Worry over use of state pension money to fund government projects

THE Association for the Advocacy and Monitoring of Government Pensions (AMAGP) notes with alarm the statement from the Minister of Finance reaffirming the government's plan to fund industrial development projects from pension funds.

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In principle, pension funds should invest in the best interest of their members, not be cajoled into bowing to governmental pressure to fund governmental daydreams.

Governmental projects should be funded by taxpayers’ money, not by putting pension money at risk.

We are particularly concerned about the ongoing pressure on the funding level of the Government Employees Pension Fund (GEPF). The funding level, after accounting for contingencies, has decreased from 102% in March 2006 to 81% in 2024.

This decline has resulted in a shortfall of approximately R583 billion in the Fund's liabilities.