Date: 12 December 2024

GEPF Board Appoints Frans Baleni as its Chairperson.

Pretoria – The Government Employees Pension Fund (GEPF) is pleased to announce
the appointment of Mr Frans Baleni as a trustee and new Chairperson of the Board of
Trustees. Mr Baleni was appointed Chairperson at the Board sitting of 11 December
2024, following the resignation of the former chairperson, Mr Dondo Mogajane.
The GEPF Board of Trustees expresses its confidence in the leadership of Mr Frans
Baleni and believes that Mr Baleni’s strategic vision and vast experience will be
instrumental in guiding the Fund towards its objectives, while ensuring the continued
financial sustainability of the Fund for the benefits of its members and pensioners.
GEPF looks forward to the valuable contributions that Mr Baleni will bring to the Board
as the Fund navigates the challenges and opportunities that lie ahead.

Issued by:

Government Employees Pension Fund
Media enquiries, please contact:
Matau Molapo
Email: matau.molapo@gepf.co.za
Tel: 012 424 7315 / 079 1910 757

MEDIA RELEASE

12 November 2024, Pretoria

The Government Employees Pension Fund (GEPF) is pleased to announce its financial results for the year ended 31 March 2024.

Key Performance Indicators:

• Market value of R2.38 trillion increasing by R61 billion from the previous financial year
• Investment market value increased by 2.6%
• Annual return of 4.9% compared to 3.5% in 2022/23
• Net investment income of R116.22 billion, interest income of R59.72 billion, property income of R 2.07 billion and a dividend income of R52.04 billion
• Member contributions increased by 10.8% to R91.94 billion

The 2023/24 financial year was turbulent and uncertain for investors in South Africa and globally. Despite the volatile environment, the GEPF portfolio remains financially strong and resilient recording growth of 2.6% to achieve a market value of R2.38 trillion, the highest in its history. This represents a growth of R61 billion and an annual return on investment of 4.9%. The GEPF’s 10- year annualised return was 7.2% for the period 2015-2024, demonstrating financial stability with a funding level of 110.1%.

Achieving growth amidst the volatile economic conditions illustrates that the Fund has been resilient, and the Fund’s investment strategies continue to protect its assets. The investment returns for the financial year are satisfactory, noting the tough and volatile conditions in the face of slow economic growth, high unemployment, global challenges of conflicts, high energy costs and inflation.

Active Membership increased by 0.84% from 1 267 307 in 2022/23 to 1 277 902 in 2023/24 and contribution income increased by 10.8% during the reporting period to R91.94 billion. Pensioners increased 4.3% from 336 629 in 2022/23 to 351 100 in 2023/24.

The Fund processed and finalised 35 523 retirement claims compared with 37 440 in 2022/23. The benefits awarded to these claims amounted to R22.6 billion (R22.3 billion in 2022/23) in gratuity payments and R77.6 billion in annuities compared with R70.4 billion in the previous year.

The total value of resignation benefits paid amounted to R27.6 billion (2022/23: R32,9 billion), R7.5 billion (2022/23: R9,8 billion) was paid in death benefits and funeral benefits worth R350.9 million were paid (2022/23: R416 million) totalling 24 380 claims (2022/23: 28 453). Spouse pension benefits to the value of R13.2 billion (2022/23: R12.1 billion) were paid to 174 188 beneficiaries (2022/23: 171 592) and R1.4 billion (2022/23: R948.8 million) was paid in child pension benefits to 23 477 qualifying children (2022/23: 15 809).

The Fund’s net cash flow position was R59.71 billion as at 31 March 2024. This is largely attributable to net investment income received of R109.02 billion, contributions received of R91.94 billion and benefits paid of R141.35 billion. These figures illustrate the GEPF’s commitment to meet its financial obligations and pay benefits to its members, pensioners, and beneficiaries.

The GEPF continues to monitor the implementation of its investment strategy through the mandate given to the Public Investment Corporation (PIC) to ensure effective and efficient implementation. In the spirit of strengthening oversight capabilities, the GEPF continued to implement recommendations from the Mpati Commission.

