Stephen Cranston Associate editor

There is a least one pocket of excellence left in the Eskom group and that is the Eskom Pension & Provident Fund (EPPF). I am sure its CEO, Sbu Luthuli, would have made a better job of running the utility than the recent incumbents. Perhaps I am naive but I have not smelled the odour of corruption on the EPPF management. In their recent presentation there was a business-like approach which most private sector pension funds should adopt. In fact, it is governed — like private funds — by the Pension Funds Act. This does not govern the Government Employees Pension Fund (GEPF) or the Transnet funds, which have their own legislation. The EPPF is well-funded, with a 118% ratio of assets to liabilities. This might look excessive but the EPPF is a defined benefit fund — just about the last one standing. In defined contribution, which now dominates, you get no more and no less than the assets in your pension funds. But defined benefit works on a formula of guaranteeing a pension based on fin...

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