The four key areas identified include transformation at industry-level, economic transformation and environmental sustainability.
Transformation to meet broadbased black economic empowerment goals at South Africa’s biggest pension fund is about to begin. The Government Employees Pension Fund is a defined pension fund governed by the Government Employees Pension Law of 1996. As a defined benefit fund, members are guaranteed their pension benefits. Assets under management as at 31 March 2022, the most recent audited annual report, are R2.3 trillion. ALSO READ: Govt Employee Pension Fund will grant a 5.
“Once they are in receipt of a pension, pensioners, or survivors enjoying dependants’ pensions after the death of a member, are exposed to investment risks to the extent that such risks may adversely impact the fund’s ability to afford pension increases above the minimum set out in the pension increase policy.
“The GEPF does not allow the chair of the GEPF board of trustees, or the board itself, or GEPF senior management to pursue political goals with pension money. This renders the GEPF transformation policy unlawful.”The AMAGP said: “The approval of the policy in violation of the GEPL also raises the question of whether the members of the GEPF board of trustees indeed passes the ‘fit and proper’ test prescribed in legislation for all trustees of pension funds.