SOUTH AFRICA - The R19bn ($2bn) Eskom Pension and Provident Fund is to switch from a final salary to a defined contribution (DC) scheme by the end of next year.
Pension fund trustees at the electricity company will meet on November 15, 2001 to begin a review of the investment strategy and discuss a possible alteration of the existing asset structures.
Pension fund manager Fabian De Beer said the review of the investment strategy may imply taking funds out of one asset class and investing them in another. He added that new asset classes may be considered, but only after the inception of the DC arrangement.
De Beer said in future the fund will be looking at investing in a local value growth product having already explored this product offshore.
He concluded that the investment review will not affect more than 40% of the assets.
The Eskom Pension and Provident Fund is invested in equities (51%), bonds (25%), cash (14%) and property (10%). The fund has two local bond managers, one offshore bond manager, three offshore equity managers and six local equity managers.
By Janet Du Chenne
More needs to be done to speed up DB to DC transfers but, as Jonathan Stapleton says, more also needs to be done to protect members.
The Pensions Ombudsman (TPO) took on 2,566 early resolution cases in 2018/19 after onboarding a team from The Pensions Advisory Service (TPAS), according to its annual report and accounts.
The lifeboat fund is in a good position despite reserves taking a £0.6bn hit. But the ramifications of the EU judgment on member compensation is an area of concern for CEO Oliver Morley, writes Stephanie Baxter