- The Eskom Pension and Provident Fund says it has paid out a little over R104 million to its 33,000 members for August.
- It has the money to spare, the fund says, and it hopes to “help alleviate the financial distress caused by the Covid-19 pandemic and the economic impact of the national lockdown”.
- The pension fund pays out bonuses each December, if it can afford them. The coronavirus payment is set at half the 2019 bonus.
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Some 33,000 members of the Eskom Pension and Provident Fund have received special coronavirus payouts in the form of a once-off bonus worth a little over R104 million in total.
It hopes the extra money will “help alleviate the financial distress caused by the Covid-19 pandemic and the economic impact of the national lockdown,” said the fund in a statement.
Households received between R3,500 and R5,425 each, under a formula that provides bigger payouts for lower-income households.
The EPPF is a defined benefit fund, which evaluates its investment performance every year to determine the level of increase in monthly payouts – and the size of a regular December bonus to all members. The Covid-19 payout was set to 50% of the bonuses paid out in December 2019.
At the time the fund’s board warned that “[t]he level of bonuses payable this year has resulted from special considerations and is not likely to be repeated in future.”
But it has the money to make the coronavirus payouts without jeopardising its stability, it says now, and special considerations are once again at play.
“The EPPF has considered that the current crisis may have resulted in the reduction of disposable income in many pensioner households, perhaps due to a loss of livelihood of a household member, or cost increases of food items and additional expenses brought about by the national lockdown,” it told members.
(Compiled by Phillip de Wet)
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