LOBAMBA – The Public Service Pensions Fund (PSPF) has reiterated its call for public officers to be excluded from proposed Eswatini National Pension Fund (ENPF) Bill, 2025.
The call was made by the Chief Executive Officer of the PSPF, Masotja Vilakati when making submissions in Parliament yesterday.
The CEO first appeared before the Ministry of Labour and Social Security where he made his submissions verbally and also submitted in writing.
With the PSPF appearing before the Public Accounts Committee (PAC) on the same day, the CEO was again called up to explain the PSPF’s stand on the issue.
In his written submissions, the CEO warned that the legislation in its current form could undermine existing pension protections, threaten the sustainability of the PSPF and create uncertainty for public servants.
Vilakati clarified from the outset that PSPF supported the conversion of the ENPF from a provident fund into a pension fund.
However, he stressed that the organisation’s concerns centred on the treatment of public officers and the apparent failure of the Bill to recognise PSPF as a statutory pension fund established by law.
According to the PSPF, public officers have historically been covered by separate pension legislation and any reforms to the national pension framework should preserve that arrangement.
The CEO argued that the Bill could potentially affect the pension rights of public officers and compromise the continued operation and long-term sustainability of PSPF if safeguards are not introduced.
Central to PSPF’s concerns is Section 195 of the Constitution, which protects pension benefits for public officers.
The PSPF submitted that any legislative changes affecting public servants must not place them in a less favourable position than they currently enjoy.
Vilakati also cited Section 11 of the Public Service Pensions Order, 1993, which provides that any law inconsistent with the provisions of the Order is deemed amended to the extent of the inconsistency.
The pension fund warned that the inclusion of public officers within the ENPF framework could have significant financial implications for both employees and the fund itself.
According to the submission, government contributions to PSPF should remain unchanged even if public officers were brought under the ENPF system.
PSPF argued that any reduction in government contributions would diminish the guaranteed pension benefits currently enjoyed by public servants under the defined benefit scheme established by law.
The fund further noted that PSPF operates as a defined benefit scheme, which guarantees pension benefits regardless of the financial performance of the fund.
This differs from contribution-based arrangements where benefits may depend on accumulated contributions and investment returns.
Vilakati highlighted the significant progress made by PSPF over the past three decades, noting that the fund’s financial position had improved substantially.
He told the committee that the fund’s funding level had risen from 28 per cent in 1996 to 87.5 per cent in 2026, demonstrating improved financial sustainability while maintaining guaranteed benefits for members.
The chief executive cautioned that diverting future public servants and their contributions away from PSPF could weaken the fund’s long-term viability.
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Public Service Pensions Fund Chief Executive Officer Masotja Vilakati responding to queries raised by the Public Accounts Committee. (R) Matsanjeni South Member of Parliament Sabelo Ndlangamandla makes a submission during the appearance of the PSPF before the PAC yesterday. (Courtesy pics)