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South Africa pensioners reportedly oppose prescribed assets plan

The state workers’ pension funds lobby group says the plan would be strongly opposed.

South Africa’s intentions to tap state workers’ pension funds to revive a struggling economy would be strongly opposed, the Sunday Times reports, citing a major trade group on pensions.

Read: Ramaphosa calls for discussion on utilising pension funds for projects

The state workers’ pension funds lobby group doesn’t trust government investing pension funds to bail out struggling state-owned companies such as utility Eskom, said Adamus Stemmet, spokesman for the Association of Monitoring and Advocacy of Government Pensions. The investments wouldn’t yield positive returns, Stemmet told the weekly.

President Cyril Ramaphosa told Parliament on August 22 the nation must debate the use of prescribed assets to rejuvenate investment and boost tepid economic growth. Continuing to invest pension funds in the debt-laden state-owned utility Eskom, for example, would result in further losses, Stemmet said.

“If we could have trusted the government, this might have been an option,” Stemmet said. “But we cannot trust this government; there would be a negative return on any money invested in Eskom or any other state-owned enterprise.”

The Public Investment Corporation, which manages about R2.2 trillion on behalf of state workers, is under pressure to adopt a mandate that includes economic growth rather than focus purely on financial returns.

© 2019 Bloomberg L.P.

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If regulation 28 was put in place to protect people’s pensions bmo prudent, non risky investments, how can this be reconciled with prescribed assets if invested in sub investment grade SOE bonds ?

Unbelievable, communist voters objecting to share their “capital” with their Marxist masters who they now say they don’t trust but still support them ?…..can’t beat stupidity and hypocricy with a stick

Not all civil servants and government pensioners are ANC voters. Think of the tens of thousands who were employed by the state before 1994.

Having seen what happened with the Telkom pensioners they are surely opposed to the ANC’s new heist.

And so far Solidarity and the SAOU have publicly announced their opposition to the use of their members’ savings to fill the ANC trough.

Private sector employees should also be extremely concerned. Being an employer, and knowing what the ANC does with money, I am concerned for my employees’ sake.

Thus far no private prescribed assets will be touched for now – My employer’s pension and fund is privately held I will not allow these fools to access my money or else I move my pension offshore should they announce to target private owned and held pensions

Fair comment, but let’s wait to hear from the anc tripartheid pensioners who I suggest are in the majority of this diner scheme.

Reply to both LucienneG and Bob123:

I think that the large unions will agree to the ANC plan on condition that private pension funds are included as prescribed assets.

That way their members are “insured” against the risk of their pensions being totally depleted by the savings of others.

Known as “moral hazard”.

It is totally ironic that the very same tripartheid alliance members gave the go ahead for the State to use their pension funds, yet knowingly they do not trust the State but yet allow the government to access huge amounts of capital..this is totally sickening instead of being bold I wish i could actually meet the president and actually ask him in public to make hard decisions or else face removal of office.

This might be the right moment for all hardworking government employees to resign their jobs and take their pension money somewhere safe.

well maybe we can see a bloated eskom workforce and also the wage bill for every public servant needs to be reduced

You know, it is all really simple. Just get more investors…..and this is where it ends. I will not invest where ramapussy is openly advocating EWC but Zwelitini’s 3 million hectares is excluded. Now farms, tomorrow my factory/ mine? Ag voertsek man, SA=Zim 2.0

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