April 2019

11Apr

A new option for retirement … the hybrid annuity

From March this year all retirement funds must offer their members annuity (pension) options that conform to regulations that came into effect in September 2017. The aim of the regulations is to improve the likelihood that you, the fund member, will choose a pension that will last for the rest of your life. These so-called default regulations affect three important areas of retirement saving: how your contributions are invested while you are accumulating savings (Regulation 37 of the Pension...

April 11, 2019
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04Apr

South Africa. Bad governance can undo govt guarantees of SOE investments – pension fund chair

Government guarantees of investments in state-owned enterprises can be made meaningless by bad governance, Dr Renosi Mokate, chair of the board of trustees of the Government Employees Pension Fund said on Tuesday. Mokate was taking parting in a panel discussion on financing sustainable infrastructure at the 4th annual meeting of the New Development Bank, commonly known at the Brics Bank, in Cape Town. The GEPF manages pensions and other benefits for state employees in South Africa. The Public Investment...

April 4, 2019
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March 2019

20Mar

A first step towards justice for South African pensioners

Between 2007 and 2013, more than 6,000 pension funds in South Africa were cancelled in a process littered with errors and oversights. Today, Open Secrets has written to five of the country’s largest pension fund administrators to demand swift action to reinstate pension funds that have been incorrectly cancelled. This is the first of many necessary steps of ensuring accountability for a shameful decade in pension fund administration that has harmed many vulnerable pensioners. The regulatory body that is...

March 20, 2019
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12Mar

South Africa. Government ministers lobby to stop PIC amendment bill

The bill is intended to strengthen and bring positive changes to the weakened Public Investment Corporation. There are behind-the-scenes efforts by some government ministers to put a spanner in the works and oppose the passing of the proposed Public Investment Corporation (PIC) Amendment Bill, according to an EWN report. The amendment bill is intended to strengthen and bring positive changes to the weakened PIC, which is responsible for managing assets on behalf of, among other institutions, the Government Employees...

March 12, 2019
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08Mar

SA’s pension pot at risk as government seeks funding

The pension pot in South Africa, one of the largest in the world, could be under threat as government, whose debt is growing every year, looks for new funding sources. This according to the Institute of Race Relations (IRR), which warned of a threat by government to stipulate what the pension funds of about 16 million South Africans should be invested in. In its election manifesto, the ANC said it would investigate the introduction of prescribed assets on financial...

March 8, 2019
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February 2019

21Feb

South Africa. Grant for pensioners to increase to at least R1,780 monthly

Pensioners can again look forward to an inflation-linked increase in their social grants this year. The government spending on social grants will increase to R567 billion. The number of beneficiaries who receive social assistance from the state is expected to increase from 17.9 million to 18.6 million over the next three years. Old-age pensions will increase by R85 this year to R1,780 monthly. Pensioners over the age of 75 will receive a monthly pension of R1,800. The foster care...

February 21, 2019
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07Feb

Institute of Race Relations launches campaign to warn South Africans about the risk to their pensions

A campaign to warn South Africans about the risks to their pensions, and to take a stand in urging the government to concentrate on growing the economy instead has been launched by the Institute of Race Relations (IRR). This follows the announcement that the governing African National Congress (ANC) is considering introducing a regime of prescribed assets. The IRR has warned that expropriation without compensation (EWC) will be about more than just land, and extend to other forms of...

February 7, 2019
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05Feb

South Africa. Board walkout at PIC may risk investments

A deepening crisis at South Africa’s biggest money manager the Public Investment Corporation is threatening to cast a pall over the economy and throw into doubt potential deals, including the bailout of one of the nation’s largest clothing retailers.Nine PIC directors quit on Friday, saying the institution overseeing the pension funds of most South African civil servants has entered a “state of paralysis” following misconduct claims against some board members. Those included questionable investments in the bonds of cash-strapped state...

February 5, 2019
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January 2019

25Jan

South Africa. ‘Despicable’ – ANC slams DA’s latest ad claiming pensions and homes will be taken

The ANC condemned the DA for its latest pre-election campaign - an advertisement that claims the ruling party will take away citizens' houses and pension fund money. "Spreading disinformation as an election tactic is not only despicable, but it also undermines the intelligence of the voters. We reject these insinuations with the contempt they deserve," ANC spokesperson Zizi Kodwa said on Wednesday. He labelled the campaign shallow and said it rode on the back of disinformation. The advertisement...

January 25, 2019
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23Jan

South African state pension fund suspends officials over technology deal

South Africa’s state pension fund said on Tuesday that it had suspended two officials for flouting governance rules over an investment in local technology firm Ayo Technology Solutions. The PIC is the biggest investor in Africa’s most industrialised economy, holding a large volume of bonds issued by state-owned firms and equity stakes in some blue-chip companies. The suspensions come as a state inquiry into governance at the Public Investment Corporation (PIC), which manages 2 trillion rand ($144 billion) in...

January 23, 2019
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