Dear Member

Incredibly, we’re in the final month of 2023. This has been a productive and exciting year for us as EPPF as we continued our endeavours to improve our level of service to you, our valued members. It’s with a joyful heart that I thank you for your ongoing support.

EPPF remains financially secure
We have shared our Integrated Annual Report with you, and in there you’ll read about how the Fund has performed remarkably well, despite a global economic investment climate that continues to be highly volatile. If you missed our email and text to you, you could access the report by clicking here.

Broadly, EPPF remains financially sound with assets under management at R190 billion at the financial year that ended on 30 June 2023, compared to R170 billion in 2022 and R166 billion in 2021. Our funding level was 155% on 30 June 2023, compared to 139% in 2022 and 145% in 2021. Our funding level should give you peace of mind that the Fund continues to be financially secure.

We continue to take care of your now, so that you don’t have to worry about your future

Pensioners, in particular, will remember the Fund reviewed its pension increase policy to assess whether our practices met our obligations. The process ended with us amending the Fund Rules to ensure pension increases are indexed to inflation with the minimum pensioner increase not being less than 60% of the consumer price index (CPI). This year, we were pleased to announce an annual pension increase of 9%, which will be implemented in January 2024. This comprises a full CPI increase of 5.4% (based on September 2023 CPI) and an inflation catch-up increase of 3.6%. Pensioners will also be receiving a bonus payment of R13 150, comprising a standard bonus payment of R8 150 plus an additional special ad hoc discretionary bonus payment of R5 000.

Our theme of listening, learning and securing your future has informed the scope of our work

• Eskom’s unbundling is a topical matter. We meet with the employer regularly to discuss issues and solutions to support changes within the organisation. We analysed the possible impact on the Fund’s financial health. Our actuarial modelling confirms that the Fund will continue to remain financially sound after the Eskom bundling. 
• The two-pot retirement system, as proposed by government, is expected to now come into effect next year, however the final date has not been confirmed. We are preparing our systems to be ready when the draft bill becomes law to allow members to access a portion of their future retirement savings, subject to the applicable rules around the process.
• We are also on top of developments with the Conduct of Financial Institutions Bill, which is on the horizon to become law soon. We are confident that we are already applying its main consideration which is to ensure customers are treated fairly. 

Voting is underway for the Board of Trustee elections 
We’ve had the privilege of working alongside an astute Board of Trustees. The board members are heading into the last few months of their tenure with the new board set to take office on 1 June 2024. I’m grateful to our board members for their ongoing strategic guidance and support to EPPF. Voting is currently underway for the trustee elections and will wrap up on 12 February 2024. An independent provider manages the elections to maintain the sanctity of the process. For more information on the elections, please visit www.eppfelections.co.za

We’re excited about EPPF’s future

Now that we’ve closed out our strategy for Vision 2024, we are beginning to roll out what we’ve termed EPPF 2.0. The following objectives will guide all our work over the next five years: 

• Create peace of mind for our members by ensuring the sustainability of the Fund.
• Serve our members with care, empathy and excellence.
• Lead effectively.
• Impact positively on our communities and stakeholders.
• Secure our future.

As a member, you remain at the heart of all we do. If you’d like to get in touch with the team, you'll find our contact information here and please don’t forget to update your details, if they’ve changed, so we’re able to remain in touch with you. 

Let me take this opportunity to wish you and your families a blessed festive season and all the best in 2024. We remain hopeful that the future will be better and that the new year will bring positivity, happiness and prosperity to you and your families. 

Kind regards

Shafeeq Abrahams 

Chief Executive and Principal Officer