Ricochet News

State employees’ pension funds are safe

Jul 20, 2017
State employees’ pension funds are safe

The Government Employees’ Pension Fund (GEPF) and Public Investment Corporation (PIC) has once again reassured its members and pensioners that their benefits and pensions are not at risk. 

“GEPF is invested in government bonds that are publicly traded, which allows interested investors to invest in them. It is worth noting that a significant portion of State-owned enterprises (SOEs) bond-holdings are government guaranteed,” GEPF said.

GEPF stressed that investing in SOEs is part of its mandate to the PIC.

“The mandates are based on a detailed asset and liability modelling exercise,” GEPF said.

According to National Treasury, the aim of the PIC is to safeguard the pensions of public servants and ensure reasonable returns are generated for contributors.

“Government does not interfere in the PIC’s investment processes and therefore does not influence or attempt to influence the PIC to fund SOEs. 

“The PIC is a regulated institution that has to comply with regulations at all times,” said Treasury.

– SAnews.gov.za