Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698079449445.pdf (Seychelles)
Annual Report | 2022 Voluntary Contributions with Seychelles Pension Fund Enjoy the best SAVINGS INTEREST RATES at and improve your spending power when it is mostly needed!

The financial challenges of old age • Managing unexpected health issue • Paying off debts • Keeping up with payments • Covering increased household cost Access all of part of your savings from years onwards!!!!!
55 Opening your voluntary contribution account Click on https://pensionfund.sc/voluntary-contribution/ to; • Calculate how much you could save at the current interest rate • Make voluntary contribution online through the platform or e-Contributions • Download a voluntary contribution form to complete and submit to your payroll officer for monthly salary deduction TABLE OF CONTENTS Chapter 1: Introduction Foreword from Chairman CEO’s Report for 2022 1.1 Highlights 1.2 Corporate Governance 1.3 Management of SPF 1.4 Organisation Structure Chapter 2: The operating environment 2.1 Economic background 2.2 Corporate information Chapter 3: Activities of SPF 3.1 Pension Administration Department 3.2 Investment Department 3.3 CEO’s Secretariat 3.4 Risks & Policies Department 3.5 Finance Department Chapter 4: Report from Chief Internal Audit Chapter 5: Actuarial position Chapter 6: The way forward Chapter 7: Board of Trustees Report and Audited Financial Statements 05 04 06-07 08-09 10 11-13 14 15 17 17 18 20-21 23 23 24-33 35-44 46-45 57-61 62 63 64 65 66 67 68-69 71 72-131 Date: 28th April 2023 Mr. Naadir Hassan Minister for Finance, National Planning and Trade Liberty House P.O.
Box 313 Independence Avenue Victoria Dear Minister Hassan Re: Submission of Annual Report in Accordance with Section 53 of the SPF Act 2005 I have the honour and pleasure to submit to you the 17th Annual report of the Seychelles Pension Fund in accordance with Section 53(5) of the SPF Act 2005, which includes the audited Financial Statements for the year ending 31st December 2022.

As per the normal established procedures, we shall table the report to the National Assembly as required under the same Act.
Yours sincerely Nisreen Abdul Majid (Ms) Chief Executive Officer CHAPTER 1 INTRODUCTION Foreword from Chairman CEO’s Report for 2022 1.1 2022 Highlights 1.2 Corporate Governance 1.3 Management of SPF 1.4 Organisation Structure FOREWORD FROM THE CHAIRMAN It is my pleasure, as Chairman of the SPF Board of Trustees, and in accordance with the SPF Act (2005), to present the 2022 Annual Report.
For the past 17 years, the Seychelles Pension Fund has successfully balanced present-day realities with our multi-generational obligations, and the experience acquired in the process are amongst our most valuable assets as we continue to fulfil our promise to our hardworking Seychellois citizens and those who have since retired.
to global peace and Sadly, as this fiscal 2022 annual report is published, and while the impacts of the Covid-19 pandemic have stabilized in most parts of the world, we now face a grave obstacle the Russia-Ukraine conflict.
The world faces a crossroad in international relations, and the new global risks caused by this war and other geopolitical conflicts bring about supply chain disruptions, trade tensions, rising inflation, higher energy and food prices, let alone uncertainty and instability in investment strategies and portfolios.
security in And it is precisely during such unprecedented times that the long-term strategy guiding SPF’s investments must continue to prove itself in order to deliver excellent returns that will benefit current and future generations of retirees.

As we navigate the risks and opportunities, we will continue to take a long-term view and maintain focus on generating returns.

The diversification of our portfolio remains a key element of our strategy and a critical ingredient to our success.
We continue to spread our risks across well-balanced asset classes in order to maximize returns while reducing our exposures in specific areas.

In 2022, we started to dispose of legacy assets such as undeveloped land and underperforming properties that brought little or no return this exercise will continue to Fund, and throughout 2023 as we aim rebalance our investment portfolio.
the to There were many positives in 2022, starting with the completion of the Dreamgate Complex at Ile Du Port which was inaugurated by the Seychelles President.

Our audited financial statements will show recorded capital gains from most of our equity holdings, and surplus for the year exceeded SCR 89m while our balance sheet increased in value by some SCR 563m.
At fair value, investments in Seychelles Breweries Limited, Al Salam Bank and Cable & Wireless Seychelles increased by 64.5% from SCR 584m to SCR 961m.

With the listing of Cable & Wireless Seychelles on the local MERJ Stock Exchange in October 2022, SPF’s shares in the company increased in value by 124%, from SCR 294m in 2021 to SCR 660m.
local companies also grew Dividends considerably by 156% from SCR 21m in 2021 to SCR 55m, and SPF is proud of the support it has afforded prudent investments that continue to offer excellent returns to the Fund.

SPF will of course continue to invest locally whenever the right opportunity avails itself.
companies with local from for professionally discharging members for their hard work, their wise counsel and contributions, their respective responsibilities in 2022, and for providing standards of appropriate assurance governance Fund were maintained.

compliance that high and the of The board remains resolute in ensuring that all risks are factored into investment decisions.
As SPF grows in size and complexity, the board’s responsibility for risk culture remains a key priority as proactive risk management underpins our investment strategies.

We are and will continue to advance the organisation’s risk culture with tools and processes to support risk measurement and throughout, and we will continue management to forward-looking and take a generative approach to risk.
higher-level, Much work was done in 2022 to pave the way for important SPF projects that have long been on the drawing board.

In early 2023, SPF will start the long-awaited Pirates Arms project that will return an iconic building to its rightful place, and bring more entertainment and vibrancy to our small capital.

Refurbishment of the Le Chantier Mall will also start in order to uplift the precinct.
Last but not least, an intense digitilisation project will begin in order to serve not only the company’s objectives, but also to ensure that our members have on-demand, updated information at their fingertips.

In conclusion, it has been a challenging year for all concerned and there remains much uncertainty into 2023, especially in respect to growing inflation and the ongoing implications of the Russia-Ukraine conflict.
Despite this backdrop, the fund remains in a stronger position entering fiscal year 2023 and as entrusted stewards, we remain confident that the Fund will continue to perform positively to ensure the plan’s sustainability.

Let me reassure our members that the board the highest standards of good governance to help protect the retirement security of the more than 44,200 members and our 8,135 pensioners.
committed upholding remains to Sincerely, Marc Houareau Chairman – Seychelles Pension Fund Board of Trustees In 2021, SPF paid out SCR 481m in pension benefits, whereas in 2022, this amount increased by 24% to SCR 599m.

Given the increase in the number of retirees and significant improvements in life expectancy, it became evident that SPF needed to address these significant year-on-year increases as such outlays were simply not sustainable.
long-term Following reforms to address the Fund’s sustainability, the SPF Act 2005 was amended in December 2022 to increase the age of retirement from 60 to 65.

