1. Presentation to Portfolio Committee on Public Service and Administration as well as Performance Monitoring and Evaluation
1 March 2017

2. GEPF Representatives GEPF
Major General Dries de Wit – Vice Chairperson: Board of Trustee and Chairperson: Benefits and Administration Committee
Adri van Niekerk – Company Secretary

3. Agenda Overview of GEPF Operating Model Fund Growth Financial Position
Pension Increases
Strategic initiatives
Current priorities

4. Overview GEPF is currently the largest pension fund in Africa
In terms of Assets: Over R1 638 billion
1.269 m active members
423k Pensioners & Beneficiaries
One of the few DB schemes in SA
Government is the sponsor
Juristic Entity – separate from Government
Governed/Managed by a Board of Trustees
16 Member board
8 employer representatives
6 employee representatives
1 pensioner representative
1 forces representative

5. Operating Model Policy and Strategy Government Employees Pension Fund
Investment Mandate
Administration Agreement
And SLA
Public Investment Corporation
Government Pension Administration Agency
Implementation

6. Fund Growth

7. Return on Investments: Annual to 31 March each year

8. Benefits vs contributions
R-billion
2010
2011
2012
2013
2014
2015
2016
Contributions
received 36 40 51 49 50 56 60
Benefits
awarded 28 30 37 43 58 86 83
Difference +8
+10
+14 +6 -8
-30
-23

9. Resignation Trend

10. Financial Position DATE FUNDING LEVEL % VALUATOR 1 May 1996 72.3
Ginsberg, Malan, Carson
31 March 1998
96.5
NBC Employee Benefits
31 March 2000
96.1
31 March 2001
98.1
31 March 2003
89.4
Alexander Forbes Financial Services
31 March 2004
31 March 2006
101.7
31 March 2008
100.0*
31 March 2010
31 March 2012
Towers Watson
31 March 2014
31 March 2016
* The funding level has been determined with reference to the affordable reserves only

11. Pension Increases – Past 11-years
Date of Increase
Pension Increase (excluding CPI catch-up)
CPI catch-up (percent of CPI)
Year-on-year inflation (CPI)
Pension increase awarded as a % of inflation
1 April 2006
4.50%
90%
3.35%
134.33%
1 April 2007
5.50%
100%
5.41%
101.66%
1 April 2008
7.00%
8.42%
83.14%
1 April 2009
9.00%
11.76%
76.53%
1 April 2010
5.60%
4.82%
116.18%
1 April 2011
3.58%
125.70%
1 April 2012
4.80%
6.12%
78.43%
1 April 2013
6.00%
107.14%
1 April 2014
5.30%
100.00%
1 April 2015
5.80%
1 April 2016
110.4%
6.6%

12. Strategic Initiatives
5 Strategic Objectives
Improve Benefits Administration (including ICT system modernisation)
Improve Member and Beneficiary Communication and Education
Improved Investment Monitoring
Risk Management Architecture
Improve Stakeholder Relations

13. Priorities from now to March 2017
Asset Liability Model
Strategic Asset Allocation
Review of PIC mandate
Statutory Actuarial Valuation
Relevant benefit changes
Financial literacy
King IV compliance
Value added benefits
Complaints Handling Mechanism
Enhance communication

14. QUESTIONS?