today that an annual pension increase of 3.2% is to be provided to its pensioners with effect from 1 April 2021.
This pension increase is based on the 3.2% inflation rate for the 12 months ending 30 November 2020, in line with policy and past practice, thus making the increase equal to 100% of Consumer Price Index (CPI) and higher than the 75% of CPI provided in terms of GEP Law and Rules.
Pensioners who retired on or before 1 April 2020 will receive the full 3,2% increase as of 1 April 2021, while pensioners who retired after 1 April 2020 will have their pensions increased proportionally for each month of retirement between the date of retirement and 31 March 2021, with effect from 1 April 2021.
It must be noted that increases such as this increase which is above what is provided for in GEP Law and Rules are granted at the discretion of the Board of Trustees of the GEPF taking the Fund’s investment performance into account.
END/
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.
Government Employees Pension Fund Stakeholder Perception Survey
NOTICE TO:
Members, Pensioners and beneficiaries
We at the Government Employees Pension Fund (GEPF) are constantly striving to improve the level of service that we provide to our stakeholders. To arrive at a deeper understanding of the needs of our stakeholders, we have commissioned AfricaScope South Africa to undertake a comprehensive perception survey within our stakeholder group.
The focus of the survey will be to ascertain our stakeholder perceptions of the GEPF by means of telephonic and/or online questionnaires. The results of the survey will assist the GEPF in its efforts to be more efficient and effective.
AfricaScope will be drawing a completely random sample of individuals from out datasets. We wish to stress that the process is completely scientific and random and in no way targets any particular individuals or groups of individuals. Under their code of professional ethics, they may not divulge to GEPF any personal details of any participating individual and therefore you can be assured that any responses you provide will be totally anonymous.
If you are selected to participate in the survey, we respectfully urge you to please participate and to give your honest answers to the questions asked. In that way we at GEPF will be able to fully understand the needs and wishes of our valued stakeholders.
The survey began during the month of February and is currently in an advanced planning stage. AfricaScope will be contacting the first respondents within the next weeks.
You will be given the choice of completing the survey telephonically or on-line.
Thank you
Issued by the:
Government Employees Pension Fund (GEPF)
GEPF mourns the death of trustees
Date: 03 March 2021
The Government Employees Pension Fund (GEPF) is shocked and saddened by the passing of longtime board member Dr. Frans le Roux on 2 March 2021 and substitute trustee Corporal Thobile Maqhubela on the 18th February 2021.
Dr. Le Roux served as a pensioner-elected trustee on the GEPF Board as well as a member of the Benefits and Administration Committee and the Investment Committee.
Corporal Thobile Maqhubela, who was an employee – nominate substitute trustee served on the Benefits and Administration Committee and the Finance and Audit Committee.
GEPF Chairperson of the Board, Dr Renosi Mokate, on behalf of the Board and staff members passes her deepest condolences to the Le Roux and Maqhubela families, their colleagues and friends.
The GEPF acknowledges the dedication, diligence and professionalism with which both trustees served the Fund. The Fund will forever be grateful for their tireless contribution and dedication to its members, pensioners and beneficiaries.
May their souls Rest in Peace.
Issued by:
Government Employees Pension Fund
GEPF mourns the passing of two Board Members
Date: 05 January 2021
The Government Employees Pension Fund (GEPF) is shocked and saddened by the passing of two of its Board Members, Mr Alan Thompson and Dr Lese Matlhape on 04 January 2021.
Dr Lese Matlhape served as a specialist trustee on the Remuneration Committee since 2015 while Mr Alan Thompson served as a Trustee on the Board as well as a member of the Finance and Audit Committee and the Benefits and Administration Committee from 2018.
GEPF Chairperson of the Board, Dr Renosi Mokate, on behalf of the Board and staff members passes her deepest condolences to the Thompson and Matlhape families, their colleagues and friends.
The GEPF acknowledges the dedication, diligence and professionalism with which the two Trustees served the Fund. The Fund will forever be grateful for their selflessness and dedication to its members, pensioners and beneficiaries. May their souls Rest in Peace.
Issued by:
Government Employees Pension Fund
GEPF ANNUAL RESULTS AS AT FINANCIAL YEAR-END MARCH 2020
GEPF NAVIGATES STRONG HEADWINDS
Monday, 16 November 2020, Pretoria
Main Points
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GEPF asset market value declined by 11.4% from R1.8 trillion in 2019 to R1.64 trillion in 2020. This decrease in the investment value is mainly attributable to the losses incurred in March 2020 as a result of the impact of Covid-19, the downgrade in credit ratings and a persisting low growth environment.