To mitigate the impact on potential retirees, SPF introduced a provision for an early retirement mechanism based on a reduction factor for members opting to retire between the ages of 60 to 64 as from January 2023.
Meanwhile, starting the employee contribution rate will also increase from 4 % to be at par with the existing employer contribution of 5%.

from 2nd January 2023, The decisions to enact such increases were not taken lightly, and it is worth noting that such amendments had been proposed by our actuary as far back as 2018.

Nevertheless, they were overdue and necessary to ensure the long-term viability and sustainability of the Fund for decades to come.
On behalf of SPF, I wish to thank our members as well as the Seychelles Government for these their unwavering support fundamental and significant reforms.

in approving I am also encouraged that 9,247 members of the Fund opted to make voluntary contributions towards their account in order to plan for a better retirement.

The Fund continues to pay above market interest rate on these contributions and we will continue to encourage individuals to contribute in order to complement their retirement savings.
I would also like to take this opportunity to thank the CEO, the management and the employees of SPF who have worked diligently throughout the year across the Fund’s comprehensive governance arrangements, to ensure that our members receive an excellent service throughout the year.

Indeed, we experienced some challenges retirement applications.
This was due to the influx of applicants who turned 60 or above who took advantage of the opportunity to retire prior to the amendment in retirement age to 65, and we expect this backlog to normalise in the first quarter of 2023. in processing Furthermore, our entire executive team demonstrated steady commitments and agility in the face of complex changes and operating environment in 2022.
Our board remains confident in the leadership team’s ability to continue executing on the Fund's bold and ambitious strategy, and their dedication and skills continue to serve the best interest of our members under sometimes very difficult circumstances.

A strong, independent board is the foundation of good governance.
In this spirit, I wish to thank our board Annual Report 2022 06 01 Annual Report| 2022 Annual Report| 2022 07 CHIEF EXECUTIVE OFFICER’S REPORT Ensuring The Long-term Financial Security of SPF As the Chief Executive Officer of the Seychelles Pension Fund (SPF) I am delighted to share with you the annual report of SPF for the year 2022 which covers the financial management and performance year 2022. the for The purpose of the Annual Report is to provide information to our members, other interested parties and stakeholders on the management and administration of SPF during the year.
The principal aim of SPF is to provide secured pensions effectively and efficiently administered at the lowest cost to contributing employees.

This requires that SPF should strike a balance between achieving the sustainable pension most contribution rates and the need to exercise prudence and caution in considering its future liabilities.
investments, from its Fund performance Despite the harsh economic challenges and the aftermath of the Covid 19 pandemic, the overall performance of SPF has been encouraging with a total surplus of income over expenditure of SCR 94.8m (surplus before fair value changes and exchange differences) which represents a 105% increase when compared with a surplus of SCR46.3m in 2021. in It mandatory contribution of SCR611m, which is a 43% increase when compared with the sum of SCR 428m collected in 2021. the highest amount collected registered However, the financial security of the Fund is of paramount importance and during the year 2022, the SPF’s total contribution received was SCR 646m as compared with total pension paid of SCR599m that exceeded the total pension payout by SCR47m.
The situation should change in 2023 considering the sustainability measures and reform taking place.

Pension Reform The actuarial valuation of the SPF in 2018 showed that SPF was not sustainable in the long term.

It recommended inter alia the increase of the current rate of pension contribution as early as possible in a phased approach to be completed by July 2022 and that retirement age should be increased to 65 years.
The new Board and management since taking over in February 2021 undertook action to deal with this situation.
After a series of public consultations involving all stakeholders and the support of the Government, the following sustainability measures were approved and came into force: • Increase of pension contribution from 6% to 9% under SI 38 of 2022 (employer 5% and employee 4%) from the 1st April 2022 and to 10% from the 1st January 2023 (5% employer and 5% employee); • Increase in retirement age to 65 years under the Seychelles Pension (Amendment) Act No 30 of 2022 and the Seychelles Pension Fund Retirement Regulations (SI 136 of 2022 with effect from the 1st January 2023; • Introduction of reduced pension factor for early retirement from 60 to 64 years) from the 1st January 2023 under the Seychelles Pension Fund (Benefits) (Amendment) Regu lations (SI.
135 of 2022), Review of formula for indexation of retirement pension under SI 109 of 2021 took effect from 1 January 2022, in the spirit of regulating the benefits being paid out and relieving some pressure on the current contributors.

There is no doubt that these measures should strengthen the financial situation of SPF.

Investments Investment income collected amounted to SCR223m representing a 36% increase from the investment income collected in 2021 SCR163.8m.
The real net return for the year 2022 is13%.

Dividend income has increased from SCR21m in 2021 to SCR 55m in 2022 a remarkable increase of 156% due to dividend received from Cable and Wireless amounting to Seybrew SCR19m and dividend amounting to SCR 26m where a special dividend was declared for the 50th anniversary of Seybrew.

Every effort is being made to ensure that SPF earns dividends on all of its investments.
Currently, some investments are under review to ensure that they earn the much-needed return on investment.

received from The SPF’s net asset value stood at SCR 4 billion as at 31st December 2022 an increase of 16% compared to the 2021 net asset value of SCR3.5billion.During the year 2022, SPF has continued to move in the right direction closer to attain its goal of asset class diversification although it still has a high exposure to the Real Estate Sector.
After much delay since 2018 to start the re-development of Pirates Arms, I am pleased to report that the contract for the project will be awarded soon and construction is expected the second half of 2023.

Refurbishment of Le Chantier Building will also start in 2023 following the fire third and fourth floors of the building.

that caused damage to start the to in Membership Members’ funds continue to increase from SCR1.7billion in 2022 to SCR1.8 billion.
The total registered members as at 31st December 2022 amounted to 44,233 a slight decrease of 0.47% from the 2021 number of 44,441.

The total number of active registered employers with SPF stood at 3,585 representing an increase of 3.37% as compared with the number of 3,468 in 2021.

The active number of self-employed has also continued to increase by 7.38%.

Pension payments SPF paid a total of SCR 599m to beneficiaries in 2022 as compared with SCR481m in 2021.
For the payment of the number of beneficiaries retirement pensions, increased in 2022 from 5,433 to 6,229 in view of the uncertainty regarding the possible increase in retirement age to 65 years.

It is to be noted that out of total recipients of 8,135, retirement beneficiaries accounts for 77% of the total recipients.
Property Management Considerable attention was given to the importance of proper maintenance of SPF investment properties to ensure that they are kept in good state of repair and in keeping with market values.

During the year, the Property Management has a new team leader with experience and the purpose of maintaining efficiency.

The total amount spent in 2022 amounted to SCR23m.


