News

​EPPF Launches it’s Revised B-BBEE Policy

01 July, 2017

The Eskom Pension and Provident Fund (EPPF) which celebrates 80 years of existence this year committed itself to drive transformation in the Financial Services Sector this morning when it hosted a breakfast session attended by industry expects, asset managers, stock brokers, private equity fund managers and regulators.

 

 EPPF is one of the largest remaining Defined Benefit Funds in South Africa and manages in excess of R70 billion in assets on behalf of its 81 000 members.

“Given the significant assets we manage, we believe we are well positioned to take a lead in driving the transformation agenda in this industry. The survey that we conducted late in 2010 indicated that transformation was happening at a very slow pace which informed our approach in our revised policy. The revised policy now has clear time lines and penalties for non compliance” said Sbu Luthuli, the Chief Executive of the EPPF. In 2010 the EPPF commissioned a survey to better assess the status of transformation in the asset management industry. The survey focused on four elements of the BBBEE scorecard which collectively weigh 60% in the overall scorecard, namely: Ownership, Management Control, Employment Equity and Skills Development.

The findings of the study can be summarised as follows:

  • Asset Managers transformation initiative have been rather responsive to legislation and regulations than proactive.
  • Where Trustees and asset owners drive BBBEE initiatives, asset managers tend to comply.
  • Public Sector and State Owned Entities are the most active in pushing the industry to transform.
  • Within asset management companies, investment teams consisting primarily of economists, analysts, portfolio managers and investment strategists were largely still untransformed. Administration and client servicing teams had the highest representation of Black individuals.
  • The low number of Black individuals in key investment positions was largely attributable to a skills development gap, as insufficient numbers of Black individuals hold the relevant qualifications in economics, accounting and finance.
  • The survey found that 20% of Black individuals out of the asset management companies surveyed had a Chartered Financial Analyst (CFA) qualification and 37% had a Bachelor of Commerce degree.
  • The study further found that a number of asset management companies had initiated programs to bridge the skills development gap but this pace was low.

It is against this backdrop that the Board of Trustees of the EPPF has recently approved a revised Broad-Based Black Economic Empowerment (BBBEE) Policy for the Fund’s investments. The Fund’s BBBEE policy aims to make a contribution towards accelerating the participation of the previously disadvantaged in the Financial Services Sector.

The policy requires all asset managers to achieve a level 3 BBBEE rating. Non complying managers will be given a 12 month window period to comply. It further encourages managers to strive for a 50% Black representation at both board and executive director level as well as a 40% Black representation at top management.

The policy requires asset managers to implement effective Skills Development initiatives. The asset managers are also required to achieve a threshold of 40% in each of the employment equity targets (senior, middle and junior management as well as people living with disabilities) in year 1 and 66% in years 2 and 3. Non compliance with the policy will result in a 10% reduction of EPPF’s assets allocated to the non compliant asset manager in year 1 and if non compliance continues, the entire mandate will be reviewed.

As an active investor, EPPF is also proud to be one of the first few signatories of the United Nations Principles for Responsible Investing (UNPRI), putting the Fund at the fore of championing the notion that environmental, social and corporate governance (ESG) issues can affect the performance of investment portfolios and therefore must be given appropriate consideration by investors if they are to fulfil their fiduciary duty. The Fund is also a signatory of the Code of Responsible Investing in South Africa (CRISA), helping the EPPF to effectively execute its investment analysis and activities, as well as to exercise sound governance.

