Press Releases

MEDIA RELEASE

12 November 2024, Pretoria

The Government Employees Pension Fund (GEPF) is pleased to announce its financial results for the year ended 31 March 2024.

Key Performance Indicators:

• Market value of R2.38 trillion increasing by R61 billion from the previous financial year
• Investment market value increased by 2.6%
• Annual return of 4.9% compared to 3.5% in 2022/23
• Net investment income of R116.22 billion, interest income of R59.72 billion, property income of R 2.07 billion and a dividend income of R52.04 billion
• Member contributions increased by 10.8% to R91.94 billion

The 2023/24 financial year was turbulent and uncertain for investors in South Africa and globally. Despite the volatile environment, the GEPF portfolio remains financially strong and resilient recording growth of 2.6% to achieve a market value of R2.38 trillion, the highest in its history. This represents a growth of R61 billion and an annual return on investment of 4.9%. The GEPF’s 10- year annualised return was 7.2% for the period 2015-2024, demonstrating financial stability with a funding level of 110.1%.

Achieving growth amidst the volatile economic conditions illustrates that the Fund has been resilient, and the Fund’s investment strategies continue to protect its assets. The investment returns for the financial year are satisfactory, noting the tough and volatile conditions in the face of slow economic growth, high unemployment, global challenges of conflicts, high energy costs and inflation.

Active Membership increased by 0.84% from 1 267 307 in 2022/23 to 1 277 902 in 2023/24 and contribution income increased by 10.8% during the reporting period to R91.94 billion. Pensioners increased 4.3% from 336 629 in 2022/23 to 351 100 in 2023/24.

The Fund processed and finalised 35 523 retirement claims compared with 37 440 in 2022/23. The benefits awarded to these claims amounted to R22.6 billion (R22.3 billion in 2022/23) in gratuity payments and R77.6 billion in annuities compared with R70.4 billion in the previous year.

The total value of resignation benefits paid amounted to R27.6 billion (2022/23: R32,9 billion), R7.5 billion (2022/23: R9,8 billion) was paid in death benefits and funeral benefits worth R350.9 million were paid (2022/23: R416 million) totalling 24 380 claims (2022/23: 28 453). Spouse pension benefits to the value of R13.2 billion (2022/23: R12.1 billion) were paid to 174 188 beneficiaries (2022/23: 171 592) and R1.4 billion (2022/23: R948.8 million) was paid in child pension benefits to 23 477 qualifying children (2022/23: 15 809).

The Fund’s net cash flow position was R59.71 billion as at 31 March 2024. This is largely attributable to net investment income received of R109.02 billion, contributions received of R91.94 billion and benefits paid of R141.35 billion. These figures illustrate the GEPF’s commitment to meet its financial obligations and pay benefits to its members, pensioners, and beneficiaries.

The GEPF continues to monitor the implementation of its investment strategy through the mandate given to the Public Investment Corporation (PIC) to ensure effective and efficient implementation. In the spirit of strengthening oversight capabilities, the GEPF continued to implement recommendations from the Mpati Commission.

Furthermore, the GEPF and its administrator, the Government Pensions Administration Agency (GPAA) have approved an enhanced GPAA modernisation roadmap and are actively working to enhance operational turn-around times. The GPAA experienced security breaches in the year under review. Accordingly, the GEPF reported to and engaged the Information Regulator regarding the data breach incidents. The GEPF continues to support the GPAA to build a more robust information technology environment.

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

Issued by Government Employees Pension Fund
For media enquiries:
Sonke Dandala Email:
sonke.dandala@gepf.co.za
Tel: 084 665 1006

Media Statement

Media Release
12 July 2024, Pretoria

The Government Employees Pension Fund is aware of an affidavit made by the former VBS Chairperson and the contents thereof. The GEPF will not comment at this stage about the contents of the affidavit including reference made to the GEPF Chairperson, as the matter is part of a legal process. The GEPF Chairperson has publicly issued a statement in his personal capacity on the matter.

Issued by:
Government Employees Pension Fund (GEPF)
For more information, please contact:
Matau Molapo
Email: matau.molapo@gepf.co.za
Tel: 012 424 7315 / 079 1910 757

Media Statement

Media Release
21 June 2024, Pretoria

The GEPF is pleased to announce that the Self-service portal and App are back online, effective from Friday, 21 June 2024. The Self-service portal and App have been rebuilt to ensure more robust platforms. The platforms provide security measures that protect members’ information from any cyber-attack or intrusion.

Members of the GEPF will be required to change their password, through the Self-service portal and App profile. This measure has been introduced to affirm the identity of the members accessing the information.

The Self-Service can be accessed through the GEPF app and the web portal through the GEPF website. We urge members to be cautious and not share their password with any third party. Passwords should be protected at all times. We further discourage members from allowing their device to save the password, unless the device has other security features to validate the user. Importantly, members must not access the app by connecting via any public Wi-Fi as this poses a security threat or risk.

