By Zweli Martin Dlamini
Africa-Press – Eswatini. A highly confidential Cabinet document leaked by Cabinet sources clearly outlines why the multibillion Public Service Pension Fund(PSPF) is allegedly opposing the proposed Eswatini National Provident Fund(ENPF) conversion into a Pension Fund.
The document was allegedly forwarded to Prime Minister Russell Mmiso Dlamini by the Pension Fund Board and Management but through Public Service Minister Mabulala Maseko this week so that, it could be included as a Cabinet meeting agenda.
But some Cabinet Ministers who spoke to this publication, accused the PM of siding with the Provident Fund while preventing or blocking the Public Service Pension Fund from approaching Cabinet to make a presentation.
As a result, the Board and Management of the Public Service Pension Fund allegedly approached their line Minister Mabulala Maseko to try and convince the PM to listen to both sides and, allow the PSPF to be heard before the highly anticipated Parliament debate of the Eswatini National Pension Fund(ENPF) Bill.
The PSPF Management and some Board members recently met Members of Parliament(MPs) at Hilton Hotel-Mbabane to communicate their side and/or concerns regarding the proposed conversion of the Provident Fund into a Pension Fund.
“As Cabinet we must listen to both the PSPF and ENPF and the Prime Minister is wrong to take sides”, said a Cabinet Minister.
But the leaked confidential document further suggests that, “the PSPF is not entirely against the proposed new Pension Fund” but, merely concerned about the inclusion of civil servants as that will collapse the PSPF.
“While including public servants may be beneficial for pooling resources and expanding the ENPF member base, the numbers may not be as significant as anticipated. ENPF membership is around 140,000 compared to the civil service at 42,000. Out of the total civil servants, slightly over half are eligible to join the proposed ENPF at inception. The PSPF benefit structure,i.e., the retirement package calculation formula, is actuarially premised on the 20% of basic salary contribution rate. PSPF currently has a funding level (assets/liabilities) at 88% as per the April 2025 Actuarial Valuation Report, thus not financially healthy. The Actuary recommended that the employer injects the E5,1 billion deficit amount or alternatively increase the contribution rate from 20% to 24% to bring the scheme to a fully funded position.Both recommendations cannot be implemented”, reads the document in part, forwarded by Chief Executive Officer(CEO) Masotja Vilakati to the Prime Minister through the Public Service Minister.
As stated in the document, the PSPF CEO further mentioned that, the Pensions Order and the Constitution have clauses that protect pensions rights, thus including civil servants would have to be done without making them worse off, “which is not guaranteed in the ENPF” conversion proposal.
”Inclusion of civil servants in ENPF would come with administrative complexities and double long-term administration costs if the same members were to be in two statutory funds for the same 20% contribution that was previously earmarked for PSPF.The PSPF members (civil servants and pensioners) have outrightly rejected the idea of them joining ENPF,” the PSPF CEO stated.
But the PSPF Chief Executive Officer concluded by pleading with the Prime Minister to be fair and allow the Public Service Pension Fund to present these concerns to Cabinet.
“It would be considered fair for PSPF to present their concerns to Cabinet”, he said in the leaked document.
Acting Government Spokesperson Thabile Mdluli declined to comment about the matter while efforts to reach PSPF CEO Masotja Vilakati proved unsuccessful at the time of compiling this report.
On another note, MPs are highly expected to debate the Eswatini National Provident Fund Bill but, “the PSPF is concerned that, the Bill if passed into law in it’s current form, will collapse the Public Service Pension Fund”.
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