Restructuring SPF underwent a phase of restructuring to re-look at the nature of the business and the need to have committed staff with strong ethical background especially for key positions to move SPF to a higher level and promote a sustainable pension fund.

Emphasis on the new organisation structure is to improve work operations efficiently and provide more productivity.
In pursuit of excellence, the annual team building exercise held in November 2022, was as usual well attended.

It was used to give the opportunity for staff to reconnect with the basics of teamwork in order to enhance the organisation productivity and efficiency.

Customer service The need to ensure confidence in SPF is crucial to improving its image.
We are committed to provide our stakeholders in particular contributors and beneficiaries with the highest standard service.SPF offers a wide range of opportunities to interact with its members including in person-face to face meetings, telephone calls , e-mail contacts through its offices on Mahe, Praslin and La Digue increasing our presence on social media platforms.

in addition to, No doubt, SPF has continuously provided the right information to its members in respect of their rights and entitlements.
This includes information on pension reforms and in respect of reform enquiries making it stronger and will continue to do so.

SPF has continued to maintain high level of transparency through the press, website that has resulted in better understanding and visibility of our so services we provide products and that members can make better choices terms of in their contribution and pension arrangements.
Staff development SPF has an ambitious annual training plan to ensure that in the all staff and board members with a management and governance of the Fund are fully equipped with the knowledge, understanding to discharge the duties and responsibilities allocated to them and build up capacity and efficiency.

role skills and SPF has continuously made use of virtual training methods available in order to help staff members develop their knowledge and skill in pension management and development.
SPF has also embarked on a World Bank (Reserve Advisory and program Management Partnership) which provides technical assistance and training of SPF staff.

through RAMP Conclusion As always, I would like to thank the management team and all the staff of SPF for their contributions and continued support towards the current success of SPF.

As the CEO I am very pleased to form part of such a hardworking and committed team in delivering an ever-improving and leading service for our pension members.
My sincere gratitude goes to the Chairman and the Board of Trustees for their important contributions, trust and continued support during challenging times.

Thank you for a good year of achievement and I look forward to a promising year ahead.

Nisreen Abdul Majid Chief Executive Officer 08 Annual Report| 2022 Annual Report| 2022 09 2022 HIGHLIGHTS A.

Total Net Assets SCR 4.0 Billion (2022) SCR 3.5 Billion (2021) B.
Membership Total Members’ Funds: SCR 1.8 Billion (2022) SCR 1.7 Billion (2021) Active Members: 44,233 (44,441 in 2021) Total active employers registered with SPF: 3,585 (from 3468 in 2021) New employers: 344 (401 in 2021) Total active self-employed registered with SPF: 2,722 (from 2535 in 2021) New Self Employed:193 (from 158 in 2021) C. Contributions Spouse Pension: SCR 33 million paid to 702 beneficiaries (SCR 28 million to 627 in 2021) Children Pension: SCR 7 million paid to 213 beneficiaries (SCR 6 million to 204 in 2021) Dependent with severe disability: SCR 0.02 million (SCR 0.02 million paid to 1 beneficiary in 2021) Others: SCR 5 million - refunds (SCR 5 million in 2021) Voluntary Contribution refund (55years+): SCR 18 million (SCR 14 million in 2021) E. Default cases of employers 356 cases (274 in 2021) Average occupancy rate of all SPF properties for the year is 92% (95.3% in 2021) Real Estate worth SCR 1.6 billion (at market value) (SCR 1.6 billion in 2021) G. Surplus Excess contributions over pension and benefits paid: SCR 47 million (SCR -14 million in 2021) Excess of gross investment income without fair value and exchange differences over expenditure: SCR63 million (SCR 45 million in 2021) Total surplus without fair value for 2022: SCR142 million (SCR 32 million in 2021) Amount recovered was:SCR 2.6 million (SCR 1.7 million in 2021) H. Properties Surcharges levied was: SCR 0.9 million (SCR 0.5 million in 2021) 25-properties on Mahé, Praslin, La Digue Mandatory Contributions: SCR 611 million received from 44,233 contributors (SCR 428 million from 44,441 in 2021) Voluntary Contributions: SCR 35 million received from 9247 contributors (SCR 39 million from 9296 in 2021) Total Contributions: SCR 646 million (SCR 467 million in 2021) D. Pension and Benefits Total Pension and Benefits: SCR 599 million paid to 8,135 beneficiaries (SCR 481 million to 7194 in 2021) Retirement pension (including voluntary): SCR 467 million paid to 6,229 beneficiaries (SCR 370 million to 5433 in 2021) Permanent Incapacity
 pension: SCR 65 million paid to 990 beneficiaries (SCR 58 million to 929 in 2021) F. Investments Gross investment income without fair value and exchange differences: SCR 192 million (SCR 163 million in 2021) Gross investment income with fair value and exchange differences: SCR 575 million (SCR 130 million in 2021) Total expenditure for investments (excluding administrative expenses): SCR 25 million (SCR 24 million in 2021) Nominal return for 2022: 15% (3% in 2021) Real Rate of return for 2022 on all investments: 13% (-7% in 2021) Investment income without fair value represented 23% of total revenue of SPF (26% in 2021) Property maintenance expenses: SCR 23 million (23% of income) (SCR 22 million in 2021 - 23% of income) 1-being developed 1-to be developed Income from rentals: SCR 98 million (SCR 94 million in 2021) I.
Projects 3-Ongoing projects Le Chantier Refurbishment Ex-Pirates Arms development Renovation Praslin Holiday home J.
Staffing SPF Workforce: 129 (2% increase from 126 in 2021) 16 Vacancies filled 10.32 % Staff Turnover (5.56% in 2021) Training 100% staff underwent some form of training during the year K. Administrative Expenses Administrative Expenses: SCR 51 million (from SCR 44 million in 2021) 10 Annual Report| 2022 1.2 | CORPORATE GOVERNANCE 1.2.1SPF BOARD OF TRUSTEES Seychelles Pension Fund is governed by a Board of Trustees, which provides strategic direction and advice to the Management of SPF .
The current Board’s appointment took effect from 1st February 2021 and is for a period of three years.

In 2022 the composition was as below: Mr Marc Houareau Chairman Mr Patrick Payet Member Ms Elsie Morel Member Ms Brenda Morin Member Ms Jovinella Rath Member Ms Shannon Jolicoeur Member Ms Shella Mohideen Member Mr Jose St. Ange Member Ms Sarah Lang Member Annual Report| 2022 11 A total of 10 meetings were held during the year 2022 of which 2 meetings were conducted virtually.
Two of those meetings were extraordinary ones.
Attendance was as follows: Mr Marc Houareau Mr Patrick Payet Ms Elsie Morel Ms Brenda Morin Ms Jovinella Rath Ms Shannon Jolicoeur Ms Shella Mohideen Mr Jose St. Ange Ms Sarah Lang Attended Chairman 10/10 Member 10/10 Member 10 /10 Member 9/10 Member 9/10 Member 9/10 Member 7/10 Member 8/10 Member 6/10 Ms Nisreen Abdul Majid CEO 10/10 Mrs Audrey Nanon GM Corporate Strategy 4/10 Ms Margaret Moumou Secretary 9/10 Ms Maylene Spiro Alternate Secretary 1/10 1.2.2 BOARD COMMITTEES The Board of Trustees comprises of three committees; 1.
Finance and Investment Committee (Two meetings were held in 2022) 2.

