GEPF, PIC Rules and How this affects your Pension and its Payout.
The GEPF, PIC have been a lot in the news lately and most of that NEWS has not been good news.
Most of the publicity has been around not so much its administration but rather its RULES and its INVESTMENTS
Off course the GEPF, PIC stance is that the investments do not affect the GEPF Members Pension for it is a Defined Benefits Pension.
But I beg to differ as we say the following:
1) If GEPF, PIC is investing at a return that is above inflation it creates a Healthy Fund that will be able to sustain its members
2) On the other hand if not investing well and the return is less than inflation then the fund will be unhealthy and will not sustain its Members.
While we are talking investments, the GEPF through PIC have generally been running at about 13% return on an average over the last 10 years. Now that is nothing to be snuffled at if you are a Fund Manager but rather you will be proud.
Unfortunately over the last 2 years PIC has only achieved 4%pa.
Now you cannot pay out 7% and make only 4%.
Not only this, but the future looks bleak as the PIC has been questioned on undisclosed funds as seen in this report.
With the Eskom Investment which we have yet heard of which they said would be a success.
Off course the interview with the GEPF monitor Group did sounded further bells and they are not good ones.
in this article concerning PIC shares in Steinhoff, they are adamant how it should have been at Steinhoff but maybe the idea should rather be preventative maintenance.
Lastly a report on just HOW transparent is the GEPF, PIC.
Now None of the above holds good water and I think the GEPF has some explaining to do.
Well when it comes Rules of the GEPF the Members are definitely not clear at all and this causes the members to possibly make wrong decisions
Please remember this is a Defined Benefit Pension Fund and so works on a different Dynamique.
Are you aware of the possible penalties and when do they begin.
Is it better to stay in the Pension Fund or resign and move out.
I get asked this on a daily basis while lecturing on this Pension Fund.
Contact me for a Personal Appointment where I will divulge your full Status and Benefits as well as what to expect in the next few years to come
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