For further enquiries, please email us on enquiries@gepf.co.za
For more information, please contact:
Call Centre: 0800 117 669 Email: enquiries@gepf.co.za

Issued by Government Employees Pension Fund (GEPF)

Media Statement

Media Release
09 May 2024, Pretoria

In a significant move to bolster support for members, pensioners, and beneficiaries during times of bereavement, the GEPF is pleased to announce a 25% increase in the funeral benefits for members. The purpose of GEPF funeral benefits is to help pay the funeral costs when a member or pensioner passes away. Funeral benefits are also paid out on the death of the spouse, life partner or eligible child of a member or pensioner.

This increase is effective from 1 April 2024 and will be applied retrospectively. All deaths occurring from 1 April 2024, will be eligible for the enhanced benefits. Dependents whose loved ones passed away from this date onwards and have already received a payment will also be eligible for a top-up to the benefit previously paid.

The enhanced funeral benefits are as follows:

• Member or pensioner: R20 000
• Spouse of member or pensioner: R20 000
• Eligible child: R8 000 per child; and
• Stillborn child: R8 000 per stillborn.

Previously, the funeral benefits for a member and pensioner were R15 000 and R6 000 for children and stillborn respectively.

The GEPF acknowledges the cultural and social significance of funerals within many South African communities, recognising them as essential rites that allow families to honour their loved ones with dignity. Aware of the financial strain these ceremonies can place on families, amplified by current economic challenges, the GEPF has acted to ease the burden.

It is after due consideration of these factors that the GEPF Board of Trustees (BoT) has increased the payment values of the funeral benefits to provide further assistance to families of GEPF members, pensioners, and beneficiaries during their time of bereavement. The decision reflects a deep understanding of the members’ and beneficiaries’ needs during such vulnerable times. This adjustment is designed to provide substantial relief, helping families focus on healing rather than financial stress.

Importantly, the criteria regarding how members, pensioners and beneficiaries qualify to submit a claim and the associated procedures for the funeral benefits remains unchanged. Details regarding the qualification criteria and procedures are outlined in detail on the GEPF website on the following link, https://www.gepf.co.za/funeral-benefits/

The GEPF is confident that the enhancement of the funeral benefits will contribute to easing the financial and emotional pressures on families, ensuring loved ones are commemorated with the respect and dignity they deserve.

/Ends
Issued by Government Employees Pension Fund

Media Statement

Media Release

Pretoria: 15 April 2024

The GEPF scored significantly above the median range compared to its local and global peers
of asset owners for responsible investing activities in the PRI 2023 Assessment Report.

PRI reporting is the largest global reporting project on responsible investment developed with
investors, for investors. The report facilitates learning and development by outlining how
signatories’ responsible investment activities compare year-on-year, across asset classes,
and with peers at a local and global level by providing high-level comparative data.

The GEPF scored exceptionally well across the various categories and in particular, on policy
governance and strategy, listed equity (active and passive) as well on fixed income and private
equity. The GEPF achieved scores ranging from 85 – 91%, well above the PRI median range
of between 40 – 65%, outperforming many of its local and global peers. The high scores signify
the GEPF’s commitment to include ESG factors in investment and ownership decision making
through the consistent application of fiduciary responsibility, in line with PRI Principle 6.

The impressive scores and stars achieved by the GEPF in the assessment report are listed
below:
• Policy governance and strategy: 81% and 4-stars (PRI median: 40-65%)
• Indirect – Listed equity – Passive: 91% and 5-stars (PRI median: 40-65%)
• Indirect – Listed equity – Active: 91% and 5-stars (PRI median: 40-65%)
• Indirect – Fixed income – Passive: 89% and 4-stars (PRI median: 40-65%)
• Indirect – Fixed income – Active: 89% and 4-stars (PRI median: 40-65%)
• Indirect – Private equity: 89% and 4-stars (PRI median: 40-65%)
• Confidence building measures: 85% and 4-stars (PRI median: 65-90%)

The GEPF is a founding signatory to the UNPRI and has been a member of the initiative since
its inception in 2006. PRI reporting is the largest global reporting project on responsible
investment and PRI signatories are required to report publicly on their responsible investment
activities each year. In turn, they receive several outputs, including an Assessment Report.

The scoring methodology for the 2023 Reporting Framework has an overall focus on:
• Signatories’ responsible investment implementation across their overall investment
processes;
• How specific responsible investment practices are implemented as a percentage of
assets under management covered;
• How sophisticated the responsible investment practices are for the majority of assets
under management;
• Consistency, including how policies are applied in different asset classes or subcategories, how policies are implemented by external managers or service providers;

The GEPF’s approach to responsible investment is driven by its Responsible Investment
Policy underpinned by the GEPF’ commitment and recognition that as an institutional investor,
we have a duty to act in the best long-term interests of our beneficiaries. The full report can
be found here, https://www.gepf.co.za/responsible-investment

Issued by:
Government Employees Pension Fund

Media Statement

MEDIA RELEASE

18 March 2024

The Government Employees Pension Fund (GEPF) is pleased to announce an annual pension increase of 6% to its pensioners effective 1 April 2024.

