By Own Correspondent
Unfortunate and misleading headlines in various online and mainstream media platforms continue to claim: “Forcing civil servants to be part of Eswatini National Provident Fund (ENPF) proposed Pension Fund will violate the Government’s defined benefit agreement and collapse PSPF.”
This is simply false.
The reality is that the proposed Eswatini National Pension Fund Bill protects PSPF, safeguards current civil servants’ benefits, and strengthens retirement security for future generations. Let’s set the record straight:
Current Civil Servants Are Fully Protected
The ENPF Bill is non-retrospective. That means no current PSPF member will be forced into ENPF. Civil servants already in the PSPF keep their full “defined benefit” rights exactly as agreed in law. The new system applies only to employees hired after the Bill comes into effect.
Designed for Coexistence, Not Collapse
The ENPF and PSPF are structured to run side by side. Contributions to ENPF are currently capped at a ceiling of E4,000. This cap deliberately reduces pressure on PSPF. Actuarial design ensures that PSPF remains fiscally sound, while ENPF expands social protection coverage nationally.
ENPF Is a Defined Benefit Scheme
Confusion has been spread about whether the national pension fund will be a Defined Contribution (DC) or a Defined Benefit (DB). The Bill is crystal clear:
ENPF is a Defined Benefit scheme.
This means retirement income is guaranteed and predictable, not dependent on how much one saves or on market performance. The Defined Benefit model was chosen to alleviate poverty and ensure dignity for all emaSwati in retirement.
PSPF Sustainability Strengthened
For new employees, pension contributions are restructured — not reduced.
Of the 20% pension contribution:
• 10% goes to ENPF (on the capped E4,000 base).
• The PSPF share is calculated on the adjusted basic salary (full salary minus the capped portion).
This lowers PSPF’s future liabilities while keeping benefits guaranteed — a formula that ensures PSPF’s sustainability for decades to come.
Better Retirement Security for Future Civil Servants
Far from losing out, future civil servants will gain dual pensions: A PSPF pension (on the adjusted salary) plus an ENPF pension (on the capped salary). This combined package provides superior retirement outcomes compared to relying on PSPF alone. A National Reform with a Bigger Vision.
The ENPF Bill is about more than just government employees. It is about:
• Closing gaps in Eswatini’s social protection system.
• Extending pension security to all workers, private and public.
• Guaranteeing that no emaSwati retire into poverty.
BOTTOM LINE:
The ENPF Bill does not violate agreements, reduce benefits, or collapse PSPF. Instead, it protects current civil servants, ensures PSPF sustainability, introduces dual pensions for new employees, and builds a stronger, universal pension system that leaves no one behind.