PSPF BOARD FEES, ALLOWANCES UP BY 84.6 PER CENT IN 2017

MBABANE – Public Service Pensions Fund (PSPF) executive management smiled all the way to the bank to cash in on remuneration fees which increased by approximately 9.4 per cent.

During the financial year ended March 31, 2017, executive management of the fund which boasts of assets worth E20.5 billion, saw an increase of E616 312 in their remuneration from E6.5 million in the financial year ended March 31, 2016 to E7.1 million. “Total remuneration paid to executive management during the year was E7 142 822 (2016: E6 526 510),” the annual report has revealed.

Report

The report states that executive management consists of Chief Executive Officer Cleopas Dlamini, Director Finance F.J Mabuza, Director Corporate Services E. Makhanya, Director Operations J.J Ndlangamandla, Director Information Technology S.S Shongwe, Director Internal Audit and Risk P.T Dlamini and Director Investments B.M Vilakati. On the other hand, fees, allowances and expenses of the Board of Trustees and committees showed an increase of approximately 84.6 per cent to stand at E1.7 million from E968 228 in 2016. The difference in amounts spent during the year under review was almost double as it stood at E819 482. The board of Trustees as reflected in the report are Sandile Ceko (Chairman), D.M Maduna, Brigadier General S.C Kunene, D.J Ngwenya, S.J Magagula, M.M Masuku, S.M Mabila, S.N Simelane, and W.M Dlamini. The three committees are: Finance and Audit Committee, Human Resources Committee and Investments Committee chaired by Phiwayinkhosi Ginindza. 

It should be mentioned that Ceko reported that 2016 saw the fund experiencing a dynamic but challenging year with several developments taking place both in the investments and key operational areas which had directly impacted its membership base. He reported that pension related benefits disbursed in the year grew 28 per cent reaching an all time high of E948 million, therefore positioning the fund as a significant contributor to the country’s overall Growth Domestic Product (GDP) while also ensuring the good economic livelihood of members and beneficiaries.

Explained

He explained that assets on the other hand witnessed marginal growth to reach E20.5 billion owing to subdued gross returns arising from difficult trading conditions in the overall investments domain. “The overall result has been that though positive growth was  realised in the Fund’s assets base, the liabilities (pensions related) increased at a higher rate (28 per cent); a result which has widened the deficit and dropped the funding level to  75.5 percent,” Ceko reported.
He said the board was exploring proactive strategies to rein in the liabilities and return the funding level to a positive trajectory for long term sustainability. The fund made also pointed out that it made its debut into direct agricultural investment through the setting up of a large dairy project at Sidvokodvo in collaboration with Swaziland National Provident Fund SNPF and Old Mutual. PSPF as the majority investor holds a 50 percent stake through a contribution of E79 million to the farming project.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: