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nEws in BriEf

Your retirement saving is safe with GEPF, PIC

The Government Employees Pension
Fund (GEPF) and Public Investment
Corporation (PIC) reassures 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 as at November 2015. This is higher its pensioners against inflation. It is
pensioners should therefore not focus than the 75% increase recommended currently one of a very few large defined
inordinately on the ordinary and normal by the rules of the Fund. benefit pension funds in the world that is
fluctuations of the Fund’s individual 100% funded after the 2008-09 financial
investments, which is of greater interest The GEPF’s investment strategy also crisis. This reflects the Fund’s robust
to the GEPF Board of Trustees and the uses a liability-driven approach that investment strategy and its ability to
Minister of Finance. takes into consideration expected future adapt to dynamic and turbulent market
benefit payments, the actuarial position, forces.
In the financial year 2015-16, the Fund’s other long-term objectives, and the risk
assets grew to over R1,6 trillion. The to the overall solvency of the Fund, which The GEPF affirms that the well-being of
GEPF achieved an overall investment reflects steady growth and a sustainable all of its members and pensioners is its
performance return of 4% during this long-term investment. reason for existence. n
time. This enabled the Fund to grant
a pension increase of 5,3% to its The GEPF has a solid track record of www.gepf.gov.za
pensioners, which was above 100% of safeguarding the value of active mem-
the Consumer Price Index (CPI) of 4,8% bers’ retirement savings and protecting

Volume 11 No. 3 of 2018 | SERVICE DELIVERY REVIEW 7