South Africa’s Government Employees Pension Fund (GEPF) ended its latest financial year in a strong financial position, but for its members the bigger question is whether the fund’s administration can keep up.
For the 1.26 million active members and 565,221 pensioners and beneficiaries across all levels of government, the GEPF is more than just a pension fund.
It is a system designed to ensure that benefits are paid on time, that pensions are adjusted against rising costs, and that claims are processed efficiently. For many public servants and retirees, their pensions are more than just the balance reflected on the benefit statement, they put food on the table, fund education for children, and provide security in old age. When the administration falters, that security feels distant.
The latest annual report reflects an impressive picture of financial strength. Total assets reached R2.69 trillion as of 31 March 2025, up 13.1% from the previous year. Member contributions increased by 4% to R95.63 billion, while its investment return reached 14.1%. Benefits paid amounted to R167.16 billion over 12 months.
The funding level was maintained at 119%, underscoring a strong financial position, and the fund’s ability to meet its long-term objectives. The fund attributes the strong investment performance to domestic and foreign equities and domestic bond returns. The report credits this to a long-term diversified investment strategy.
The Public Investment Corporation, as the fund’s primary investment manager overseeing 97% of the GEPF’s portfolio, delivered results across these asset classes, contributing to growth in assets under management (AUM), from R2.38 trillion at the end of the previous financial year to R2.69 trillion as of 31 March 2025. These figures show that the GEPF remains Africa’s largest pension fund by assets, one of the biggest globally, and financially resilient amid economic headwinds.
The annual report also paints a more difficult picture on the ground, reflecting some of the pressures felt by members. There is acknowledgement of service delivery challenges, particularly around administration bottlenecks impacting claims processing, and turnaround times. Members continue to raise concerns about delays, even as the fund works to address them. Active membership dipped slightly by 0.81% while pensioner and spouse beneficiaries grew 2.2% adding to administrative demands.
The Government Pensions Administration Agency (GPAA) manages member services and the payment of benefits. Some of the initiatives undertaken to improve benefit payments include appointing additional staff to address the influx of divorce benefit claims, adding additional capacity to the call Centre to handle high call volumes, and accommodating manual calculation processes to facilitate continuous payments while further system developments are underway. For public servants relying on resignation, retirement, or death benefits plus funeral payouts, the pace of processing matters deeply.
A key factor was the cybersecurity breach at the GPAA in February and March 2024. The incident triggered a full system shutdown, disrupting operations and compromising some personal data. The GEPF and GPAA reported it to the Information Regulator, with no identity theft cases emerging. Recovery involved rebuilding infrastructure, implementing advanced security like multi-factor authentication, and accelerating a modernisation roadmap. By mid 2024, most systems were back online, though a claims backlog lingered.
The two-pot retirement system, effective 1 September 2024, piled on more strain. The GEPF received 691,501 withdrawal applications and paid 564,547 claims worth R14.37 billion in a short space of time. That volume was only 0.5% of the R2.69 trillion in assets but a significant administrative operation, coupled with the cyber recovery. The fund updated rules, communication tools, and apps to handle it, paying 70,679 total claims worth R167.16 billion for the full year.
The fund approved a 6% increase in pension payouts on 1 April 2024, followed by 2.9% in 2025. Such decisions balance sustainability with member needs, but delays in delivery erode trust.
The report outlines deliberate fixes. The Board of Trustees, 16 members split between employer and employee nominees, oversees via six committees and two subcommittees, including Audit, Finance and Risk; Benefits and Administration; and a new Advisory Board for unlisted investments. Independent specialists bolster expertise on valuations and human resources.
Key moves included revising policies on risk management, fraud, data protection, and combined assurance. The fund implemented an Enterprise Resource Planning system (ERP), upgraded its website and intranet, and advanced ICT modernisation (30% complete). Internal audits found no material deficiencies, with 26 of 47 findings resolved. The GPAA handles administration under a service-level agreement, with the GEPF pushing for better performance. The next test for the GEPF is not its financial survival; the fund’s financials prove it can weather market volatility and meet obligations. But the real test is service: turning robust assets into reliable, speedy benefits for members who depend on it. With cyber recovery ongoing, two-pot demand evolving, and regulatory shifts like the COFI Bill still working through Parliament, the fund must match its balance-sheet power with ground-level delivery. For public servants and pensioners, that is the measure of strength that counts most.
Written by Ziphozonke Mazibuko is an Independent Investment Consultant