Public service pensioners decry the GEPF’s 2.9% increase as inadequate, with many facing severe financial struggles in retirement.
Many state pensioners are enraged by the Government Employees Pension Fund (GEPF) granting an increase of only 2.9% in pensions paid to public service pensioners, describing it as an insult.
The increase comes into effect next month.
A civil service pensioner wrote to Moneyweb: “Those who retired years ago on a low pension will be unable to survive. Appeals that an appropriate increase adjustment has become essential for those with a small pension [have] consistently gone unheeded.
Pensioners unhappy with 2,9% increase
“Cadres in the GEPF and Public Investment Corporation [PIC] prefer to ensure that available funds flow elsewhere; to ‘investments’ that have nothing to do with pensions,” he said.
“Private sector investors achieved returns of between 12% and 15% in the past year, while the largest investor in Africa, the PIC, managed a little over 3% on behalf of the GEPF.
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“Why this failure? There was clearly a big mistake,” he complains in an e-mail.
After 34 years of service as a nurse in a public health institution, Rebecca Maile had to invest part of her pension in a business to survive a cash crunch which has hit her former colleagues hard.
Maile said the increase was a pittance. “The 2.9% increment makes no difference when looking at the high inflation rate and economic meltdown we are facing.
Increase a pittance
“While my situation is better, compared to that of former colleagues, it should be said the meagre GEPF increase will not go far in cushioning us against inflation.
“Some of my former colleagues have ended up in mental health institutions due to financial difficulties. The state grant they now live on is also proving not to be enough,” said Maile.
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After retirement, Maile ploughed her earning into “a spaza shop and rooms for rental” – making it easier for her to take care of five dependants.
The pensioner who contacted Moneyweb said the problem stemmed from political influence over the PIC and GEPF.
Political influence over PIC and GEPF
“The government is the biggest threat to the pension fund and ensures political control over the pension fund.
“The minister of finance determines the investment policy of the GEPF and appoints the directors serving on the PIC board. The deputy minister of finance is the chair of board of directors of the PIC. This equates to firm political control.
