‘ENPF Conversion Does Not Threaten PSPF’

The Eswatini National Provident Fund (ENPF) has moved to allay concerns that its planned conversion into a National Pension Fund (NPF) would undermine the Public Service Pensions Fund (PSPF).

ENPF CEO Clarifies

Futhi Tembe, ENPF CEO, assured the public during an Editors Forum engagement that the two funds would continue to operate independently under the proposed reforms.

“The PSPF will remain intact. The proposed conversion does not interfere with its operations or the security of its members’ funds. The National Pension Fund is intended to complement, rather than compete with, existing occupational pension schemes,” Tembe said.

Expanding Social Security

The conversion will see ENPF move from a provident fund to a defined benefit pension scheme, giving members a monthly income post-retirement, alongside a lump sum.

The National Pension Fund will be open to private sector workers, seasonal labourers, and self-employed individuals, while PSPF continues serving civil servants.

“This is about broadening social security, not narrowing it. The intention is to add, not take away,” Tembe emphasised.

Benefits for Members

Tembe explained that members could benefit from both funds without compromising contributions or benefits. The large membership base of the National Pension Fund will reduce administrative costs per member, freeing savings for enhanced benefits.

Addressing Criticism

PSPF management had raised concerns about Clause 107(2) of the bill, suggesting that amendments could reduce contributions and benefits. Tembe dismissed these as misinterpretations, stressing that minimal disruption would occur.

“We are committed to protecting what civil servants have already earned while ensuring others in the country can also secure a dignified retirement,” she added.

Financial Strength & Sustainability

The ENPF’s assets, currently valued at E6.3 billion, provide a strong foundation. Contributions to the new scheme will be collected for at least 15 years before benefits are paid, ensuring a fully funded and sustainable fund from inception.

Cabinet and Royal Backing

The proposed conversion enjoys support from Cabinet and His Majesty King Mswati III, who has endorsed the initiative as a historic transformation of the country’s social security system.

Delays Due to Misconceptions

ENPF General Manager Operations Miccah Nkabinde cited unfounded fears and conflicts of interest as primary reasons for the delay in the conversion. Some private retirement fund administrators feared losing business, which Nkabinde clarified as a misconception.

Contributions to the National Pension Fund would be capped, allowing private schemes to continue managing additional voluntary savings above the cap.

The governance structure will mirror the current tripartite board (employers, employees, government), ensuring accountability and safeguarding against misuse.

Despite previous delays, ENPF is confident that once stakeholders understand the benefits, resistance will weaken, and the reform will succeed.

“If Parliament passes the Eswatini National Pension Fund Bill, the country will join a growing number of African nations moving towards inclusive pension systems — a development that is both overdue and essential,” Nkabinde said.