BY MBONO MDLULI
MBABANE – The Public Service Pensions Fund (PSPF) has made E3.390 billion as its income in a space of a year.
The E3.390 billion is in respect of E2.128 billion made by PSPF from investments and E1.262 billion made from contributions. This is contained in a 2024/25 first quarter performance report of the Ministry of Public Service. The PSPF is one of the parastatals under the Ministry of Public Service, which is a pension fund for civil servants.
The PSPF income statement for the year ended on March 31, 2024 states that in the quarter ending in June 2023, contributions were at E318 million. In the following quarter (September 2023), the contributions made to PSPF were at E342 million, while in the following quarter (December 2023), the contributions were at E340 million.
According to the statement, the last quarter (March 2024) shows that PSPF collected E337 million. The total collections for this organisation in this period amount to E1.262 billion. In terms of the investment income, PSPF made E485 million in the quarter ending in June 2023. The Fund made E822 million in the following quarter (September 2023).
In the following quarter (December 2023), PSPF made an investment income of E822 million, while in the following quarter (March 2024), that income dropped to E811 million. This translated to a yearly investment income of E2.128 billion.
The Fund was established under Section 3 of the Public Service Pensions Order, 1993 as a Contributory Defined Benefit Scheme. With effect from May 1, 2007 the Public Service Pensions Order Regulations were amended and all members contribute at a rate of five percent of pensionable salary whilst participating employers contribute at a rate of 15 percent of pensionable salary.
The Government of the Kingdom of Eswatini and any parastatal body or other service which the Minister, in consultation with the Board of Trustees, may determine to be “public service” for the purpose of the Public Service Pensions Order, 1993 are deemed participating employers.
Membership of the Fund is restricted by the Public Service Pensions Order, 1993, to those groups employed in the Government of the Kingdom of Eswatini’s public service as defined under Section 2 (a)-(d) of the Public Service Pensions Order, 1993.
The Fund is, as from the commencement date on 1st November 1993, responsible for the payment of all benefits arising under the Public Service Pensions Order of 1993 and Regulations; and pension benefits to individuals who are entitled to receive such benefits under the provisions of the Pensions Act of 1968, the Umbutfo Eswatini Defence Force (Gratuities) Regulations of 1979, and the Commercial Union Pensions Scheme for Teachers (CUSADA).
The Financial Year of the Fund is the 12 months period from April 1 through to the March 31. The Report details activities of the fourth Quarter period from January 1, 2024 to March 31, 2024.
According to the Ministry of Public Service Report, the Fund’s financial performance in the quarter under review declined compared to the third quarter ending 31 December 2023. The Fund recorded a net surplus of E743.1 million in the period under review from a net surplus of E1 388.8 million recorded in December 2023.
The year-to-date surplus is at E2 897.4 million, with a favourable variance of 74 percent to year-to-date budget. This significant increase in performance was a result from resurgence in global equity markets due to stagnation in inflation. This improved prices in equities resulting to higher revaluation gains in the period under review.
