PRETORIA, South Africa’s National Treasury has again re-assured the country’s public sector employees that their savings in the Government Employees’ Pension Fund (GEPF) and Public Investment Corporation (PIC) are safe and their benefits and pensions are not at risk.
The GEPF said the funds under its management are invested in government bonds which are publicly traded, which allows interested investors to invest in them. “It is worth noting that a significant portion of State-owned enterprises (SOEs) bond-holdings are government guaranteed, the GEPF said.
The GEPF also stressed that investing in SOEs is part of its mandate to the PIC. The mandates are based on a detailed asset and liability modelling exercise, the GEPF said.
According to National Treasury, the aim of the PIC is to safeguard the pensions of public servants and ensure reasonable returns are generated for contributors. “The Government does not interfere in the PIC’s investment processes and therefore does not influence or attempt to influence the PIC to fund SOEs.” the Treasury said.
The PIC is a regulated institution that has to comply with regulations at all times.”
Source: NAM NEWS NETWORK