Pensioners who retired on or before 1 April 2023 are to receive an increase of 6%. Pensioners who retired after 1 April 2023 are to receive a proportionate increase based on the number of months they have been in receipt of pension by 31 March 2024.

This pension increase is based on the 5.50% inflation rate for the 12 months ending 30 November 2023 thus making the 6% increase equal to 109.1% of the Consumer Price Index (CPI) as provided in terms of GEP Law and Rules. The GEPF aims to grant increases to enable pensioners to keep up with rises in inflation but subject to this being affordable to the Fund at the given time.

The GEPF’s decision to grant inflation related increases is guided by our policies and a strong commitment to support our pensioners in managing the cost of living. We consistently strive to balance the need for reasonable pension adjustments with the long-term sustainability of the Fund.

It is noteworthy that increases beyond the stipulations of GEP Law and Rules are subject to policy considerations at the discretion of the Board, which meticulously considers the Fund’s investment performance, overall financial health, and the need to maintain the purchasing power of the pensions it pays to the extent affordable.

The GEPF remains dedicated to serving the best interests of its pensioners, ensuring they continue to enjoy a secure and dignified retirement.

For more information, please contact:

Call Centre:0800 117 669

Email: enquiries@gepf.co.za

Twitter: @GEPF_SA

Media Statement

MEDIA RELEASE

18 March 2024

The Government Employees Pension Fund (GEPF) is pleased to announce an annual pension increase of 6% to its pensioners effective 1 April 2024.

Pensioners who retired on or before 1 April 2023 are to receive an increase of 6%. Pensioners who retired after 1 April 2023 are to receive a proportionate increase based on the number of months they have been in receipt of pension by 31 March 2024.

This pension increase is based on the 5.50% inflation rate for the 12 months ending 30 November 2023 thus making the 6% increase equal to 109.1% of the Consumer Price Index (CPI) as provided in terms of GEP Law and Rules. The GEPF aims to grant increases to enable pensioners to keep up with rises in inflation but subject to this being affordable to the Fund at the given time.

The GEPF’s decision to grant inflation related increases is guided by our policies and a strong commitment to support our pensioners in managing the cost of living. We consistently strive to balance the need for reasonable pension adjustments with the long-term sustainability of the Fund.

It is noteworthy that increases beyond the stipulations of GEP Law and Rules are subject to policy considerations at the discretion of the Board, which meticulously considers the Fund’s investment performance, overall financial health, and the need to maintain the purchasing power of the pensions it pays to the extent affordable.

The GEPF remains dedicated to serving the best interests of its pensioners, ensuring they continue to enjoy a secure and dignified retirement.

For more information, please contact:

Call Centre:0800 117 669

Email: enquiries@gepf.co.za

Twitter: @GEPF_SA

Media Statement

MEDIA RELEASE

12 March 2024

The Government Employees Pension Fund (GEPF) has noted the release of data purportedly from its administrator, the Government Pensions Administration Agency (GPAA) by the ransomware group LockBit.

The GEPF is extremely concerned with this alleged security breach, as it was informed by GPAA that no data breach had occurred when it was notified of an attempt to gain access to GPAA systems by unknown individuals on the 16 February 2024. The GPAA subsequently established that this was an attempt by the ransomware group LockBit.

This morning, 12 March 2024, following the release of certain GPAA data by LockBit on 11 March 2024, the GEPF has been informed by GPAA that preliminary investigations has found that the certain GPAA systems were compromised. The GPAA is investigating the alleged data breach and whether this impacts the GEPF.

GPAA has reconfirmed that preventative action was taken when it became aware of the attempted access to its systems which included “shutting down” all systems to isolate affected areas. GPAA further confirmed that pension payments are not affected.

The GEPF is engaging with the GPAA and its oversight authority, the National Treasury to establish the veracity and impact of the reported data breach and will provide a further update in due course. Until the facts have been adequately established, the GEPF is unable to comment further on the matter.

Issued by:

Government Employees Pension Fund
For more information, please contact:

Matau Molapo
Email: matau.molapo@gepf.co.za
012 424 7315

Media Statement

The Government Employees Pension Fund (GEPF) has become aware of fraudulent letters being sent to GEPF members and pensioners, using fake GEPF letterheads by fraudsters trying to defraud members and pensioners off their pension’s monies.

The individuals are sending letters to GEPF members and pensioners to request information relating to their pending pension payments. These letters request members and pensioners to provide:

• Personal details such as identity numbers, pension numbers and bank details.
• Confirm that they agree to transact electronically with the GEPF with respect to submitting and processing of their information.
• Verifying personal details including email and cell phone details.
• Accept and respond to a One-time Pin (OTP) to legitimise the communication.

Members and pensioners are also being targeted via SMS’s encouraging them to resign and collect their pensions indicating that they would receive more funds when they resign rather than retire.