Furthermore, the GEPF and its administrator, the Government Pensions Administration Agency (GPAA) have approved an enhanced GPAA modernisation roadmap and are actively working to enhance operational turn-around times. The GPAA experienced security breaches in the year under review. Accordingly, the GEPF reported to and engaged the Information Regulator regarding the data breach incidents. The GEPF continues to support the GPAA to build a more robust information technology environment.

/Ends The Audited Financial statement can be reviewed on the GEPF website on www.gepf.co.za

Issued by Government Employees Pension Fund
For media enquiries:
Sonke Dandala Email:
sonke.dandala@gepf.co.za
Tel: 084 665 1006

Media Release
12 July 2024, Pretoria

The Government Employees Pension Fund is aware of an affidavit made by the former VBS Chairperson and the contents thereof. The GEPF will not comment at this stage about the contents of the affidavit including reference made to the GEPF Chairperson, as the matter is part of a legal process. The GEPF Chairperson has publicly issued a statement in his personal capacity on the matter.

Issued by:
Government Employees Pension Fund (GEPF)
For more information, please contact:
Matau Molapo
Email: matau.molapo@gepf.co.za
Tel: 012 424 7315 / 079 1910 757

Media Release
21 June 2024, Pretoria

The GEPF is pleased to announce that the Self-service portal and App are back online, effective from Friday, 21 June 2024. The Self-service portal and App have been rebuilt to ensure more robust platforms. The platforms provide security measures that protect members’ information from any cyber-attack or intrusion.

Members of the GEPF will be required to change their password, through the Self-service portal and App profile. This measure has been introduced to affirm the identity of the members accessing the information.

The Self-Service can be accessed through the GEPF app and the web portal through the GEPF website. We urge members to be cautious and not share their password with any third party. Passwords should be protected at all times. We further discourage members from allowing their device to save the password, unless the device has other security features to validate the user. Importantly, members must not access the app by connecting via any public Wi-Fi as this poses a security threat or risk.

For further enquiries, please email us on enquiries@gepf.co.za
For more information, please contact:
Call Centre: 0800 117 669 Email: enquiries@gepf.co.za

Issued by Government Employees Pension Fund (GEPF)

Media Release
09 May 2024, Pretoria

In a significant move to bolster support for members, pensioners, and beneficiaries during times of bereavement, the GEPF is pleased to announce a 25% increase in the funeral benefits for members. The purpose of GEPF funeral benefits is to help pay the funeral costs when a member or pensioner passes away. Funeral benefits are also paid out on the death of the spouse, life partner or eligible child of a member or pensioner.

This increase is effective from 1 April 2024 and will be applied retrospectively. All deaths occurring from 1 April 2024, will be eligible for the enhanced benefits. Dependents whose loved ones passed away from this date onwards and have already received a payment will also be eligible for a top-up to the benefit previously paid.

The enhanced funeral benefits are as follows:

• Member or pensioner: R20 000
• Spouse of member or pensioner: R20 000
• Eligible child: R8 000 per child; and
• Stillborn child: R8 000 per stillborn.

Previously, the funeral benefits for a member and pensioner were R15 000 and R6 000 for children and stillborn respectively.

The GEPF acknowledges the cultural and social significance of funerals within many South African communities, recognising them as essential rites that allow families to honour their loved ones with dignity. Aware of the financial strain these ceremonies can place on families, amplified by current economic challenges, the GEPF has acted to ease the burden.

It is after due consideration of these factors that the GEPF Board of Trustees (BoT) has increased the payment values of the funeral benefits to provide further assistance to families of GEPF members, pensioners, and beneficiaries during their time of bereavement. The decision reflects a deep understanding of the members’ and beneficiaries’ needs during such vulnerable times. This adjustment is designed to provide substantial relief, helping families focus on healing rather than financial stress.

Importantly, the criteria regarding how members, pensioners and beneficiaries qualify to submit a claim and the associated procedures for the funeral benefits remains unchanged. Details regarding the qualification criteria and procedures are outlined in detail on the GEPF website on the following link, https://www.gepf.co.za/funeral-benefits/

The GEPF is confident that the enhancement of the funeral benefits will contribute to easing the financial and emotional pressures on families, ensuring loved ones are commemorated with the respect and dignity they deserve.