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Income received during the financial year included:
✓ Dividend income – R34.1 billion
✓ Interest income – R52.3 billion
✓ Property income – R1.8 billion
✓ Contributions received – R 80,2 billion
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Benefits paid upon member’s resignation, retirement, or death was R111 billion which was an increase of R 8.4 billion against 2018/19 financial year payments. This was mainly due to an increase in pension payments which accounted for 62% of the total benefits paid which was driven by the 5.2% monthly increase granted to pensions and a 3.1% increase in the number of pensioners.
As at 31 March 2020, the end of the financial year 2019/2020, the Government Employees Pension Fund, Africa’s largest pension fund reported a decline in its investment portfolio of R243 billion largely impacted by the turmoil in the South African and global economy in the last quarter of the 2019/2020 financial year.
However, due to the resilience of the GEPF investment strategy, the Fund has recovered the losses incurred and its unaudited value is currently R1.9 trillion. This recouping of losses clearly indicates that the GEPF remains financially sound despite the tough economic conditions that the Fund operated in, in the 2019/2020 financial year.
The financial results however continue to highlight that the performance of the Fund is not isolated from the country’s economic and development constraints. The poor state of the South African economy had a significant impact on the Fund, as the economic climate in the three months leading to 31 March was extremely turbulent and coincided with the end of the Funds 2019/2020 financial year.
Much of the decline in the Funds market value was due to the performance of local equities, capital markets and listed property. The decline in international asset classes was offset by a significant decline in the value of the rand against the dollar. The value of the assets reflects depressed market values as at 31 March 2020.
In the context of a uniquely challenging economic environment, the GEPF did sustain an acceptable overall investment performance with income of R168, 4 billion as a result of investment income of R88, 2 billion and contributions of R80, 2 billion. The fund outperformed its benchmark by 0.22%.
The adverse economic climate in South Africa led to the sharp rise in the bond yields in March 2020 resulting in the value of the Fund’s liabilities reducing considerably as at 31 March 2020. This reduction in liabilities would have resulted in the funding level of the GEPF increasing but the unintended consequence would have been a marked decrease in member exit benefit values (calculated using the Actuarial Interest Factors derived from the actuarial valuation) for the upcoming years, until the results of the next statutory valuation is approved.
Given the abnormal economic shocks and the impact on member benefits, the Board of Trustees resolved to carry out an interim valuation as at 31 March 2020 that will be followed by a statutory valuation as at 31 March 2021. The postponement of the statutory valuation to March 2021 is still within the timeframe prescribed for actuarial valuations by the Government Employees Pension Law.
Benefit payments to members will continue to be made in accordance with the approved Actuarial Interest Factors, which came into effect on 1 July 2019, until the statutory valuation as at 31 March 2021 is completed. These safeguards members from the adverse effect that would have resulted from adopting the Actuarial Interest Factors based on abnormal circumstances as at 31 March 2020.
In line with the Fund’s commitment to ensure all benefits due are paid, the total benefits paid during the year under review increased by R8.4 billion, mainly due to the increase in pension payments, which accounted for 49% of the total increase. The increase in the pension payments were driven by the 5.2% monthly increase granted to pensioners from 1 April 2019 and a 3.1% increase in the number of pensioners.
Whilst the number of pensioners increased, the Fund also experienced a slight increase in active members by 0.3% to 1 269 161 members (2019: 1 265 421).
The GEPF expects the difficult economic climate in South Africa to persist as the economy continues to contract. Following the conclusion of its consultation with the Minister of Finance on its asset-liability modelling the GEPF over a period, will begin to align its strategic asset allocation to match its liability profile. The strategic asset allocation determines how the GEPF allocates funds to asset classes locally and offshore.
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 continues to direct funds towards the development of the country, inclusive of infrastructure, transformation, sustainability, priority sectors and small –medium enterprises. Such investments however must ensure beneficial returns to the GEPF.
The GEPF expresses its appreciation 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.
/Ends
The Audited Financial statement can viewed on the GEPF website on www.gepf.co.za
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
E: Matau.molapo@gepf.co.za
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, moreover during situations of need by ensuring that all funds in our safekeeping is responsibly invested and accounted for and that benefits are paid efficiently, accurately and on time.