Pensioners and members are advised not to respond to such correspondence. Such correspondence should be brought to the attention of the GEPF. Pensioners and members are further advised to always contact the Fund to verify any type of communication, especially when they are expecting payment on their pensions.

The GEPF would like to make its members, pensioners, beneficiaries, and their families aware that:

• GEPF services are FREE
• No one is allowed to ask for a fee to assist GEPF current or former members, pensioners, beneficiaries, or their families with respect to GEPF services
• Members and pensioners are requested not to share their personal information such as identity document number, pension number, email addresses, cell phone numbers and bank account details.

Note to editor

GEPF is the largest Pension Fund in Africa with over 1.2 million active members and about 500 000 pensioners and beneficiaries. The Fund is responsible for more than R2.3 trillion in assets under its management.

Issued by: Government Pensions Administration Agency

For more information:

Enquires: GPAA Head of Communication: Mack Lewele 082 450 5076 or Dr Rakgwatha Mokou: 0818140030

Or contact the GEPF on:

Call Centre:0800 117 669
Email: enquiries@gepf.co.za
Twitter: @GEPF_SA

Media Statement

MEDIA RELEASE

20 November 2023, Pretoria

The Government Employees Pension Fund (GEPF) is pleased to announce its financial results for the year ended 31 March 2023.

Key Performance Indicators:

• Investment portfolio increased by R27.1 billion to R2.32 trillion from the previous financial year
• Investment market value increased by 1.2%
• Return on Investment of 3.5%
• Accumulated funds and reserves grew at an average annual rate of 6.65% for the 10-year period 2014-2023
• Net investment income of R82.2 billion (interest income of R 56.7 billion, dividend income of R56.4 billion and property income of R 2.03 billion)
• Member contributions of R83.1 billion • Benefits paid of R 137.4 billion
• Benefits paid of R 137.4 billion

In a period of uncertainty including poor economic performances, globally and in South Africa, the financial year 2022/23 was a challenging year for investors around the world. Despite these challenges, the GEPF investment portfolio recorded growth of 1.2% to a market value of R2.32 trillion, the largest in its history. This represents a growth of R27.1 billion, a 3,5% return on investment. Net investment income for the year amounted to R 82.2 billion, derived largely from dividend income of R56 billion, interest income of R 56.7 billion and net profit on sale of investments of R22.2 billion.

The positive performance can be primarily attributed to the positive performance of bonds and the depreciation of the local currency. The GEPF’s 10-year annualised return was 6.65%, illustrating financial stability with a funding level of 110.1%.

The modest growth amidst the tough economic conditions illustrates that the Fund has been very resilient, and that the Fund’s investment strategies continue to protect the Funds’ assets. The investment for the financial year is satisfactory, noting the tough and volatile economic conditions that global and local investors faced. Staying the course and not panicking when faced with sudden market volatility remains a crucial aspect of GEPF’s strategy.

Active membership remained stable over the year, while pensioner membership steadily increased. Active membership increased from 1 261 363 in 2021/22 to 1 267 307 in 2022/23 and contribution income increased by 1.39% during the reporting period. The increase is mainly because of an increase in retirements, resignations, and child pensions, while funeral and death benefits decreased.

The number of pensioners increased from 322 223 in 2021/22 to 336 629 in 2022/23. The total value of gratuities paid was R22.3 billion and annuities paid was R70.4 billion. The Fund finalised 37 440 retirement claims compared with 33 627 in 2021/22, reflecting an increase of 11% in claims. Resignation benefits paid amounted R32,9 billion (2022: R33,8 billion), R9,8 billion (2022: R14,8 billion) was paid in death benefits and funeral benefits worth R416 million were paid (2022: R550,1 million). Spouses pension benefits to the value of R12.1 billion (2022: R11.5 billion) were paid to 171 592 beneficiaries (167 679 in 2021/22), and R948.8 million (2022: R551.4 million) was paid in child pension benefits to 15 809 qualifying children (2021/22: 9 824).

These figures illustrate the GEPF’s commitment to meet its financial obligations and pay benefits to its members, pensioners, and beneficiaries. The Fund remains cash flow positive with R53 billion as of 31 March 2023. This is largely attributable to benefits paid of R137 billion, net investment income received of R107 billion, and contributions received of R83 billion.

The GEPF revised the mandate agreement with the Public Investment Corporation (PIC) for listed and unlisted investments during the 2021/22 reporting period and the revised agreements were signed effective from 01 April 2022. The revised mandate seeks to strengthen governance over the execution of the investment strategy by the PIC (on behalf of the GEPF), create a more harmonious legal framework, improve the focus and implementation of investment guidelines, and introduce accountability mechanisms in case of poor investment decisions. There is a need for greater transparency and accountability in the relationship between the GEPF and the PIC.

Furthermore, the GEPF and its administrator, the Government Pensions Administration Agency (GPAA) are exploring different models and methods to improve the payment of benefits. Over the past financial year, several initiatives were launched to realise this goal, including enhanced collaboration with employer departments, labour unions and continuing member and beneficiary outreach initiatives.