/Ends
Issued by Government Employees Pension Fund

Media Release

Pretoria: 15 April 2024

The GEPF scored significantly above the median range compared to its local and global peers
of asset owners for responsible investing activities in the PRI 2023 Assessment Report.

PRI reporting is the largest global reporting project on responsible investment developed with
investors, for investors. The report facilitates learning and development by outlining how
signatories’ responsible investment activities compare year-on-year, across asset classes,
and with peers at a local and global level by providing high-level comparative data.

The GEPF scored exceptionally well across the various categories and in particular, on policy
governance and strategy, listed equity (active and passive) as well on fixed income and private
equity. The GEPF achieved scores ranging from 85 – 91%, well above the PRI median range
of between 40 – 65%, outperforming many of its local and global peers. The high scores signify
the GEPF’s commitment to include ESG factors in investment and ownership decision making
through the consistent application of fiduciary responsibility, in line with PRI Principle 6.

The impressive scores and stars achieved by the GEPF in the assessment report are listed
below:
• Policy governance and strategy: 81% and 4-stars (PRI median: 40-65%)
• Indirect – Listed equity – Passive: 91% and 5-stars (PRI median: 40-65%)
• Indirect – Listed equity – Active: 91% and 5-stars (PRI median: 40-65%)
• Indirect – Fixed income – Passive: 89% and 4-stars (PRI median: 40-65%)
• Indirect – Fixed income – Active: 89% and 4-stars (PRI median: 40-65%)
• Indirect – Private equity: 89% and 4-stars (PRI median: 40-65%)
• Confidence building measures: 85% and 4-stars (PRI median: 65-90%)

The GEPF is a founding signatory to the UNPRI and has been a member of the initiative since
its inception in 2006. PRI reporting is the largest global reporting project on responsible
investment and PRI signatories are required to report publicly on their responsible investment
activities each year. In turn, they receive several outputs, including an Assessment Report.

The scoring methodology for the 2023 Reporting Framework has an overall focus on:
• Signatories’ responsible investment implementation across their overall investment
processes;
• How specific responsible investment practices are implemented as a percentage of
assets under management covered;
• How sophisticated the responsible investment practices are for the majority of assets
under management;
• Consistency, including how policies are applied in different asset classes or subcategories, how policies are implemented by external managers or service providers;

The GEPF’s approach to responsible investment is driven by its Responsible Investment
Policy underpinned by the GEPF’ commitment and recognition that as an institutional investor,
we have a duty to act in the best long-term interests of our beneficiaries. The full report can
be found here, https://www.gepf.co.za/responsible-investment

Issued by:
Government Employees Pension Fund

MEDIA RELEASE

18 March 2024

The Government Employees Pension Fund (GEPF) is pleased to announce an annual pension increase of 6% to its pensioners effective 1 April 2024.

Pensioners who retired on or before 1 April 2023 are to receive an increase of 6%. Pensioners who retired after 1 April 2023 are to receive a proportionate increase based on the number of months they have been in receipt of pension by 31 March 2024.

This pension increase is based on the 5.50% inflation rate for the 12 months ending 30 November 2023 thus making the 6% increase equal to 109.1% of the Consumer Price Index (CPI) as provided in terms of GEP Law and Rules. The GEPF aims to grant increases to enable pensioners to keep up with rises in inflation but subject to this being affordable to the Fund at the given time.

The GEPF’s decision to grant inflation related increases is guided by our policies and a strong commitment to support our pensioners in managing the cost of living. We consistently strive to balance the need for reasonable pension adjustments with the long-term sustainability of the Fund.

It is noteworthy that increases beyond the stipulations of GEP Law and Rules are subject to policy considerations at the discretion of the Board, which meticulously considers the Fund’s investment performance, overall financial health, and the need to maintain the purchasing power of the pensions it pays to the extent affordable.

The GEPF remains dedicated to serving the best interests of its pensioners, ensuring they continue to enjoy a secure and dignified retirement.

