The Government Employees Pension Fund (GEPF) lost an eye-watering R200 billion due to the ongoing conflict in the Middle East.
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The Government Employees Pension Fund (GEPF) lost an eye-watering R200 billion due to the ongoing conflict in the Middle East.
In an interview with Moneyweb Radio, GEPF Chairperson Frans Baleni said the loss occurred in the first week of the war.
“It has to alter, given the geopolitical developments, just to give an example, with the war in Iran, in the first week, it wiped out R200 billion from our investment," Baleni said.
He added that the fund, which manages retirement savings for more than 1.7 million public servants and pensioners, is reviewing its investment strategy and will focus more on local infrastructure projects.
"So clearly, this means that we have to adopt the given developments, but also look at the strategic investments we are now going to be focusing on infrastructure development as part of our investment, because it's our view that while we're preserving the funds", Baleni added.
"We need good returns, but at the same time, we have to contribute to solving the economic problems of our country. If you look at the high level of unemployment, I normally say no work, no pension. We need more people to work and contribute to their pension fund so that the economy can be stable.
IOL previously reported that the fund confirmed a 3.5% increase for pensioners from April 2026, based on the latest inflation figures. The adjustment is meant to match the rise in the cost of living.
The fund said the increase, which took effect from 1 April 2026, applies in full to pensioners who retired on or before 1 April 2025, while those who retired after that date will receive a pro-rated adjustment based on the number of months they have been receiving a pension.
"Pensioners who retired on or before 1 April 2025 are to receive an increase of 3.5%. Pensioners who retired after 1 April 2025 are to receive a proportionate increase based on the number of months they have been in receipt of pension up to 31 March 2026," the fund said last month.
mthobisi.nozulela@iol.co.za
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