The Government employs, more than a million civil servants, who diligently contribute towards the Government Employees Pension Fund (GEPF) and the fund to date must have accumulated billion of rands in reserves.
Yet as a government institution none of its members are even aware in the slightest of how their hard earned money is being invested and or used in order to accrue interest and or ultimately add to their benefit on retirement. The fund has become like a secret association, and with recent newspapers report, leaking on how the fund has invested into non performing ventures and mining activities makes one wonder what its financial standings is at the moment, and if all those loyal civil servants can still count on their benefits that they hoped for when retiring.
Mines are closing down as none performing, as their operational costs increases with higher wage demands and that as a consequence places the investment by the GEPF under a magnifying glass. It stands to lose millions in these investments that it made, and what about the property investments that it made, shopping centres erected and financed by investments from the GEPF that are standing vacant and that has no return on investment for its financiers?
The questions remain vast? Does the fund have the resources to eventually contribute to the demand that it will be subject to once they have to start paying out benefits?
One need to ask the question, and I don’t think it is unfounded or unwarranted that at present, with this non disclosure of its financial status, it has become a ‘pyramid scheme’ where people that are retiring on pension are being paid with contributions that are being received from employees that are still currently loyally contributing. No other conclusion can be made, as any person with a sound mind, reading the papers and applying basic mathematics and economics, can calculate that the fund is depleted if not technically insolvent where it’s possible future claims exceeds its liabilities that it will have to honour by billions!