For more information, please contact:

Call Centre:0800 117 669

Email: enquiries@gepf.co.za

Twitter: @GEPF_SA

MEDIA RELEASE

18 March 2024

The Government Employees Pension Fund (GEPF) is pleased to announce an annual pension increase of 6% to its pensioners effective 1 April 2024.

Pensioners who retired on or before 1 April 2023 are to receive an increase of 6%. Pensioners who retired after 1 April 2023 are to receive a proportionate increase based on the number of months they have been in receipt of pension by 31 March 2024.

This pension increase is based on the 5.50% inflation rate for the 12 months ending 30 November 2023 thus making the 6% increase equal to 109.1% of the Consumer Price Index (CPI) as provided in terms of GEP Law and Rules. The GEPF aims to grant increases to enable pensioners to keep up with rises in inflation but subject to this being affordable to the Fund at the given time.

The GEPF’s decision to grant inflation related increases is guided by our policies and a strong commitment to support our pensioners in managing the cost of living. We consistently strive to balance the need for reasonable pension adjustments with the long-term sustainability of the Fund.

It is noteworthy that increases beyond the stipulations of GEP Law and Rules are subject to policy considerations at the discretion of the Board, which meticulously considers the Fund’s investment performance, overall financial health, and the need to maintain the purchasing power of the pensions it pays to the extent affordable.

The GEPF remains dedicated to serving the best interests of its pensioners, ensuring they continue to enjoy a secure and dignified retirement.

For more information, please contact:

Call Centre:0800 117 669

Email: enquiries@gepf.co.za

Twitter: @GEPF_SA

MEDIA RELEASE

12 March 2024

The Government Employees Pension Fund (GEPF) has noted the release of data purportedly from its administrator, the Government Pensions Administration Agency (GPAA) by the ransomware group LockBit.

The GEPF is extremely concerned with this alleged security breach, as it was informed by GPAA that no data breach had occurred when it was notified of an attempt to gain access to GPAA systems by unknown individuals on the 16 February 2024. The GPAA subsequently established that this was an attempt by the ransomware group LockBit.

This morning, 12 March 2024, following the release of certain GPAA data by LockBit on 11 March 2024, the GEPF has been informed by GPAA that preliminary investigations has found that the certain GPAA systems were compromised. The GPAA is investigating the alleged data breach and whether this impacts the GEPF.

GPAA has reconfirmed that preventative action was taken when it became aware of the attempted access to its systems which included “shutting down” all systems to isolate affected areas. GPAA further confirmed that pension payments are not affected.

The GEPF is engaging with the GPAA and its oversight authority, the National Treasury to establish the veracity and impact of the reported data breach and will provide a further update in due course. Until the facts have been adequately established, the GEPF is unable to comment further on the matter.

Issued by:

Government Employees Pension Fund
For more information, please contact:

Matau Molapo
Email: matau.molapo@gepf.co.za
012 424 7315

The Government Employees Pension Fund (GEPF) has become aware of fraudulent letters being sent to GEPF members and pensioners, using fake GEPF letterheads by fraudsters trying to defraud members and pensioners off their pension’s monies.

The individuals are sending letters to GEPF members and pensioners to request information relating to their pending pension payments. These letters request members and pensioners to provide:

• Personal details such as identity numbers, pension numbers and bank details.
• Confirm that they agree to transact electronically with the GEPF with respect to submitting and processing of their information.
• Verifying personal details including email and cell phone details.
• Accept and respond to a One-time Pin (OTP) to legitimise the communication.

Members and pensioners are also being targeted via SMS’s encouraging them to resign and collect their pensions indicating that they would receive more funds when they resign rather than retire.

Pensioners and members are advised not to respond to such correspondence. Such correspondence should be brought to the attention of the GEPF. Pensioners and members are further advised to always contact the Fund to verify any type of communication, especially when they are expecting payment on their pensions.

The GEPF would like to make its members, pensioners, beneficiaries, and their families aware that:

• GEPF services are FREE
• No one is allowed to ask for a fee to assist GEPF current or former members, pensioners, beneficiaries, or their families with respect to GEPF services
• Members and pensioners are requested not to share their personal information such as identity document number, pension number, email addresses, cell phone numbers and bank account details.