Audit and Risk Committee (Five meetings were held in 2022) 3.

Remuneration Committee (Two meetings were held in 2022) In addition to the above, there are also four independent committees assisting the Board and Management: Independent committee assisting the Board and Management a.
Tender and Evaluation Committee Assesses all tenders of SPF’s projects and makes recommendations to the Board The members of the Tender Evaluation Committee were as follows: Mr. Jean Weeling-Lee Chairperson – (Resigned 16.02.2022) Mr. Mike Laval Mr. Jean Rassool Mr. Stephen Rousseau Mrs. Fanette Albert Mr. Vincent Adam Member Member Member Member Secretary (SPF) 12 Annual Report| 2022 Two Tender Evaluation Committee meetings were held in 2022. b.
Tender Review Panel Attends to all appeals from tenders done by SPF.

In 2022, five new members were appointed to the Tender Review panel for a period of 3 years effective 1st February 2022.

One Tender Review Panel meeting was held in 2022.


The members of the Tender Review Panel were as follows: Mrs. Marie Nella Fred Mrs. Chantal Havelock Mr. Keith Arnephy Mr. Peter Hoffman Mr. Oswald Tirant Ms. Theresette Marie c. Medical Board Chairperson Member Member Member Member Secretary (SPF) The Medical Board reviews all applications for Permanent Incapacity' pension and "Adult Dependent with Severe Disability" pension.

It comprises of medical practitioners both from the private and public sectors.
526 cases were referred to the Board for the year 2022 and 12 Medical Board meetings were held.

The members of the Medical Board were as follows: Dr. Meggy Louange Dr. Vanessa Lesperance Dr. Henry Telemaque Dr. Miodrag Todorovic Ms. Beccy Farabeau Chairperson Member Member Member Secretary d. Appeals Committee of the Medical Board An Appeals Committee of the Medical Board was set up in 2019 to review appeals cases and in capacity pension applications.
The composition of the Appeals Committee was as follows: Dr Kenneth Henriette Dr Daniella Malulu Dr Sethu Chetty Ms Beccy Farabeau Chairperson Member Member Secretary Annual Report| 2022 13 1.3 | MANAGEMENT OF SPF The Seychelles Pension Fund is headed by a Chief Executive Officer, appointed by the President.

This role has been occupied by Ms. Nisreen Abdul Majid since February 2021.

The CEO is assisted by a management team as shown below.
Name Designation Ms Nisreen Abdul Majid CEO Date joined SPF 01 February 2021 Mrs Audrey Nanon GM Corporate Strategy 01 February 2017 Mr Jeffrey Moses Chief Pension Administration 01 May 1999 Mr Davis Laporte Chief Investment Officer 15 July 2019 Mrs Menatie Verghese Chief Finance Officer 02 March 2020 Ms Evelina Antha Chief Risk & Policies Officer 17 November 2022 Ms Vanessa Chang-Lam Chief Internal Audit Ms Marlene Khan Head of Properties 01 April 2022 27 April 2022 Ms Jane Suzette Head of Enforcement and Processing 01 May 2010 Ms Theresette Marie Head, Investment Analysis 21 June 2010 Mr Steven Rosalie Head of Information Technology 01 May 2013 Mr Evans Mondon Financial Controller 01 April 1993 Mrs Lyne Bonte Head of HR and Administration 01 September 2005 Mr Darell Bristol Head of Corporate Communications 01 October 2004 Ms Maylene Spiro Head of Risk Management 01 September 2015 Mrs Magalie Essack Head of Business Development 01 August 2022 Mr Vincent Adam Head of Project 01 June 2009 Ms Celine Pool Manager, Enforcement 26 November 2007 Mrs Tessy Poris Manager, Inner Islands 18 April 2006 Mrs Lyn Moustache Quality Assurance Analyst 19 February 2007 Mr Pedro Eugenie Manager, Property 16 August 2022 Mr Nicholas Etienne Manager, Customer Relations 12 January 1998 Mrs Chantal Roselie Manager, Benefit 10 October 2005 Mr Christopher Nicette Manager, Project 01 November 2017 Ms Mandy Payet Manager, Processing 01 January 2006 Mr Adrian Pillay Manager, Audit 04 September 2017 Ms Peggy Lucas Manager, HR and Administration 01 April 2014 Mr Marius Esparon Manager, Risk 17 November 2014 Mrs Nane William Manager, IT 18 October 2004 Mr. Paul Morel Manager, Portfolio Management 25 May 2020 14 Annual Report| 2022 1.3.1 | MANAGEMENT COMMITTEES A total of 10 meetings were held during the year 2022 of which 2 meetings were conducted virtually.


Two of those meetings were extraordinary ones.

Attendance was as follows: Two of those meetings were extraordinary ones.

Attendance was as follows: a.

Management Investment Committee The Management Investment Committee meets every month or as required and is the forum for anything relating to investments and projects where they are initially screened and recommended to the Board.

b.
b.

Procurement Committee The Procurement Committee was established to ensure compliance with SPF’s procurement policy.

The committee ensures that the most competitive procurements are always made.

Procurement committee is made up of the Chief Executive Officer, Chief Pension Administrator, Chief Investment Officer, Chief Finance Officer, and Head of Human Resource and Administration.

c. Disciplinary Committee This Committee deals with all unethical work practices and disciplinary issues of SPF staff.
The Head of Human Resource and Administration is the Chairperson of the committee and is assisted by Chief Risks and Policies Officer, Chief Investment Officer, Manager Benefit and Manager Human Resource and Administration.

d. Risk Management Executive Committee The Committee was established in 2022 to oversee and ensure the efficient and effective management of material risks to the operations of SPF.
It is also charged with the responsibility of establishing, maintain- ing and reviewing procedures at management and operational level to monitor risks in accordance with risk oversight and management policies.

