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DISCUSSION PAPER PI-1608

Pension funds evolution, reforms and trends in South Africa

Nthabiseng Moleko and Sylvanus Ikhide

Abstract:


This paper gives a historical perspective of the South African pension fund sector using secondary data and desk review of existing literature.  The paper shows various legislative frameworks passed by the South African government, spurring reforms in the sector.  Providing a descriptive review of the trends of the type and number of funds, total assets under management and legislative reforms provides evidence of the significant developments in the pension fund sector.  Analysis of available data shows the contribution of pension funds to the South African economy, the growth trends in funds contribution and the role of the state controlled Public Investment Corporation (PIC).    The huge growth of pension funds industry, more particularly the PIC rekindles the debate on how the PIC and its share in the sector can be used for driving growth and employment in the economy. 

Keywords:  Pension Funds, South Africa, Historical, and Pension Reforms, Public Investment Corporation