FRIDAY, 11.30AM
The finance ministry on Thursday signed a partnership deal with a consortium of local and international businesses for the re-engineering of the government pension fund.
The Government Employees’ Pension Fund, SA’s largest, with 1,25-million members and annual pay-outs of R9-billion, has been running in deficit for years. Recent management changes have decreased the deficit, which stood at 40%, or R45-billion against total assets of R113-billion.
The aim of the re-engineering is to increase efficiency and cut costs, which will allow the state to cut its contributions to the fund, with potential savings to the government budget and important macroeconomic implications.
The Masibambane consortium includes Ramano & Associates, Bain & Co, KMMT Brey, Old Mutual Actuaries & Consultants, and Tsukudu & Associates. Technology will be supplied by EDS, while the Australian Administration Services will supply international performance benchmarks.
The precise form of the re-engineering will be decided later this year by the finance minister after receiving a report from the partnership on an initial four-month diagnostic phase.