The Chief Risk and Policies Officer is the Chairperson of the Committee and is assisted by the Chief Executive Officer, Chief Finance Officer, Chief Investment Officer, Chief Pension Administrator, Head of Risks, Manager Risks and the Assistant Quality Assurance Analyst.
The Chief of Internal Audit attends all meetings of the Committee.
Organisation Structure of SPF Board of Trustees Remuneration Committee Finance & Investment Committee Chief Executive Officer Audit & Risk Committee Internal Audit Legal & Compliance Information Technology Human Resources & Administraion Corporate Communication Investment Pension Administration Finance Risk & Policies & Annual Report| 2022 15 CHAPTER 2 THE OPERATING ENVIRONMENT 2.1 Economic Background 2.2 Corporate Information 2.1 ECONOMIC BACKGROUND The lingering effects of the pandemic and the geopolitical tension between Russia and Ukraine have dimmed the prospects of a strong post-pandemic recovery of the global economy.
There have been concerns of these effects on the domestic economy.

However, the country’s strong performance in the tourism industry has provided the much-needed support for a bounce back of the economy.

This is also evident in the improvement of the employment rate, which has provided some relief over concerns on SPF pension’s contribution trajectory and long-term sustainability.

The conflict between Russia and Ukraine introduced notable disruptions in global trade and supply chains since its onset.
These were coupled by bouts of fuel price shocks in 2022.

Of note, domestic prices of Gasoil and Gasoline in June 2022 peaked to SCR25.61/L and SCR25.20/L respectively.

These conditions contributed to higher inflation rates in emerging and advanced economies.

A remedial approach adopted by authorities globally was a tighter monetary policy stance, which in turn dampened global financing conditions and caused economic activities to either depress or remain stagnant across many economies.
The Eurozone has been particularly affected, with a looming recession being projected in 2023.

As one of the main trade partners of Seychelles and one of the country’s main tourist hub, it is expected that the economic challenges of the Eurozone may have adverse spill-over consequences domestically.

Despite these uncertainties, a total of 332,068 travelers visited the country by the close of 2022, surpassing the previous year’s figures by 82 per cent.
The European market remained the country’s main tourism market, accounting for 73% of the total arrivals in 2022.

The good performance was particularly reflected in an increase in tourism earnings, which enhanced activity in the foreign exchange market and a strengthening of the local currency against the three main currencies (USD, Euro and GBP).
On the side of domestic inflation figures, the year-on-year rate stood at 2.53% while the 12-month average level was 2.63%; which were significantly lower compared to figures reported in 2021.

According to Fitch Ratings, the prospects of sustained growth reduced external borrowing as well as strengthening of the exchange rate, all contributed to an upgrade of Seychelles’ Long-term foreign currency issuer Default Rating (LTFC IDR) from 'B+' to 'BB-'.
Moreover, it was revealed that Seychelles is on track to reduce its Debt-to-GDP ratio to around 56% by the end of 2024 after it peaked at 92.2 in 2020.

The positive performance of the tourism industry, an observed ease in supply chain restrictions, strength- ening of the Seychelles Rupees and an improved sovereign rating, are all vital in sustaining a favourable investment environment in the country.
SPF expects to benefit from these positive outlooks, both as a long-term investor and on the side of its pension administration activities.

Nonetheless, the strong eco- nomic recovery does not spare the country from being vulnerable to external shocks.

The anticipated recession in the Eurozone remains a threat to the domestic economy, with uncertainties surrounding energy and commodity prices as well as a downtrend in the performance of the tourism industry.
It is therefore important for SPF to operate on the side of caution to support its continued success despite the uncertainties in the global economy.

Sources: Central Bank of Seychelles, Ministry of Finance National Planning Trade and Economic Planning, National Bureau of Statistics, Ministry of Health Seychelles.

18 Annual Report| 2022 To this... and many more memories beyond retirement 2.
2 CORPORATE INFORMATION WHO WE ARE Seychelles Pension Fund (SPF) was established in January 2006, by an Act of Parliament, as an earning replacement mechanism to enable qualifying members to live in basic comfort upon retirement.

SPF operates a Defined Benefit pension system where its members – Seychellois employees, receive a prescribed pension amount as per a formula, upon retirement for life.
It is a ‘Pay-as-you-go’ plan where the workers of today pay for the workers of yesterday and the workers of tomorrow, pays for the workers of today.

WHAT WE DO SPF manages the national pension system of the country.

SPF collects contributions from its members who are Seychellois workers and provides them or their dependents with pensions and / or benefits.
in employment, Seychellois workers are including all workers from the formal sector, both the public and private sector, informal employment, self-employed,part-time and casual workers.
those VISION AUDITORS Office of the Auditor General Block C, Unity House, Victoria BakerTilly Seychelles, 202, Allied Plaza, Francis Rachel Street, Victoria, Mahe Seychelles LAWYERS Olivier Chang Leng Chang Leng & Wong Law Chambers The Link, Ile Du Port Georges & Co Attorneys 226 Eden Plaza Eden Island The Seychelles Pension Fund will be a leader and model among retirement systems, by providing the best its retirement and members.
related benefit package for MISSION The Seychelles Pension Fund is dedicated to manage and secure its funds through prudent investments and innovative methods to pay out the optimum its members.
retirement and related benefits to Out and about in our quest to generate a pension literate population CHAPTER 3 ACTIVITIES OF SPF 3.1 PENSION ADMINISTRATION DEPARTMENT 3.1.1 Enforcement 3.1.2 Processing 3.1.3 Benefit 3.1.4 Inner Islands 3.2 INVESTMENT DEPARTMENT 3.2.1 Investment 3.2.2 Project 3.2.3 Property 3.3 CEO’s SECRETARIAT 3.3.1 Information Technology 3.3.2 Corporate Communications 3.3.3 Human Resources & Administration 3.3.4 Legal & Compliance 3.4 RISK AND POLICIES DEPARTMENT 3.4.1 Risk Management 3.4.2 Business Development 3.5 FINANCE DEPARTMENT 3.1 | PENSION ADMINISTRATION DEPARTMENT The Pension Administration Department is made up of the following sections: a) Enforcement for collection of contributions b) Processing for the updating of members’ accounts c) Benefits for payment of pensions and refunds d) Inner Islands (Praslin and La Digue Offices) to ensure decentralisation and extension of SPF services 3.1.1 | ENFORCEMENT SECTION This section is responsible for the prompt collection of contributions both mandatory and voluntary from the employers and the self-employed and other persons who have voluntarily registered with SPF.
a) Registered members The total registered active membership of SPF for the year 2022 was 44,233 members, a decrease of 0.5% compared to 44,441 in 2021.
Figure 1 : Total Active Members 44,481 44,538 44,587 44,537 44,463 44,366 44,311 44,126 44,056 43,992 44,233 44,072 s r e b m e M e v i t c A f o r e b m u N 44,700 44,600 44,500 44,400 44,300 44,200 44,100 44,000 43,900 43,800 43,700 43,600 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Months 24 Annual Report| 2022 Figure1: Active membership of SPF classified by age group and gender Age group 15-24 2,789 Age group 45-49 2,930 Total 5,635 Total 5,018 Age group 15-24 2,846 Age group 45-49 2,088 Age group 25-29 3,165 Age group 50-54 2,793 Total 5,846 Total 4,818 Age group 25-29 2,681 Age group 50-54 2,025 Age group 30-34 3,178 Age group 55-59 2,670 Total 5,707 Total 4,479 Age group 30-34 2,529 Age group 55-59 1,809 Age group 35-39 3,124 Age group 35-39 2,391 Total 5,515 Age group 60-63 1,032 Percentage Coverage 33% Age group 40-44 3,070 Age group 60-63 743 Age group 40-44 2,227 Total 5,297 Percentage Coverage 63% Over 63 Over 63 69 74 Percentage Coverage 4% Total 1,775 Total 143 Age group 15- over 63 Total: 24,820 Age group 15- over 63 Total: 19,413 Total 44,233 As illustrated in figure 1, 63% of SPF’s members fall within the age range of 15 to 44 years and are thus considered young, meaning they will be contributing to SPF for a period of at least 15 years.
On the other hand, SPF has to ensure that it has sufficient funds to provide future pension for the remaing 37% of its members who would be retiring in 15 years or less, including those who are over 60 years and still in employment.
Annual Report| 2022 25 b) Collection of contributions SPF has an obligation under the SPF ACT 2005 to ensure the prompt collection of contributions from employers / employees/self-employed and allocate these contributions to the member’s accounts accurately and in a timely manner.