Note to editor

GEPF is the largest Pension Fund in Africa with over 1.2 million active members and about 500 000 pensioners and beneficiaries. The Fund is responsible for more than R2.3 trillion in assets under its management.

Issued by: Government Pensions Administration Agency

For more information:

Enquires: GPAA Head of Communication: Mack Lewele 082 450 5076 or Dr Rakgwatha Mokou: 0818140030

Or contact the GEPF on:

Call Centre:0800 117 669
Email: enquiries@gepf.co.za
Twitter: @GEPF_SA

MEDIA RELEASE

20 November 2023, Pretoria

The Government Employees Pension Fund (GEPF) is pleased to announce its financial results for the year ended 31 March 2023.

Key Performance Indicators:

• Investment portfolio increased by R27.1 billion to R2.32 trillion from the previous financial year
• Investment market value increased by 1.2%
• Return on Investment of 3.5%
• Accumulated funds and reserves grew at an average annual rate of 6.65% for the 10-year period 2014-2023
• Net investment income of R82.2 billion (interest income of R 56.7 billion, dividend income of R56.4 billion and property income of R 2.03 billion)
• Member contributions of R83.1 billion • Benefits paid of R 137.4 billion
• Benefits paid of R 137.4 billion

In a period of uncertainty including poor economic performances, globally and in South Africa, the financial year 2022/23 was a challenging year for investors around the world. Despite these challenges, the GEPF investment portfolio recorded growth of 1.2% to a market value of R2.32 trillion, the largest in its history. This represents a growth of R27.1 billion, a 3,5% return on investment. Net investment income for the year amounted to R 82.2 billion, derived largely from dividend income of R56 billion, interest income of R 56.7 billion and net profit on sale of investments of R22.2 billion.

The positive performance can be primarily attributed to the positive performance of bonds and the depreciation of the local currency. The GEPF’s 10-year annualised return was 6.65%, illustrating financial stability with a funding level of 110.1%.

The modest growth amidst the tough economic conditions illustrates that the Fund has been very resilient, and that the Fund’s investment strategies continue to protect the Funds’ assets. The investment for the financial year is satisfactory, noting the tough and volatile economic conditions that global and local investors faced. Staying the course and not panicking when faced with sudden market volatility remains a crucial aspect of GEPF’s strategy.

Active membership remained stable over the year, while pensioner membership steadily increased. Active membership increased from 1 261 363 in 2021/22 to 1 267 307 in 2022/23 and contribution income increased by 1.39% during the reporting period. The increase is mainly because of an increase in retirements, resignations, and child pensions, while funeral and death benefits decreased.

The number of pensioners increased from 322 223 in 2021/22 to 336 629 in 2022/23. The total value of gratuities paid was R22.3 billion and annuities paid was R70.4 billion. The Fund finalised 37 440 retirement claims compared with 33 627 in 2021/22, reflecting an increase of 11% in claims. Resignation benefits paid amounted R32,9 billion (2022: R33,8 billion), R9,8 billion (2022: R14,8 billion) was paid in death benefits and funeral benefits worth R416 million were paid (2022: R550,1 million). Spouses pension benefits to the value of R12.1 billion (2022: R11.5 billion) were paid to 171 592 beneficiaries (167 679 in 2021/22), and R948.8 million (2022: R551.4 million) was paid in child pension benefits to 15 809 qualifying children (2021/22: 9 824).

These figures illustrate the GEPF’s commitment to meet its financial obligations and pay benefits to its members, pensioners, and beneficiaries. The Fund remains cash flow positive with R53 billion as of 31 March 2023. This is largely attributable to benefits paid of R137 billion, net investment income received of R107 billion, and contributions received of R83 billion.

The GEPF revised the mandate agreement with the Public Investment Corporation (PIC) for listed and unlisted investments during the 2021/22 reporting period and the revised agreements were signed effective from 01 April 2022. The revised mandate seeks to strengthen governance over the execution of the investment strategy by the PIC (on behalf of the GEPF), create a more harmonious legal framework, improve the focus and implementation of investment guidelines, and introduce accountability mechanisms in case of poor investment decisions. There is a need for greater transparency and accountability in the relationship between the GEPF and the PIC.

