The Public Service Pension Fund (PSPF) CEO, Masotja Vilakati, has firmly expressed the Fund’s position on the proposed Eswatini National Pension Fund (ENPF) Conversion Bill.
Vilakati said PSPF fully supports the transition of the ENPF from a provident fund to a pension fund for its existing members. However, he stressed that they remain opposed to the inclusion of civil servants under the current terms.
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Speaking during the Fund’s sixth annual stakeholder engagement forum at Hilton Garden Inn yesterday, Vilakati highlighted that the core of PSPF’s opposition was both financial and legal.
Government’s Contribution Gap
According to Vilakati, government—unlike all other employers in the country—had indicated it would not contribute additional funds to the new ENPF for civil servants.
He explained that this refusal would force PSPF to reduce existing contributions, a move that would cripple the Fund financially and harm its members legally.
Vilakati warned that transferring new civil servants’ contributions from PSPF to ENPF without government’s new commitment would cause severe financial losses to the civil service pension system.
“Including civil servants and subsequently reducing their PSPF contributions would likely make members worse off than their current position,” he said, adding that this contravenes the Pensions Order of 1993 and the Constitution of the Kingdom of Eswatini.
Legal and Historical Context
Vilakati emphasised that excluding civil servants from ENPF is not a new or radical idea but one rooted in law.
Civil servants were deliberately excluded from ENPF in 1974 because they were already covered under the Pensions Act of 1968, later replaced by the Pensions Order of 1993.
“The current conversion should respect this legal history and maintain that exclusion,” he stated.
PSPF maintained that it is not against national reform, but seeks a model that expands social security without dismantling an existing high-performing scheme.
Support for Conversion—but Not Absorption
The PSPF leadership made it clear that they support the conversion of ENPF, particularly for the private and informal sectors who would benefit from a dignified monthly retirement income.
PSPF Director of Operations, Jethro Ndlangamandla, echoed the CEO:
“We are now infamous for not wanting the conversion to take place, but all we are saying is that they should convert. It is good for the people who do not have a pension. But when you consider taking another Fund’s members, that is no longer conversion but something else.”
He said the real issue lies in the Bill’s unilateral plan to absorb PSPF members and funds.
The Financial Impact
Ndlangamandla revealed that the Bill proposes cutting up to 10% from new civil servants’ PSPF contributions and redirecting it to ENPF.
He warned that this would create a triple threat to PSPF:
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Wounded cashflow
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Strained ability to pay existing pensioners
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Halted future investments
“Our cashflow will be wounded significantly,” he said, explaining that PSPF relies on incoming contributions to pay current pensioners before investing the remainder.
With reduced inflow, PSPF would be forced to liquidate offshore investments to meet obligations. This would immediately compromise PSPF’s ability to maintain or grow domestic investments, affecting its role as a major economic driver.
Ndlangamandla further warned that the Fund would no longer be able to increase pensions, leaving existing retirees with stagnant or reduced buying power.
“The current PSPF retirement benefits are based on a 20% contribution split between employer and employee. If the Bill forces this percentage to change, the benefits will not be the same. This means civil servants will retire worse off than they were promised,” he added.
He concluded that PSPF’s position was not anti-reform, but pro-protection of its members’ rights and benefits.
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