Pensioners are not funding SAA

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Published May 25, 2017

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Johannesburg – The Government Employees Pension Fund

(GEPF) would like to reiterate and to assure its members, pensioners and

beneficiaries that their pension savings are safe.

In a statement issued on Thursday, it notes that last

week National Treasury told the National Assembly that it is considering

various options to recapitalise South African Airways (SAA) which includes the

Public Investment Corporation (PIC) as a possible equity partner.

The PIC is the GEPF’s fund manager.

However, it says, Treasury speculation is perceived as

confirmation that the GEPF’s assets will be used through the PIC to fund SAA.

“The GEPF would like to assure its members, pensioners

and beneficiaries that the fund has not received or been approached with such a

proposal and no discussions have been held with GEPF on this matter.”

As a result, it says, it urges “all our members and

pensioners not to panic or read too much into this speculation”.

Read also:  #Budget2017: SAA to receive further bailout

The GEPF, through the PIC, receives many requests all the

time and rigorously considers the merits of all investment opportunities and

invests prudently in the best interests of its members, pensioner and

beneficiaries, it explains.

“The GEPF adheres to strict regulations governing its

financial liability to members, beneficiaries and pensioners, as well as its

financial soundness. Moreover, the GEPF has confidence in the PIC’s ability to

prudently invest funds on its behalf in terms of the agreed investment mandate. The

GEPF constantly monitors and evaluates the PIC’s performance in accordance with

its investment policy and mandates.”

It adds: “GEPF members, pensioners and beneficiaries are

reminded that the primary role of the GEPF is to protect the wealth of its

members and pensioners by safeguarding their retirement benefits through proper

administration and prudent investment.”

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