New law corporatises PIC
Richard Mantu
31 March 2005
The Public Investment Commissioners (PIC), a state-owned institution that manages public servants' pension funds, becomes corporatised under a new law that comes into effect in April.
The Public Investment Corporation Act, replacing the Public Investment Commissioners Act of 1984, will protect the PIC as a legal entity and enable it to operate as a modern, professional, world-class investment manager.
PIC CEO Brian Molefe said the state would remain the sole shareholder of the Public Investment Corporation, which would report to Parliament's standing committee on public accounts, and whose controlling board would be appointed by the minister of finance.
Molefe said the PIC would continue to use its current asset managers - RMB Asset Management, Stanlib, Futuregrowth, Sanlam Investment Management and Old Mutual Asset Management.
The biggest contributors to the PIC's assets are public servants through the Government Employees Pension
Fund (91.29%). The other contributions come from the Compensation Commissioners (3.20%), Associated Institution Pension Fund (2.61%), Unemployment Insurance Fund (1.65%), Guardian Funds (0.65%) and Political Office Bearers Pension Funds (0.13%).
Source: BuaNews
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