The new GEPF Board was appointed in July 2022 and is committed to growing the Fund as well as ensuring that the Fund becomes more efficient and effective in benefits administration and its investment strategies.

/Ends

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

Issued by Government Employees Pension Fund Media
Enquiries:
Matau Molapo

T: +27 (0) 12 424 7315

M: +27 (0)79 1910 757

E: Matau.molapo@gepf.co.za

Media Statement

Media Statement

Media Statement

Media Statement

Media Statement

Media Statement

Frequently Asked Questions 

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

Telephone: 012-110-4950

Issued by Government Employees Pension Fund

E: Sonke.Dandala@gepf.co.za

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.

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

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.

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)

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 18^th 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

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 NAVIGATES STRONG HEADWINDS

Monday, 16 November 2020, Pretoria

Main Points

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.

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

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.

Pretoria, Monday 26 October 2020

The Government Employees Pension Fund (GEPF) is pleased to announce the appointment of Mr. Musa Mabesa as its new Principal Executive Officer (PEO).

Mr. Mabesa is currently the Acting Principal Executive Officer at the GEPF, having previously occupied the position of Head: Corporate Services at the GEPF.

Commenting on the appointment, the GEPF Chairperson, Dr. Renosi Mokate said, “We are pleased that following an extensive process during which an impressive list of talented candidates were interviewed, the Board has selected Mr. Mabesa as Principal Executive Officer. Mr. Mabesa is a high caliber leader with the necessary skills as well as the requisite strategic and operational knowledge of the GEPF and the pension and investment industry. We are confident that together with the current Executive team he will be able to successfully implement the strategic vision of the Board.”

Mr. Mabesa says he is deeply humbled by the opportunity given to him by the GEPF Board to lead Africa’s largest pension fund. “I look forward to working with the GEPF team and all our stakeholders as we continue to ensure that the GEPF meets its obligation to protect the retirement benefits of its members and pensioners through proper administration and prudent investment during the tough economic climate that South Africa and the world is facing. It is a privilege to have the opportunity to lead one of the world’s top pension funds. There is no doubt that the challenge is huge.”

Ends

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

Pretoria, Thursday 18 June 2020 – The Government Employees Pension Fund (GEPF) and its Chairperson, Dr Renosi Mokate, notes with deep concern the false allegations by General Bantu Holomisa to President Ramaphosa stating that Dr Mokate is allegedly part of a group of individuals that have looted state resources by having easy access to PIC and DBSA funds.

Dr Mokate refutes these allegations as unsubstantiated, irresponsible, mischievous and unlawful and as such will be seeking a retraction and removal of the letter from the said website and all other platforms. These allegations are a blatant misrepresentations of facts which cast aspersions on her integrity and character.

The GEPF and Dr Mokate are currently consulting lawyers and will take whatever action is required to clear their good names and reputations. Dr Mokate is not a director of Poseidon Pty Ltd, as alleged by Mr Holomisa, and never has been.

Ends

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

Date: 28 May 2020

Media Statement

GEPF congratulates Abel Sithole on his appointment

Date: 30 March 2020

Media Statement

GEPF to take action following report of the Judicial Commission of Inquiry into Allegations of Impropriety at the Public Investment Corporation

The Board of the Government Employees Pension Fund (GEPF) welcomes the findings and recommendations in the Report of the Judicial Commission of Inquiry into Allegations of Impropriety at the Public Investment Corporation (Commission).

The Board supports the President Cyril Ramaphosa, who, on releasing the Commission’s report, indicated that in keeping with the recommendations in the report he would be forwarding it to the National Prosecuting Authority and all relevant regulatory authorities for their consideration and appropriate action.

The Board is encouraged by the media statement issued by the Public Investment Corporation (PIC) on the 20 March 2020 with respect to the actions it will be taking in response to the Commission’s report, including action initiated against named individuals and organisations. The GEPF looks forward to being regularly briefed by the PIC as it deals with the various recommendations in the report.

Although the Commission’s terms of reference did not include the GEPF, the GEPF will pay careful attention to and follow up on the Commission’s recommendations specific to it and the PIC. It will cooperate with the National Treasury which has been tasked with oversight in addressing the Commission’s findings and recommendations.

The Executive Committees of the GEPF and PIC, led by the Principal Executive Officer and Acting Chief Executive respectively, overseen by the respective Boards, are already engaged in the reviewing the agreements, policies, mandates, procedures, processes, benchmarks and fee structures that govern the relationship between them as well as addressing areas where the relationship has been eroded.

END/

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

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.

END/

For more information please contact:

Call Centre: 0800 117 669 Email:

enquiries@gepf.co.za

Twitter: @GEPF_SA

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

E: Matau.molapo@gepf.co.za

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.

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.

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.

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.

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”.

Pretoria – Government Employees Pension Fund (GEPF) has announced an annual pension increase of 5.5% to its pensioners and beneficiaries with effect from 1 April 2018. 

