NEWS ANALYSIS: Lessening the load of government debt
The government is sinking in debt. But SA does have savings. Could the R6-trillion managed by pension funds and life offices help solve this problem?
Nearly a third of this belongs to the Government Employees Pension Fund (GEPF), a defined benefit fund that is guaranteed by the government. The GEPF is more than 100% funded, even though it is only required by law to be funded to 90%. Annually it awards inflation-sized increases to pensioners, though this also is not required.