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PERSONAL FINANCE

The Government Emplyees Pension Fund

blueprint continues to work

Since its establishment in 1996, the Government Employees The GEPF board and management have employed a number
Pension Fund (GEPF) has grown its worth from R127 billion to of mechanisms to ensure that its asset managers, such as the
more than R1,8 trillion, becoming Africa’s largest pension fund PIC, act within the mandates provided. How the GEPF invests
as well as being among the top 10 pension funds in the world. its funds is a carefully thought-out strategy aimed at achieving
It is also the largest single investor on the Johannesburg long-term growth for the fund.
Stock Exchange (JSE), playing a critical role in South Africa’s
development. The strategy focuses on ensuring that we allocate and
manage the fund’s assets so that it meets or outperforms the
The single most important characteristic for anyone wanting fund’s current and future liabilities, which has been done very
to understand the GEPF, is that it is a defined benefit fund, successfully in its 22 years of existence. The GEPF has also
meaning that the GEPF promises benefits in terms of the rules adopted a responsible investment policy, which integrates
set out in the Government Employees Pension Law and these environmental, social and governance issues in its investment
benefits are not calculated on the basis of how the fund is decisions.
invested.
The GEPF also has a developmental investment policy focusing
The pensions and the benefits due to members and on targeted investments that contribute to positive economic,
pensioners are guaranteed in terms of the law. The only issues social and environmental outcomes for South Africa, while
that matter in how members are paid, is the years of service earning good returns for members and pensioners.
that the members have in the GEPF and their final salary at the
time they exit the fund, as these determine the amount of the It is important to emphasise that the board and management
pensions or pay-outs if one resigns. of the GEPF take their fiduciary responsibilities seriously
and act in the best interests of its members, pensioners and
As indicated, investments actually do not affect the benefits beneficiaries at all times. The GEPF is guided and operates
because benefits are determined by the rules and they will within the Government Employee Pension Law and rules,
always be paid. This is guaranteed by government as the which define precisely how the fund should be governed and
employer. Incidentally, the fund is currently 115% funded, how it should administer pensions and other related benefits
meaning the GEPF is able to meet all its liabilities. to members, pensioners and beneficiaries. 

The assumption that the GEPF is easily influenced on For more information contact:
how funds are invested is the furthest from the truth. The GEPF at enquiries@gepf.co.za or visit our
board and management of the GEPF take their fiduciary website at www.gepf.co.za or on twitter at @GEPF_SA
responsibilities seriously and act in the best interests of its
members, pensioners and beneficiaries at all times. This can
be illustrated by the fund’s growth, which is nearing R2 trillion.

32 SERVICE DELIVERY REVIEW | Volume 12 No. 1 of 2018