The GEPF has granted this increase to enable pensioners and beneficiaries to keep up with rises in inflation. 
Inflation over one year until 30 November 2017 was 4.6% thus making the increase granted higher than inflation and higher than the 75% of Consumer Price Index (CPI) provided in terms of GEP Law and Rules.

An analysis of the assets held by the Fund in relation to the valuation of its liabilities undertaken in 2016 showed that the Fund is 115.8% funded, which means that there are sufficient assets in the Fund to cover its actuarial liabilities in full. However, increases above those provided for in GEP Law and Rules is granted at the discretion of the Board taking the Fund’s investment performance into account.

The Investment Committee of the Government Employees Pension Fund (GEPF) and the Public Investment Corporation (PIC) held a meeting yesterday to discuss the recent developments regarding Steinhoff. It is important to note that notwithstanding the collapse in the Steinhoff share, the GEPF portfolio remains financially healthy, because of its diversified nature. It is also important to note that GEPF members’ benefits will not be changed by these developments, given that the GEPF is a defined benefit pension fund.

The investment loss recorded was 0.6% of the total GEPF portfolio on 6 December 2017. Despite the fall in Steinhoff share, the total GEPF equity portfolio had created a value of approximately R140 billion over the preceding 12 month period, and had performed better than the equity benchmark. Albeit a relatively small reduction in the total portfolio, and despite the signs of recovery in the share price this week, the PIC and GEPF remain deeply concerned about Steinhoff. 

Government Employees Pension Fund (GEPF) has taken note of the current concerns regarding possible lapses in governance at Steinhoff International Holdings and assures its members, pensioners and beneficiaries that their pensions are safe.

As at 31 March 2017 the GEPF through PIC owned about R28billion in Steinhoff International Holdings which is about 10% of the shares of the company but 1% of the total assets of the Fund.  The impact of significant movement in the share price on the GEPF is significant but manageable. 

As a defined benefit fund, the movement in the value of individual investments does not affect the benefits to members and pensioners. Therefore benefits to members and pensioners are safe.

The GEPF expects the highest standards of corporate governance from all investee companies. Allegations of accounting irregularities by Steinhoff International Holdings N.V., that have exposed the company to possible criminal investigations, are a serious concerns for the GEPF. 

The GEPF through the PIC is monitoring the situation while awaiting further information from investigations by domestic and international regulators and/or law enforcement agencies, to decide on an appropriate course of action.

In its endeavor to improve the benefits of member and pensioners, the Government Employees Pension Fund (GEPF) Board of Trustees is pleased to announce the improvement of the funeral and discharge benefit effective from 1 October 2017.

The improvement to the funeral benefit for a GEPF member or pensioner, whose pension either commenced on or after 1 December 2002 or prior to 1 December 2002 and is still alive as at 1 April 2012, the funeral benefit payable upon death of such a member or pensioner and/ his or her spouse and/or eligible children and/or stillborn will be as follows, current amounts are in brackets:
• In a case of a member or pensioner funeral benefit payable is R15 000 (R7 500)
• In a case of a spouse funeral benefit payable is R15 000 (R7 500)
• In a case of eligible child funeral benefit payable is R6 000 (R3 000) per child
• While in a case of a stillborn funeral benefit payable is R6 000 (R3 000) per stillborn, provided that a child was born after 26 weeks of pregnancy who shows no signs of life. If the child was deliberately terminated, a funeral benefit is not payable.
The improvement to the discharge benefit is that if a member has less than 10 years of pensionable service and is discharged for the following reasons:
• Medical reasons ( not of their own doing)
• When jobs are abolished, reduced, re –organised or restructured due to operational requirement
• To promote the efficiency of the department 
• When the President or the Premier appoints the member to another position 
• When injured on duty; or
• Incapability not as a results of own doing
The discharge benefit will be consistent with and not less than the resignation benefit effective from 1 October 2017.

Principal Executive Officer, Abel Sithole said that “these amendments will make a significant difference in our members, pensioners and beneficiaries’ lives. These changes also attest to the fact that the Fund is well managed. Sithole points out that the employer, members and pensioners do not have to make any additional contributions for these benefit improvements. He concluded by saying that the wellbeing of all GEPF members and pensioners is the reason why the Fund exists”.

Members or pensioners who claimed for these benefits before 1 October 2017 will receive payment according to the previous rules. If their claims are effective on or after 1 October 2017 they will receive their benefits payment according to the new rules. Members and pensioners must note that the claim processes and the documentation that is required to claim these benefits has not changed and remains the same.

Government Employees Pension Fund (GEPF) would like to reiterate and to assure its members, pensioners and beneficiaries that their pension savings are safe.

Last week National Treasury told the National Assembly that it is considering various options to recapitalise South African Airways (SAA) which includes the Public Investment Corporation (PIC) who is our fund manager as a possible equity partner, however Treasury speculation is perceived as confirmation that the GEPF’s assets will be used through the PIC to Fund SAA.