The Act also prescribes for the SPF to investigate any issues relating to non-payment of contributions and unregistered employers and employees and to collect arrears with surcharges if necessary.
In addition, the education of employers and employees are also carried out in tandem with these monitoring and compliance activities to encourage compliance.

(i) Mandatory contribution For 2022, a total of SCR 611 million was collected as Mandatory contributions representing an increase of 43% compared to SCR 428 million in 2021.

This growth is a result of the increase in contribution rates effective April 2022.
The total contribution rate applicable for January to March 2022 remained the same as 2021 at a rate of 6% - 3% from the employees and 3% from the employers.

Effective April 2022, the rate increased to a total of 9% -5% employers and 4% employees.

Self-employed persons also contributed 6% of the declared salary or SCR 448, whichever is greatest for the period January to March 2022 and 9% effective April 2022 or SCR672 whichever is greatest.
The mandatory contributions guarantee a monthly pension for life to each pensioner provided that they meet the eligibility criteria, which is a minimum of 10 years of continuous contribution to SPF immediately prior to retirement or an aggregate period of 20 years of contribution prior to retirement.

(ii) Voluntary Contribution The Voluntary Contributions mechanism encourage members to make additional savings towards their retirement by contributing more on a voluntary basis.
The minimum monthly voluntary contribution is SCR 50.

Voluntary Contributions are refunded to members, with interest, when they retire or at the age of 55 years when members can withdraw the full or partial amounts from their voluntary contributions account.

For 2022, a total of SCR 34.1 million was collected as voluntary contributions from 9,247 members, a decrease of 13% compared to SCR 39 million in 2021.
A total of 417 members claimed voluntary contributions at the age of 55 years and above and the total amount paid was SCR 18 million.

c) Match it Scheme SPF has a Match-It Scheme that encourages employers to match, in full or in part, whatever voluntary contributions their employees make.

No new employers joined the scheme in 2022.

However, as at the end of 2022 a total of 15 employers participated in the scheme.
d) Contributions collected for 2022 Table 1 : Comparison of contributions collected over the past two years Years 2021 2022 Details Voluntary Mandatory Contributors 9,296 44,441 Amount SCR’M 39 428 Contributors 9,247 44,233 Amount SCR’M 35 611 Total Contribution SCR'M 467 646 26 Annual Report| 2022 Figure 3: Contributions collected for 2022 Employees Voluntary Contributions SCR24m Employers Voluntary Contributions SCR11m Employers Compulsory Contributions SCR333m Employees Compulsory Contributions SCR277m e) Recovery of unpaid contributions A total 356 assessments cases were made against employers in default of contributions in 2022 and a sum of SCR2.6 million was recovered as contribution and SCR 0.9 million in surcharges.
f) Total Employers and self employed New Employers registration decreased and new self-employed registrations increased in 2022, by 14% and 22% respectively compared to 2021.

A total of 222 employers were coded as cease/inactive for the year, a decrease of 44% compared to 2021.

(i) Total Employers The total new employers registered in 2022 was 344 compared to 401 in 2021.

At the end of December 2022 the total number of active employers was 3,585 an increase of 3% from 3,468 in 2021.
Table 2: showing total employers for the past five years Years Total 2018 3,120 2019 3,328 2020 3,496 2021 3,468 2022 3,585 Annual Report| 2022 27 (ii) Total Self Employed New self-employed registration for 2022, 193 compared to 158 in 2021.

At the end of December 2022 total active self-employed was 2,722, an increase of 7 % from 2,535 in 2021.
Table 3: showing total self-employed for the last five years Years Total 2018 1,896 2019 2,106 2020 2,357 2021 2,535 2022 2,722 g) New Employers and new self-employed for the last 5 years There has been a decrease in new employers and an increase in new self-employed registration for 2022, as shown in the tables above.
Table 4: showing new employers and new self-employed registered Employers Self Employed/Others 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 314 307 465 401 344 243 220 304 158 193 h) Detection of unregistered employers Throughout 2022, SPF made several spot checks for unregistered employers and followed up on complaints lodged by employees.

In total, 19 Complaints were lodged, an increase of 12% compared to 17 complaints in 2021.

From complaints received, 4 unregistered employers were detected.
The remaining 15 cases were dealt with as queries on missing contributions.
28 Annual Report| 2022 Table 5: Rate of growth in total membership and pensioners of the Seychelles Pension Fund Pensioners Number of Pensioners Rate of Growth Members Active Members 33,505 32,104 32,174 30,166 33,371 35,252 39,461 40,279 38,117 41,787 41,085 42,720 43,561 43,715 42,901 44,441 44,233 Rate of Growth N/A -5.0% 0.0% -6.0% 11.0% 6.0% 12.0% 2.0% -5.0% 10.0% -2.0% 4.0% 1.5% 0.4% -2.0% 3.6% -0.47% Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year Figure 4: Comparison of pensioners with active contributors for the past 5 years Active Members vs Pensioners s r e b m e M e v i t c A f o r e b m u N 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2018 2019 2020 Year 2021 2022 Beneficiaries Active members Members per beneficiary (Right) Annual Report| 2022 29 N/A 91% 51% 37% 25% 21% 17% 15% 13% 12% 17% 15% 12% 8% 10% 11% 13% 9 8 7 6 5 4 3 2 1 0 Table 6: Excess of contributions over pension payments Contribution collected (as per Financial statement) Pension Paid (as per Financial statement) Surplus of contribution (as per Financial statement) 2013 SCR’M 2014 SCR’M 2015 SCR’M 2016 SCR’M 2017 SCR’M 2018 SCR’M 2019 SCR’M 2020 SCR’M 2021 SCR’M 2022 SCR’M 128 184 205 223 270 351 423 460 467 646 65 63 80 104 158 222 286 347 420 481 599 104 101 65 48 65 76 40 -14 47 Figure 5: Comparison of mandatory contributions collected vs. pension payout Contributions v/s Pension 70 60 50 40 30 20 10 0 ) M ’ R C S ( d e t c e l l o c s n o i t u b i r t n o C Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month 2022 Contribution Collected 2022 Pension paid 30 Annual Report| 2022 3.1.2 | PROCESSING SECTION This section is responsible for updating all members account with the prescribed contribution payable by the employers every month.
The crediting of members account is done manually or automatically through the allocation process based on pension report submitted by the employer when remitting the payment.

