State pension fund squeeze
Wobbles in the state of the GEPF have more than civil-service pensioners worried
Concerns about the funding and governance of state pensions continue to plague the Government Employees Pension Fund (GEPF), leaving members and pensioners anxious and throwing a spotlight on implications for the economy. This week, Adamus Stemmet, spokesperson for the Association of Monitoring and Advocacy of Government Pensions (AmaGP), said conflicting statements from the GEPF about the certainty of long-term funding were "creating a lot of anxiety". In April, the GEPF assured pensioners of the fund's stability - but this month it acknowledged the possibility that the pensioners may lose their increases. The long-term funding shortfall is an estimated R583bn, meaning the fund level would be at 75.5%. Trustees aim to maintain the long-term funding level at or above 100%, which is the current status of the fund. The GEPF's definition of "long term" is based on the life expectancy of its youngest member, 75 years. The AmaGP, which was established in 2016 and has more than 7,000 memb...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.