The GEPF would like to assure its members, pensioners and beneficiaries that the Fund has not received or been approached with such a proposal and no discussions have been held with GEPF on this matter, therefore we urge all our members and pensioners not to panic or read too much into this speculation. The GEPF through the PIC receives many requests all the time and rigorously considers the merits of all investment opportunities and invests prudently in the best interests of its members, pensioner and beneficiaries.

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.

GEPF members, pensioners and beneficiaries are reminded that the primary role of the GEPF is to protect the wealth of its members and pensioners by safeguarding their retirement benefits through proper administration and prudent investment.

MEDIA STATEMENT

Thursday, 11 May 2017

Your retirement saving is safe with GEPF, PIC

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.

Issued by Government Employees Pension Fund 
For information contact:
Matau Molapo, Communications
T: +27 (0) 12 424 7315 E: Matau.molapo@gepf.co.za 

The Government Employees Pension Fund (GEPF) is proud to announce that the Board of Trustees has granted a 6.6% pension increase to pensioners with effect from 1 April 2017. 
“The increase is equal to the year-on-year change in the consumer price index (CPI) for the year to 30 November 2016, and this attests to the Fund’s undertaking to ensure that pensioners retain their purchasing power,” says Principal Executive Officer, Abel Sithole.

“GEPF has been striving towards paying pension increases that are in line with inflation since inception, this confirms that the well-being of our pensioners remain a priority. The Fund is in a relatively good financial standing and, as per the GEPF Rules, the Fund will continue to pay pensions until a pensioner dies as well as spouse’s and an orphan’s pension where applicable, it does not matter how old they live to be”, adds Sithole.

Note to editors
The GEPF is governed by the Government Employees Pension (GEP) Law of 1996, as amended, and the GEPF Rules that accompany it. The GEP Law and the GEPF Rules, along with GEPF’s Pension Increase and Funding Level policies, give firm guidelines on how the Board of Trustees decide on the annual pension increase that is paid to pensioners.

MEDIA STATEMENT

Thursday, 23 February 2017

GEPF pension benefits are intended for members, pensioners and beneficiaries

The Government Employees Pension Fund (GEPF) adheres to strict regulations governing its financial liability to members, beneficiaries and pensioners, as well as its financial soundness. There are very strict rules governing how benefits from the GEPF must be paid and distributed. These rules are spelled out in the Government Employees Pension Law.

The pension industry as a whole is faced with unclaimed benefits and GEPF is no exception. Unclaimed benefits refer to all cases where more than 24 months have lapsed since an identified benefit became legally payable but, due to a lack of information from the beneficiary, employer or the member, the payment cannot be successfully effected. The benefits remain in the fund until claimants come forward.

Further to GEPF’s Principal Executive Officer, Abel Sithole, appearing at the Commission of Inquiry into Higher Education and Training, GEPF would like to re-iterate the funds in its care are only intended for the benefit of its members, pensioners and beneficiaries only as currently stated in the GEP Law and Rules.

In terms of the current law of the land, the GEPF Law and rules, these funds will remain in the Fund as unclaimed until the member or beneficiary has been traced and cannot be used for funding higher education or any other initiative.

Issued by Government Employees Pension Fund 
For information contact:
Thulisile Mbuli, Communications
T: +27 (0) 12 424 7329 E: Thulisile.mbuli@gepf.co.za

GEPF celebrates 20 years in existence and reflects sustainable growth

The Government Employees Pension Fund (GEPF) has released its Annual Report for the financial year 2015 – 2016, marking the 20th anniversary of its existence. The report reflects steady growth and a sustainable investment strategy coupled with continued dedication and service to its members and pensioners.

The GEPF was established in 1996 when various public sector pension funds were amalgamated into one fund. “The 20-year anniversary marks an important milestone for the GEPF as we look back on our legacy and accomplishments,” says Principal Executive Officer, Abel Sithole.

In the 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 Board to grant a pension increase of 5,3% 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 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,” adds Sithole.

In 1996, the GEPF started out with assets under management of R127 billion, which has since increased to more than R1,6 trillion. The GEPF is currently the single largest investor in Johannesburg Stock Exchange (JSE) listed companies, with significant holdings in government bonds, listed equity, money markets, as well as investments in unlisted equity and property.

Accumulated assets have grown at an average rate of 12,09% over the past 10 years. This growth has been in tandem with an improvement in the GEPF’s funding level, an increase from 72% in 1996 to 100% in 2014 (according to the actuarial valuation of 31 March 2014).

Adds Sithole, “the GEPF is proud of this achievement as 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”.

The total membership of the GEPF now stands at 1 693 078 consisting of 1 269 948 members who are still in service and 423 130 pensioners and beneficiaries. The good news is that the benefits paid decreased by R3 billion in the current year, mainly due to a decrease in resignations from the Fund.

