PSPF will be E7 billion in the red in 5 years!
By Lwazi Dlamini
The Eswatini National Provident Fund Pension Bill of 2025, in its current form, if turned into an act of Parliament, would leave the Public Service Pension Fund (PSPF) a staggering E7 billion in the red.
The PSPF’s current deficit stands at E5 110 943, while the net assets stand at E37 589 103 and the liabilities stand at E42 700 042.
“The administration costs will be doubled as it were if this goes ahead.
If implemented now, it could carry as much as E2 billion in five years, worse off in terms of deficit and we are currently at E5 billion, so in five years we would be E7 billion,” PSPF CEO Masotja Vilakati says.
Outlining why they are standing their ground on the ENPF Pension Bill in its current state with the inclusion of civil servants, PSPF CEO Masotja Vilakati told members of the Editor’s Forum on Thursday evening at Ingcamu Building that the bill in its current form would systematically kill PSPF.
“Civil Servants must not be made worse off. Reducing PSPF contributions or including civil servants in the conversion will make members worse off. Pension rights are protected under both the Pensions Order and the Constitution of the Kingdom,” he said.
Vilakati re-emphasised that PSPF supports the conversion of ENPF for its members, but excluding civil servants, since the government is not committing additional funds.
He revealed that civil servants were excluded from ENPF as far back as 1974 and were catered for under separate legislation.
Vilakati further raised legal issues around the ENPF Pension Bill , saying that forcing civil servants into two statutory funds could be unconstitutional and financially unsustainable.
“There is no new budget allocation: Government has not provided fresh funds to support the conversion, which means contributions from the state as an employer would be reduced,” he added.
Vilakati highlighted that there is a deficit risk and any reduction in contributions would require reducing benefits, a move that is not legally supported and would push PSPF towards unsustainability.
“Civil Servants dedicate their lives to serving the nation. Their pensions are a promise of dignity after years of service and that promise must be protected,” Vilakati stressed.