Furthermore, the GEPF and its administrator, the Government Pensions Administration Agency (GPAA) are exploring different models and methods to improve the payment of benefits. Over the past financial year, several initiatives were launched to realise this goal, including enhanced collaboration with employer departments, labour unions and continuing member and beneficiary outreach initiatives.

The new GEPF Board was appointed in July 2022 and is committed to growing the Fund as well as ensuring that the Fund becomes more efficient and effective in benefits administration and its investment strategies.

/Ends

The Audited Financial statement can be reviewed on the GEPF website on www.gepf.co.za

Issued by Government Employees Pension Fund Media
Enquiries:
Matau Molapo

T: +27 (0) 12 424 7315

M: +27 (0)79 1910 757

E: Matau.molapo@gepf.co.za

Media Statement
10 October 2023

Government Employees Pension Fund (GEPF) Chairperson Dondo Mogajane officially launched the GEPF’s Transformation Policy last week, marking a watershed move for economic transformation in South Africa. This policy, unveiled at the GEPF Annual Thought Leadership Conference 2023 in Cape Town, will throw the full weight of Africa’s largest pension fund behind promoting socio-economic development and addressing historic inequalities within the country and the financial sector.

Speaking at the conference, which was attended by influential figures from the financial sector and high-ranking government officials, Mogajane called on the financial services industry to rethink the way in which it invests and join in creating a more equitable and inclusive financial sector.

As South Africa’s largest investor with R2.3 trillion in assets under management, he highlighted the GEPF’s own resolute commitment to driving socio-economic change within the local financial landscape through strategically leveraging current and prospective investments, guided by the Transformation Policy.

“Being South Africa’s largest investor, we understand the important role we can play in addressing South Africa’s socio-economic imbalances through supporting and facilitating transformation, economic growth, job creation, and positive environmental outcomes,” he said.

“The Transformation Policy will be used to guide investments that will promote socioeconomic transformation, identifying specific impact areas that will be targeted to realise our objectives.”

It is important to note that ultimately if done correctly, the socio-economic transformation of our economy will result in an improved quality of life of our members, pensioners, and beneficiaries as well as the disadvantaged members of society.

The four key areas identified by the Transformation Policy include:

1. Industry-level transformation: The GEPF is committed to actively investing in return-seeking, sound investments that support the transformation of the financial services sector. These investments should encourage the growth of black-owned asset managers, private equity fund managers, fixed-income asset managers, audit firms, actuaries, and other relevant emerging financial service providers within the sector.

2. Economic transformation: The policy underscores return-seeking investments that advance Broad-Based Black Economic Empowerment (BBBEE) and transformation within the broader economy, and support access to finance for black-owned small and medium-sized enterprises, fostering job creation and economic growth.

3. Socio-economic transformation: The GEPF will channel investments into asset classes that aim to deliver positive financial and social service outcomes for South Africa’s previously disadvantaged populations, directly addressing historical disparities.

4. Environmental sustainability: Recognising the importance of considering ESG factors when making investment decisions, and especially environmental responsibility, the GEPF is committed to investments that support South Africa’s just transition and long-term environmental sustainability. These should include measures to mitigate climate change and promote renewable energy.

Mogajane emphasised that the GEPF intends to play an active role in overseeing the companies and projects it invests in, ensuring that its investments remain in alignment with its transformation objectives.

“I believe that for too long, the financial sector has been comfortable with the ‘same’. It is for this reason that we at the GEPF have taken the crucial policy decision to address some of the challenges that we face as a country, as an industry, and as an institution.

“We are excited about the launch of our Transformation Policy. Our commitment to South Africa and Africa is clear,” he concluded.

ENDS

For more information, please contact:
Matau Molapo,
GEPF Stakeholder Management and Communications Division

T: +27 (0) 12 424 7315

M: +27 (0)79 1910 757

E: Matau.molapo@gepf.co.za