State raid on pensions would be a disaster — but don't panic

15 March 2020 - 00:07 By

Are we entering a new phase of prescribed assets for pension funds? And if so, should you be worried? These questions have become more prevalent in the past few weeks after President Cyril Ramaphosa and finance minister Tito Mboweni publicly discussed a proposal from Cosatu to use the Government Employees Pension Fund (GEPF) to help bail out ailing Eskom.

Mboweni went so far as to say if pension money was used, it should include private pension funds, a comment many believe foreshadows a new era of prescribed assets - where a pension fund is legally required to invest a certain portion of its funds in state assets...

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