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Johannesburg - The R1.3trn Government Employees Pension Fund (GEPF) is running low on its contingency reserves, according to Monday's Business Report.
At least 360 000 pensioners who drew their pension from the fund could be affected if the global economy went into "seismic shock", the newspaper reported.
According to the report, the fund had down-played opposition parties' concerns that the low reserves placed it in danger of guaranteeing benefits for pensioners who enjoyed defined benefits, in the event of a shock.
GEPF board of trustees chairperson Arthur Moloto, who is an ANC MP, reported to Democratic Alliance MP David Ross that the reserves were at just below 6%of total assets.
Business Report could not reach Moloto for further comment as he was in Kenya on GEPF business.
The principal executive officer of the fund, John Oliphant, said the fund was financially sound, describing the contingency reserve as merely an accounting term.
While he accepted the fund would want a bigger reserve, it had dropped from 19% (R64bn) as at the end of the 2012 financial year, when the fund’s assets were at R1.38trn.
A recent figure for liabilities was not available but at that time stood at more than R990bn, while assets had dipped to R1.25trn.
The contingency reserve was about R50bn, but evaluations only took place every three years.