“Looking back at the achievements of the last 20 years, the GEPF will continue to ensure the financial security and strive for superior levels of service for its pensioners and members. It will be a catalyst for change in terms of securing investment opportunities locally, regionally, and globally to meet its pension liabilities, concludes Sithole.

Issued by Government Employees Pension Fund 
For information contact:
Thulisile Mbuli, Communications
T: +27 (0) 12 424 7329 E: Thulisile.mbuli@gepf.co.za

TO: 
(i) ALL CURRENT MEMBERS;
(ii) BENEFICIARIES AND SPOUSES WHO BECAME ENTITLED TO BENEFITS SINCE 1 APRIL 2015; AND
(iii) FORMER MEMBERS WHO RESIGNED SINCE 1 APRIL 2015

NOVEMBER 2016

1. In August 2016, the Public Servants Association (“PSA”) applied to the North Gauteng High Court in Pretoria for an order directing the Government Employees Pension Fund (“GEPF”) to give written notice of the PSA’s court application to all current members, former members who resigned since 1 April 2015, beneficiaries and spouses who became entitled to benefits since 1 April 2015 (hereinafter “stakeholders”).

2. The GEPF did not oppose the order that it give written notice of the PSA’s application to the aforementioned stakeholders. This order was granted on 13 September 2016

3. The PSA also launched an application for the review and setting aside of the decision of the board of the GEPF, taken in terms of the rules of the GEPF, to amend the actuarial factors used to determine certain benefits payable by the GEPF. The basis for the PSA’s review application is that the GEPF’s board did not consult it before making its decision.

4. The GEPF is opposing the PSA’s review application and has to that end filed and served a notice of intention to oppose.

5. The purpose of this notice is simply to inform GEPF stakeholders of the existence of the PSA’s review application and also to inform any stakeholder that the PSA’s review papers will be available at the GEPF’s offices below upon request.

6. A copy of the PSA’s notice of motion setting out the relief the PSA says it will seek in the review application is attached to this notice.

Yours sincerely

Abel Sithole

Principal Executive Officer

R10.5 billion financing injected towards affordable housing for government employees and qualifying members of the publicPRETORIA -The Government Employees Pension Fund (GEPF) through its investment manager Public Investment Corporation (PIC) has announced an investment commitment of R10.5 billion into SA Home Loans (SAHL) to facilitate housing financing for qualifying government employees and members of the public.

The investment aims to provide government employees and qualifying members of the public with end-user home finance and development finance for approved affordable housing projects.

The investment comprise of the following:
• R 5 billion for public service employees;
• R 2 billion for affordable housing end user financing as defined in terms of the Financial Sector Code;
• R 2 billion to enable SAHL to extend home loans to the rest of qualifying home loan applicants; and
• R 1.5 billion will be used to fund affordable housing developers.
The investment in SAHL is part of the developmental investment mandate that the PIC is carrying out on behalf of the GEPF. Specifically, this investment addresses the social infrastructure element which has housing as one of the key components.
Dr. Claudia Manning, Member of the PIC Board said: “The PIC is intentionally implementing a developmental investment mandate, which primarily seeks to achieve two types of returns, namely: financial and social returns. Financial return means that PIC must generate profit for clients and social return means our investments should positively affect the social conditions of the stakeholders. Our view is that members of the GEPF should benefit during their active working years and during retirement – and this is a social return. Investing in affordable housing finance schemes such as this, provides these members with a real benefit.”

Lack of access to housing has been identified by the National Development Plan (NDP) as one of the challenges facing South Africa. In its diagnostic report, the NDP notes that: “the growth of property value has led to an overall average house price that has made housing unaffordable to many South Africans, and has further excluded participation in the property market by historically excluded groups. The growth has largely benefitted middle and higher income groups.”

Abel Sithole, Principal Executive Officer of the GEPF, said: “We believe there are many GEPF members who often do not qualify for bank-issued housing loans and housing subsidies offered by the government. We are, therefore, excited about this investment as
it will enable many government employees to own their own houses at a much more affordable rate. Most importantly, we believe home ownership can restore people’s dignity”

The Government Employees Housing Scheme (GEHS), an agency of the Department of Public Services and Administration, will assist government employees to access funding from SAHL.

Mashwahle Diphofa, Director General of the Department of Public Service and Administration, DPSA said: “The DPSA welcomes the participation of the GEPF through the PIC in the Government Employees Housing Scheme. The GEHS housing finance access service seeks to secure and deliver affordable and enabling housing finance for government employees. It is even more pleasing to see the PIC stepping forward as the first investor and participant in the GEHS housing finance service to bring this much needed value-added service to government employees.”Interface systems between GEHS and SAHL have already been developed and are operational. Government employees may also approach SAHL directly to apply for home loans.

Kevin Penwarden, Chief Executive Officer of SAHL, said: “We are excited about this partnership. More than anything, this investment is an expression of confidence in our service offering. We believe we have the necessary capacity and skills to deliver excellent home financing services to clients that will be coming through the GEHS platform, as we have consistently done with all our clients.”