Government employees’ pensions are safe amid Steinhoff crash
Civil servants need not fear that their pensions will be negatively affected by the spectacular crash of Steinhoff this week‚ according to the Government Employees Pension Fund (GEPF).
In a statement released on Friday the GEPF said that as at 31 March 2017 the GEPF through the Public Investment Corporation (PIC) owned about R28-billion in Steinhoff‚ about 10% of the shares of the company but 1% of the total assets of the Fund.
Following a massive decline in Steinhoff’s share price‚ the GEPF’s investment was worth a little over R2-billion by mid-morning on Friday.
The fund is valued at R1.8-trillion.
Steinhoff lost R194-billion of its total market value by close of trading on Thursday.
“The impact of significant movement in the share price on the GEPF is significant but manageable. As a defined benefit fund‚ the movement in the value of individual investments does not affect the benefits to members and pensioners‚” the statement read.
“Therefore benefits to members and pensioners are safe.”
Allegations of accounting irregularities by Steinhoff subject to ongoing criminal investigations by German prosecutors were a serious concern for the GEPF.
“The GEPF through the PIC is monitoring the situation while awaiting further information from investigations by domestic and international regulators and/or law enforcement agencies‚ to decide on an appropriate course of action.”