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​EPPF Launches it's Revised B-BBEE Policy
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Pensioners and beneficiaries FAQs
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uygyugugu kjhiu iji
Can I choose an investment portfolio that my funds can be invested in?
Does the EPPF have both Pension and Provident Fund?
Can you pay my withdrawal benefit to the Eskom Finance Company?
Governance
​EPPF Launches it's Revised B-BBEE Policy
EPPF's Affordable Housing Investment to Positively Impact SA's Development
Update: Unauthorised Debit Orders
Update: Former Eskom GCEO pension pay-out
Bonus and Pension Increase Announcement
Advice: Take a stand against fraud and protect yourself
Impact of Steinhoff International on the EPPF
High court ruling on former Eskom GCEO pension pay-out case
Eskom Pension and Provident Fund (EPPF) appoints first-ever female Chief Executive and Principal Officer
The EPPF Transformation Breakfast
Bonus and Pension Increase Announcement 2018
Board announcement to stakeholders
THE POSITION OF THE FUND ON PRESCRIBED ASSETS
Supreme Court of Appeal ruling on former Eskom GCEO pension pay-out case
Trustee Elections 2019/20
EPPF calls for asset owners to promote transformation at the third EPPF Transformation Breakfast
Repayment of Benefits by Former Eskom GCEO
Appointment of Ms Linda Mateza as EPPF Chief Executive and Principal Officer
RESPONSIBLE INVESTING BY PENSION FUNDS: THE ABC OF ESG
EPPF hosts PEWIN breakfast roundtable
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Employee Profile: meet Tetelo Mabona
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Former Eskom GCEO pension pay-out update
Trustee Elections : Voting phase
EPPF Member/Pensioner Update - Message from the Chairman
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EPPF COVID-19 (CORONAVIRUS) MEMBER UPDATE
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UPDATE: EPPF OPERATIONS DURING THE 21 DAY NATIONAL LOCKDOWN AS A RESULT OF COVID-19
Provisional Trustee Election Results
IMPACT OF CORONAVIRUS (COVID-19) AND THE RATINGS DOWNGRADE ON THE EPPF INVESTMENT PORTFOLIO
Trustee Elections 2019/20 results announcement
EPPF and Global ASP matter
EPPF changes to new pension administration system
Announcement - Eskom Employee Benefits department
Announcement: COVID-19 relief special bonus for EPPF pensioners
NEW EPPF BOARD APPOINTMENTS
UPDATE – BUSINESS MAVERICK REPORTING ON EPPF SANCTIONED BY PRESS COUNCIL
Member Update: EPPF's digital transformation journey
MEMBER UPDATE: NOVEMBER 2020
2021 Pensioner increase and bonus
2020 Integrated Report
EPPF Chief Executive and Principal Officer to step down
Member Update: Business Maverick reporting
EPPF appoints new Chief Executive and Principal Officer
Member Regulatory Update
MEMBER UPDATE – APRIL 2021
EPPF INVESTMENT PERFORMANCE UPDATE (Q1, 2021)
EPPF Message from the Chief Executive and Principal Officer
1,2 Testing
Scam alert warning
2021 Tax Certificate re-issue
EPPF Operations - impact of protests
Update: Impact of recent social unrest
Withdrawal of retirement savings by active members
Amended Fund Rules
THE ENHANCED EPPF MOBILE APP FINALLY HERE!
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The Minimum Individual Reserve (MIR) explained
The EPPF partners with Equites Property Fund in logistics deal
EPPF’s Digital Transformation Journey
2022 Pensioner increase and bonus
Message from the Chief Executive
Member Update - October 2021
2021 Integrated Report
Member regulatory update: Release of the Two Retirement Reform Discussion
Eskom splits off transmission division
Pensioner Talk - September 2016
EPPF Member Guide
Pensioner Talk - April 2016
Pensioner Talk - July 2015
Pensioner Talk - October 2014
Pensioner Talk - October 2013
Pensioner Talk - May 2013
Pensioner Talk - December 2012
Pensioner Talk - July 2012
Pensioner Talk - March 2012
Pensioner Talk - October 2011
Pensioner Talk - April 2011
Pensioner Talk - December 2010
Pensioner Talk - July 2009
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Power Talk - September 2016
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Power Talk - June 2013
Power Talk - August 2012
Power Talk - March 2012
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Power Talk - April 2011
Power Talk - December 2010
Power Talk - May 2010
Power Talk - March 2009
Power Talk - January 2009
Pensioner Talk March 2017
Pensioner Talk November 2017
Power Talk October 2017
Power Talk March 2018
Pensioner Talk 1st Issue 2018
Power Talk 2nd Issue 2018
Pensioner Talk - 2nd Issue 2018
Power Talk 3rd Issue 2019
August Pensioner Talk 2019
September Power Talk 2019
December Pensioner Talk 2019 (Festive Edition)
December Power Talk 2019
Power Talk May 2020
Pensioner Talk May 2020
Pensioner Talk July/August 2020
Power Talk July/August 2020
Pensioner Talk - November/December 2020
Power Talk - November/December 2020
Pensioner Talk June 2021
Power Talk - June/July 2021
Pensioner Talk November 2021
Power Talk October - November 2021
What is the difference between a defined benefit and a defined contribution fund?
Can I borrow money against my pension benefit for a loan or my bond?
What happens if my queries are not getting resolved?
How is the Board of Trustees appointed?
How is a section 37C death benefit distribution determined?
In-service members FAQs
Deferred pensioners FAQs
Pensioners and beneficiaries FAQs
Retirement reform FAQs
uygyugugu kjhiu iji
Can I choose an investment portfolio that my funds can be invested in?
Does the EPPF have both Pension and Provident Fund?
Can you pay my withdrawal benefit to the Eskom Finance Company?