We need your beneficiary info in case you pass away while in-service
27 03 24
Dear In-Service Member
I want to give you assurance that the EPPF is focused on ensuring the Fund’s interests, and therefore yours as a valued in-service member, are protected. I say this in the context of what’s going on globally and here in South Africa. Scanning news feeds, headlines are dominated by a gloomy picture. There are natural disasters, political upheaval, as well as the conflict in Europe. At home, we’re dealing with various matters including floods, politics, potholes, loadshedding and rising inflation.
At the EPPF, we’re continuing to navigate these uncertain times with discipline to minimise the negative impact. And we’re committed to regular communication with you so you’re aware of matters that are most relevant.
Here’s a recap of key matters from the past few months.
1. Minimum Individual Reserve
In these uncertain financial times, we understand your queries when looking at your benefit statements, especially if you view the documents in the context of withdrawing. Your participation in a defined benefit fund means that the EPPF can guarantee your retirement benefit, as your Minimum Individual Reserve (MIR) is calculated in line with legal and statutory prescripts.
There have been questions around the calculation of the MIR but it’s important to understand that MIR projects what you will receive as your retirement benefit and then brings it back to its current value at the time of drawing the benefit statement. It also factors in future service. Click here for calculation examples.
I know that this is an important matter for many of our in-service members. The team and I will continue to make ourselves available through digital and in-person member engagement sessions, where we’ll aim to answer your questions and address your concerns.
2. The two-pot system
Considering concerns that we all have around our personal finances, there has been a lot of interest in the proposed two-pot system. We’re aware it’s expected to come into effect in March next year. The intention is to encourage more saving and preservation of savings for retirement. The EPPF will keep you updated on all your options, and what it means for you as soon as details are provided by Government.
3. Investment performance
The EPPF’s assets under management grew from R169.6 billion as at 30 June 2022 to
R177.7 billion as at 31 December 2022. While assets under management have grown by approximately R8 billion over the six-month period, the environment continues to be volatile. This is due to the recent significant rise in inflation and increasing interest rates locally and globally, which affect the values of asset classes. As a result, for the period ending 31 December 2022, the underlying investment asset classes produced returns lower than inflation.
It’s important to know that the EPPF’s funding ratio remains healthy which means our assets significantly exceed our liabilities in order to cover all future pension requirements.
Below is the investment performance against applicable targets as at 31 December 2022. The Fund delivered returns lower than the inflation target.
Our Integrated Annual Report, published last November, reflects on the progress made in the 2021/22 financial year.
4. Eskom’s unbundling
I also assure you that we’re working closely with Eskom as the National Transmission Company South Africa SOC Ltd comes on board, and how best to support the migration. The bottom line for you as an in-service member is that your retirement funds are safe and that won’t change.
5. Rule Amendment 2
Rule Amendment 2 came into effect on 19 January 2023. As an in-service member, Rule Amendment 2 clarifies pension fund contributions from the 13th cheque for applicable members.
In-service members in the bargaining unit
There’s no change to the current applicable arrangements for Bargaining Unit employees.
In-service members who are in management
Rule Amendment 2 clarifies the matter of the contributions from the 13th cheques of
in-service members who are in management as indicated by the employer to the Fund. The usual process that allows employees who are in management to contribute to the pension fund from their Fixed Benefit Package in October each year remains unchanged.
Click here to read the EPPF’s Rules and Rule Amendments
6. Improving communication and engagement with members
The EPPF is mindful that you have busy workdays so we’re working to ensure we schedule engagement sessions that are convenient for you. In the interim, we are continuously improving our service offerings to you at our various touchpoints from our tollfree contact centre, to our digital channels, at head office and in our regional offices.
We encourage you to use our official channels to make contact so we can respond to you within a reasonable timeframe and so that you get correct information.
7. A tribute to Eskom Guardians
Let me take a moment to celebrate three important groups.
Firstly, congratulations to Eskom Holdings SOC Ltd on its centenary birthday. This month marks the 100th year of Eskom’s existence. This is indeed a significant milestone within the history of the country as well as corporate South Africa. We wish Eskom prosperity.
Secondly, I thank the thousands of Eskom pensioners who have inspired us over their working years with their passion, determination, loyalty and commitment to Eskom and South Africa at large.
Thirdly, I commend the thousands of honest and hardworking Eskom Guardians who show up every day to address the challenges that face the company and country. Your courage and commitment to South Africa are commendable. We salute you and stand in solidarity with you as you work tirelessly to deliver on your mandate with resolute dedication. We wish you all the strength and success.
Kind Regards
Shafeeq Abrahams
Chief Executive and Principal Officer
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