“We view the proposed Eswatini National Provident Fund (ENPF) Conversion Bill, in its current form, as the systematic killing of the Public Service Pensions Fund (PSPF). That is how we at least understand it.”
This is according to PSPF’s Chief Executive Officer (CEO) Masotja Vilakati. The CEO made these remarks on Thursday during a media engagement with the Editors Forum, held at the PSPF Building.
He noted that the only way the Fund can be sustained is through the reduction of member contributions.
“Our Actuaries have calculated and found out that if the contributions are reduced, then our deficit would increase by E2 billion.” As it stands, PSPF’s assets are estimated at E37.5 billion and its liabilities at just over E42 billion.
Vilakati added that in a few years, as current members reach retirement age, all civil servants will then become members of the ENPF, meaning the reduced contributions will become permanent, thereby eliminating the PSPF scheme. He said the government would then have to bail out the scheme.
Before concluding his presentation, the CEO reiterated that, as the PSPF, they support the conversion, but their only challenge is the inclusion of civil servants in the proposed conversion. “We have stated in various forums that we support the conversion because it stands to benefit EmaSwati, but the problem is that it threatens the existence of PSPF when civil servants are included. The fact that the government will not contribute any additional amount to ENPF for the civil servants makes this proposed conversion a non-starter.”
He said, ideally, for them to fully support the Bill, it should include employers but exclude the government as an employer, and also exclude employees in the service of the government.