It has now reached a point when the income on investments is not sufficient to provide for pensions being paid, as well as for the total costs of the fund
The fund has 1.281 million active members and 441 633 pensioners and is a defined benefit pension fund, which means the government, and ultimately taxpayers, will cover any shortfall in the benefits of the fund’s members or pensioners or their beneficiaries.Ivan Fredericks, the general manager of the Public Servants’ Association of SA , said this week that the pension fund’s actuarial valuation showed that it was “on a steep downward spiral if this trend continues unchecked”.
However, for now taxpayers were safe because, in the February budget speech, the fund was listed by Treasury as a potential contingent liability; but from the 2008/09 to the 2021/22 fiscal years no value was assigned to this contingent liability. A large amount of money, such as the fund had, could be misleading because it was not an indication of the ability to give increases linked to inflation every year, Van Dyk said. He said there was still time to intervene.
In the four-year period between 2015 and last year only R150 billion of the fund’s contributions of R257 billion went to new investments.
They never funded Black Owned companies, they go fly a kite
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