The Processing section also has the responsibility of updating the employment history of each member.

a) Members’ Accounts An account is maintained with SPF for each registered member.

The account is maintained separately for the respective accounts.
the mandatory and voluntary contributions and is also credited interest the to Members’ Fund stood at SCR1.8 billion in 2022 and represented a 6% increase over 2021 (SCR1.7 billion).

b) Interest for Members’ Accounts Members’ accounts accrued interest on a yearly basis which are added to their contributions.

The interest rate for the year 2022 for Voluntary contributions was 4%.

For Mandatory contributions interest of 2.53% was credited for 2022.

Interest is allocated to only ‘non-vested’ members i.e.
those not qualifying for a pension, and a total of SCR37.5 million was payable as interest to members accounts for 2022, a SCR0.2 million increase compared to 2021 (SCR37.3 million).

The interest rate is based on 12 months average savings rates for mandatory contributions for non-vested members whereas for voluntary contributions it is based on a 12 months average of both the 91- and 365-days Treasury Bills rates.

Both savings and T-Bills are as published on the Central Bank of Seychelles website.
c) Allocation of contributions SPF ensures that the prescribed contributions paid by employers are allocated to each member’s account in a timely manner.

The update was done automatically through XML files for employers in the public Sector, Parastatals and private employers with more than 50 employees.

The payrolls for self-employed and employers with a maximum of 49 employees, were automatically generated by SPF upon payment of contribution and uploaded into their account.
For the year 2022, SPF is once again proud to announce that all contributions paid by employers were allocated to members’ individual accounts.

3.1.3 | BENEFITS SECTION a) Types of pensions and benefits paid 1.

Retirement Pension 2.

Permanent Incapacity Pension 3.

Surviving Spouse’s Pension 4.

Children’s Pension 5.

Dependent adult with severe disabilities Pension 6.
Refunds – Migration and non-qualifying refunds Annual Report| 2022 31 b) Pensions and benefits paid in 2022 SPF paid SCR599 million to 8135 beneficiaries in 2022, representing an increase of 24% in the amount paid and increase of 13% in beneficiaries compared to the year 2021.

For Retirement pension, aged 60 years and above, a total amount of SCR467 million was paid to 6229 retirees, representing an increase of 26% for amount paid and 15% retirees compared to 2021.
An additional SCR21.3 million was also paid as voluntary contribution refund upon retirement and to members attaining 55 years or more.

For Permanent Incapacity pension, a total of SCR65 million was paid out in monthly pensions to 990 beneficiaries, an increase of 6% in beneficiaries and 12 % on amount paid over 2021 Surviving Spouse pension payments was SCR15 million to 300 beneficiaries, which reflected an increase of 6% in beneficiaries and 7% on amount paid over 2021 figures.
Post Surviving Spouse pension paid out was SCR18 million to 402 beneficiaries, which reflected an increase of 16% in beneficiaries and 28% on amount paid over 2021 figures.

Children pension payments was SCR5 million to 152 beneficiaries, which reflected a decrease of 2% in beneficiaries and an increase of 10% on amount paid over 2021 figures.

Post Children pension paid was SCR2 million to 61 beneficiaries, which reflected an increase of 27% in beneficiaries and 100% on amount paid over 2021 figures.
The Dependent person with Severe Disability pension payment was SCR0.02 million and made to one beneficiary.

For lump sum refunds, a total amount of SCR5 million was paid to 298 applicants.

This figure represents an increase of 25% in amount paid compared to 2021 but a decrease of 21% in application for refunds.
Figure 6: Illustrates the pension amount and the number of beneficiaries per benefit type Children’s Pension 1%(SCR 6.5m), 213 Surviving Spouse 6%(SCR 33M), 702 Refunds-Migration & Death before retirement 1%(SCR 5.5m) Refunds voluntary contributions 55 3%(SCR 18m), 417 Voluntary refund at retiment 0.5% (SCR 3m) Permanent Incapacity 11%(SCR 65m), 990 Retirement Pension 78% (SCR 467m), 6,229 32 Annual Report| 2022 Table 7: Details of pensions paid over the last 5 years *Voluntary Contribution are payable from 55 years since 2019.
For previous years, Voluntary Contributions were paid with Retirement Pension Year 2016 2017 2018 2019 2020 2021 2022 Details Beneficiaries Amount paid SCR’m Beneficiaries Amount paid SCR’m Beneficiaries Amount paid SCR’m Beneficiaries Amount paid SCR’m Beneficiaries Amount paid SCR’m Beneficiaries Amount paid SCR’m Beneficiaries Amount paid SCR’m Retirement Pension 3,294 527 337 129 4,287 Permanent Incapacity Surviving Spouse Pension Children’s Pension Dependent with severe disability Refunds Total Voluntary Contribution (refund at Retirement) Voluntary Contribution (refund at 55 years) c) Indexation of pension The indexation is a mechanism used to adjust pensions annually to cater for the rise in the cost of living.
As per Section, 46 (2) of the SPF Act the increase shall take into consideration the percentage growth in the Consumer Price Index for the preceding period of twelve months up to a maximum of 5 per cent.

SPF’s Benefit Regulations 36 requires that the CPI as of 31st October of the previous year be used for indexation.
The CPI as of October 2021, as published by NBS was 8.85% and in accordance to S. I 109 of 2021 of the SPF’s Benefit Regulations, indexation for the year 2022 were as follows: Pension Amount Indexation Minimum Wage and below 100% of CPI Up to 2 times Minimum Wage 75% of CPI Above 2 times - Below 5 times Minimum Wage 50% of CPI Above 5 times up to SCR49,999 25% of CPI Above SCR50,000 No Increase d) Administration of Public Sector Special Pension on behalf of the Government of Seychelles The administration of the Public Sector Special pension on behalf of the government for 72 pensioners continued in 2022 with a total of SCR0.9 million paid and refunded by Government.
In addition, the pension for Seychelles Defence Forces (SDF) personnel also continued to be administered and paid by SPF.

