Despite crash in Steinhoff stock, public servants’ pensions ‘are safe’
Public servants need not fear that their pensions will be negatively affected by the spectacular crash of Steinhoff this week‚ according to the Government Employees Pension Fund (GEPF).In a statement released on Friday the GEPF said that as at March 31 2017, the GEPF — through the Public Investment Corporation (PIC) — owned about R28bn in Steinhoff‚ about 10% of the shares of the company but 1% of the total assets of the fund.Following a massive decline in Steinhoff’s share price‚ the GEPF’s investment was worth a little over R2bn by mid-morning on Friday.The fund is valued at R1.8-trillion.Steinhoff lost R194bn of its total market value by the close of trading on Thursday."The impact of … 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‚" the statement read."Therefore, benefits to members and pensioners are safe."Allegations of ...
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