MBABANE – The Public Service Pensions Fund (PSPF) recorded a E632 million after-tax surplus in the quarter ended June, exceeding its budget by E139 million, official figures show.
According to the Ministry of Public Service’s 2026/27 Second Quarter Performance Report, the pension fund’s surplus was 28.2 per cent above its quarterly budget of approximately E493 million, reflecting stronger-than-anticipated investment income and lower-than-budgeted administrative expenditure. The performance was achieved despite significantly lower revaluation gains and higher withholding tax expenses, which partially offset the positive contribution from investment activities.
The PSPF, which administers pension benefits for eligible public servants in Eswatini, generated E658 million before tax during the quarter, against which withholding tax of E26 million was deducted to arrive at the E632 million surplus after tax.
Investment income emerged as the biggest contributor to the fund’s financial performance, amounting to E745 million against a quarterly budget benchmark of E628 million. This represented a favourable variance of E117 million or 18.6 per cent.
The report attributes the performance to income earned across the fund’s domestic, South African and offshore investment portfolios, which contributed materially to the quarter’s surplus. On the expenditure side, the fund recorded administration expenses of E51 million against a quarterly budget of E66.3 million, translating to a favourable variance of E15.3 million or 23 per cent below budget.
Investment fees also remained below the budget benchmark, amounting to E46 million compared to the projected E48.3 million. This represented a favourable variance of E2.3 million or 4.8 per cent. However, the fund’s revaluation gains were significantly below expectations, amounting to E53 million against a quarterly budget of E291 million. This resulted in an unfavourable variance of E238 million or 81.8 per cent.
The report attributes the lower-than-budgeted gains to subdued appreciation across certain asset classes amid continued volatility in global financial markets. Withholding tax on foreign investment income also exceeded expectations, amounting to E26 million against a budget of E15.3 million. This represented an unfavourable variance of E10.7 million or 69.8 per cent above budget, mainly due to increased taxable foreign investment income.
Despite these cost and investment valuation pressures, the fund maintained its surplus position.
Meanwhile, the fund disbursed E458 million in pension and other benefit payments during the quarter against a budgeted E683 million, resulting in expenditure that was E225 million below the budget. The payments catered for 26 091 pensioners and beneficiaries, comprising 11 821 principal pensioners and 14 270 dependants. Pension payments accounted for the largest portion of the disbursements at E343 million, followed by E97 million in retirement lump-sum payments. A further E15 million was paid in lump sums relating to deaths, while withdrawals accounted for E2 million and funeral expenses amounted to E1 million.
The report also indicates that 244 exits were processed during the quarter, with 174 claims, representing approximately 71 per cent, paid within five days.
Another 40 claims or 16 per cent, were settled within 15 days, while 10 claims took up to 30 days. One claim took up to 60 days, two took up to 90 days and 17 took as long as 120 days.
The longer processing periods, according to the report, point to the need for continued improvements in coordination and claims-processing timelines between the fund and relevant stakeholders.
