The Government Employees Pension Fund (GEPF) achieved a 9.6% year on year growth, closing with the highest market value in its history of R2.3 trillion, in the 2021\/22 financial year, an increase of R201 billion from previous financial year.<\/p>\n
Announcing their achievement recently, the GEPF said: \u201cdespite the Fund operating in tough economic conditions, the GEPF achieved a 9.6% year on year growth, closing with the highest market value in its history of R2.3 trillion in the 2021\/22 financial year, an increase of R 201 billion from the previous financial year.<\/p>\n
\u201cThis increase resulted in a return on investment of 11.1% realising a net investment income of R255.7 billion. During the 10-year period, 2013-2022, the GEPF\u2019s accumulated funds and reserves grew at an average annual rate of 8.60%.\u201d<\/p>\n
The continued growth of the Fund irrespective of the prevailing difficult economic conditions clearly indicates that the Fund\u2019s long-term investment strategies continue to assist in growing the Fund.<\/p>\n
The improved return was largely because of positive domestic market conditions, particularly equities growth, rising commodity prices and the performance of our Bond portfolio which improved by 6% from the previous financial year.<\/p>\n
There was a recovery in the Fund\u2019s unlisted and property portfolios. The GEPF continues to strengthen its oversight and strategies with respect to these portfolios to further improve their performance.<\/p>\n
It is, however, important to note that the long-term impact of the COVID-19 pandemic will continue to impede these portfolios.
\nAccording to the GEPF\u2019s 2021 statutory actuarial valuation, the Fund is financially sound, reflecting a funding level of 110.1% to meet its current benefit obligations to members.<\/p>\n
It is an improvement when compared to the funding level of 108.3% reflected in the previous valuation which was done in 2018.<\/p>\n
Notwithstanding the tough operating environment, total benefits paid by the Fund in the financial year under review amounted to R136 billion.<\/p>\n
The pension administrator, the GPAA, paid 499 726 pensions compared to 479 483 in the 2020\/2021 financial year, reflecting an increase of 4%.<\/p>\n
It processed and finalised 33 627 retirement claims compared with 27 960 in 2020\/2021, reflecting an increase of 20.3%.<\/p>\n
The GEPF is pleased to announce its financial results for the year ended 31 March 2022.<\/p>\n
Key Performance Indicators
\n\u2022 Market value of R2.3 trillion increasing by R 201 billion from the previous financial year;
\n\u2022 Investment market value increased by 9.6%;
\n\u2022 Return on Investment of 11.1% for the financial year;
\n\u2022 Accumulated funds and reserves grew at an average annual rate of 8.6% for the 10-year period 2013-2022;
\n\u2022 Net investment income of R255.7 billion;
\n\u2022 Member contributions of R82 billion; and
\n\u2022 Benefits paid of R136 billion.<\/p>\n
Gratuities paid amounted to R21.4 billion compared to R19.7 billion in financial year 2020\/21. Monthly annuities paid amounted to R62.3 billion compared to R56.3 billion in the previous period.<\/p>\n
Active members decreased from 1 265 406 in 2020\/2021 to 1 261 363, a minimal decrease of 0.3%. In an effort to further strengthen and enhance our investment processes, including oversight of the Public Investment Corporation (PIC).<\/p>\n
GEPF implemented the following including recommendations made by the Judicial Commission of inquiry into allegations of impropriety at the PIC (the Mpati Commission):<\/p>\n
\u2022 The Fund\u2019s investment policy was reviewed and strengthened;
\n\u2022 Implementation of a revised strategic asset allocation following the evaluation of the Fund\u2019s investment strategy and an asset liability modelling exercise;
\n\u2022 Agreement has been reached with the PIC on benchmark returns which has resulted in a revised mandate being signed for the listed and unlisted portfolios;
\n\u2022 In enhancing monitoring and evaluation of investments, the Board approved a revised internal investment monitoring structure to strengthen oversight and monitoring capacity.<\/p>\n
The goal to improve benefits administration continues to be a key strategic objective for the GEPF.<\/p>\n
A key concern in this regard is the late payment of benefits by the Government Pensions Administration Agency (GPAA).<\/p>\n
Consequentially, the Fund reviewed and strengthened its service level agreement (SLA) with the GPAA as well as started a process of reviewing its operating model with GPAA, aimed at improving service delivery to our members, pensioners and beneficiaries.<\/p>\n
The newly appointed GEPF Board 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.<\/p>\n
The outlook for the GEPF remains positive regarding South Africa\u2019s prospects and we believe that teamwork and determination will take us to greater heights than before.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Government Employees Pension Fund (GEPF) achieved a 9.6% year on year growth, closing with the highest market value in its history of R2.3 trillion, in the 2021\/22 financial year, an increase of R201 billion from previous financial year. Announcing their achievement recently, the GEPF said: \u201cdespite the Fund operating in tough economic conditions, the […]<\/p>\n","protected":false},"author":2,"featured_media":2583,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[39],"tags":[],"class_list":["post-2581","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news"],"_links":{"self":[{"href":"https:\/\/www.dpsa.gov.za\/thepublicservant\/wp-json\/wp\/v2\/posts\/2581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dpsa.gov.za\/thepublicservant\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dpsa.gov.za\/thepublicservant\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dpsa.gov.za\/thepublicservant\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dpsa.gov.za\/thepublicservant\/wp-json\/wp\/v2\/comments?post=2581"}],"version-history":[{"count":1,"href":"https:\/\/www.dpsa.gov.za\/thepublicservant\/wp-json\/wp\/v2\/posts\/2581\/revisions"}],"predecessor-version":[{"id":2584,"href":"https:\/\/www.dpsa.gov.za\/thepublicservant\/wp-json\/wp\/v2\/posts\/2581\/revisions\/2584"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dpsa.gov.za\/thepublicservant\/wp-json\/wp\/v2\/media\/2583"}],"wp:attachment":[{"href":"https:\/\/www.dpsa.gov.za\/thepublicservant\/wp-json\/wp\/v2\/media?parent=2581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dpsa.gov.za\/thepublicservant\/wp-json\/wp\/v2\/categories?post=2581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dpsa.gov.za\/thepublicservant\/wp-json\/wp\/v2\/tags?post=2581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}