By Phiwa Sikhondze
The 2023 Annual Report of the Public Service Pensions Fund (PSPF) has revealed that the Fund recorded a net surplus of E1.4 billion and increased its total assets by 7.64 percent to reach E31.7 billion in 2023.
The Fund also paid out a total of E1.4 billion in member benefits, compared to E1.3 billion in 2022. The benefits included gratuities, retirement annuities, death benefits, membership withdrawals, contracted employee benefits, and funeral cover expenses.
PSPF Chairman, Sammy Dlamini, attributed the positive performance to the growth of their foreign and domestic portfolios, as well as the prudent management of the Fund’s resources. He also thanked the Minister of Public Service, the Board of Trustees, management and staff, and the members and their families for their support and trust.
PSPF is a statutory body that provides social security and retirement benefits to its members, who are mainly employed in the formal sector. The Fund has over 200,000 active members and over 100,000 pensioners and beneficiaries.
The Fund’s income rose to E3.15 billion in 2023, compared to E3.04 billion in 2022. The main drivers of this growth were listed global equities and South African listed equities in the foreign portfolio, which recorded gains from interest earned and dividend income recognized through profit or loss. The Foreign portfolio accounted for 56 percent of the fund’s total assets.
The Annual Report notes that the domestic portfolio also grew to reach 44% of the Fund’s total assets, demonstrating the Fund’s confidence in the local economy and its commitment to contributing to its growth for mutual benefit. The Domestic portfolio consisted of investments in government securities, corporate bonds, equities, property, and loans.
The Fund’s funding levels remained steady at 81.1 percent in 2023, up from 80.2 percent in 2022. Dlamini concluded by emphasizing the Fund’s commitment to engaging with stakeholders to gather their input and suggestions, which are essential in shaping their operations and plans.