In 2022, a total amount of SCR2.8 million was fully refunded by the government.

3.1.4 | INNER ISLANDS The offices on Praslin & La Digue continues to ensure that SPF is able to successfully reach out to all its members on the islands and to guarantee that services on offer are easily accessible to them.
Both offices are involved in the collection of contributions, the provisions of advisory services and are able to receive and process applications for benefits whilst the payments of pensions and benefits are administered directly from the SPF Head Office.

There are 410 active registered employers on Praslin an increase of 12% from 365 in 2021 and 222 active registered self-employed an increase of 16% from 192 in 2021.
Whereas on La Digue there were182 active registered employers an increase of 0.6% from 172 in 2021 and 71 active registered self-employed an increase of 6% from 67 in 2021.

During the year 2022, the Inner Island office registered a total of 183 benefit applications.
Annual Report| 2022 33 New projects, new milestones, new targets, same ambition – a financially secured retirement for all 3.2 | INVESTMENT DEPARTMENT The Investment Department comprises of three sections: i) Investment section - initiates and implements investment decisions as well as manage investments funds; ii) Project section responsible for the implementation of SPF's real estate projects iii) Property Management section responsible for the management of all SPF's real estates 3.2.1 | INVESTMENT SECTION a) Overview SPF managed to improve its year-on-year investment performance in 2022, despite the lingering uncer- tainties of the global pandemic and the Russia-Ukraine war on the global economy.
The institution recorded a real investment return of 13% for the year, which outperformed both the real return target of 3% and the real return of -7% recorded for 2021.

The good performance was sourced from a combination of multiple factors.

Notably, Cable & Wireless Seychelles (CWS), which is SPF’s largest equity holding, was listed on the MERJ Exchange in the third quarter of 2022.
The event’s aftermath resulted in a significant capital gain of SCR 366 million or 124% for the asset holding and also increased the overall liquidity of SPF’s investment portfolio (the Portfolio).

These aligned well with the institution’s long-term portfolio diversification and liquidity management objectives.

Prior to being listed, CWS approved a 1:4 share split, which allowed SPF to maintain its original shareholding of 22% in the company.
A significant increase in dividend income was also recorded for the financial year, faring 156% higher than that for 2021.

This rebound in Equities’ performance follows a strong recovery of the domestic economy from the pandemic.

A more active approach towards liquidity reserves management was also adopted during the year, which improved short-term investment returns and efficiency.
This involved adopting a reserves coverage of 1.5 months’ worth of institution-wide working capital requirements as cash and a further 1.5 months of reserves for similar coverage as cash equivalents.

The new approach is compared to the practice of previous years of maintaining reserves solely as cash and providing 4 months’ coverage for future benefit payments only.
Notwithstanding the strong performance of the tourism industry and strengthening of the local currency during 2022, the institution observed a slight drop in value of its foreign currency assets.
b) Asset allocation Figure 1: Asset allocation Real Estate SCR 1,635m 41% Cash & cash equivalents SCR 363m 9% Domestic fixed income SCR 662m 17% Telecommunication 16.70% Financial Instruments 8.96% Breweries 6.96% Bank 24.64% Emerging market equity SCR 272m 7% Domestic Equity SCR 1020m 26% Commercial 37.45% Insurance 0.94% Residential 2.91% Tourism 1.01% Annual Report| 2022 35 The Portfolio is made up of 5 asset classes which spans across 9 different sector classifications.
By the end of 2022, it was valued at SCR 3.95 billion, which represents an increase of 17% in its size, from SCR 3.39 billion recorded for 2021.

Despite a year-on-year reduction of 6% in Real estate allocation in 2022, the sector remained SPF’s largest pool of investments, accounting for 41% of the Portfolio.

This was caused primarily by the passive portfolio rebalancing which occurred as a consequence of the capital gains from CWS upon going public.
Nevertheless, SPF continued its pursuit to achieve its target asset allocation throughout the year, which involved purchasing 19 additional shares in Africa Export-Import Bank (Afreximbank) for the value of USD 334,085 (being 40% paid-in capital) as well as its efforts to dispose some earmarked properties.
Table 1: Asset allocation Asset Class Allocation December 2020 Allocation December 2021 Allocation December 2022 Allocation Target Allocation Bond Cash and Cash Equivalents Fixed Income Equity (listed & unlisted) Real Estate 5% 23% 26% 47% 10% 16% 27% 47% 9% 17% 33% 41% 5% 25% 29% 40% 4%-6% 10%-35 0%-55% 0%-60% c) Investment Performance The Portfolio reported a real return of 13%, which outperformed the Investment Policy’s long-term real return target of 3%.
In turn, the 12-month volatility of the Portfolio’s return was 9% versus the target of 12% (band +/-2%).

The Portfolio’s performance was largely influenced by the CWS listing, where the total value of the investment increased by 124% as at year-end of 2022.

However, the positive performance was slightly dampened by foreign exchange losses.
Table 2: Investment Performance Asset Class Cash and Cash Equivalents Fixed Income Equity (listed & unlisted) Real Estate Overall performance (Real Return) 2020 52% 6% 2% 5% 5% d) Share of total revenue 2021 -7% 4% 5% 4% -7% 2022 -1% 5% 45% 6% 13% Long term target performance (net of fees) p.a per IP CPI+1%=3.63% 6% 8% 3% Overall, the total revenue for the year stood at SCR 838 million, comprising of SCR 192 million (23%) sourced from investment income and SCR 646 million (77%) from pension contributions.
This compares to the SCR 630 million of total revenue recorded in 2021.

The figures represent an increase of SCR 29 million in investment income and SCR179 million in pension contributions.

The large increase in revenue from pension contributions was largely due to changes in the contribution rate, which came into effect as from April 2022.
36 Annual Report| 2022 Figure 2: Investment Income as a share of total revenue Investment Income 23% Pension contributions 77% e) Total investment income Gross investment income recorded (excluding foreign exchange and fair value changes) for the year was SCR 192 million, which represents an 18% increase relative to the level of SCR 163 million reported in 2021.
Similarly, net investment income (excluding foreign exchange and fair value changes) in 2022 increased to SCR 169 million from SCR 141 million in 2021.

This derived mainly from improvements in the global economy, where most of SPF investments have returned profits.

After considering the effects of fair value and foreign exchange fluctuations, the value of net investment income for 2022 stood at SCR 533 million, with fair value gains of SCR 383 million and foreign exchange losses of SCR19 million.
Figure 3: Total Investment Income 199 189 191 172 163 n o i l l i M R C S 55 50 42 45 47 39 21 22 21 15 115 118 114 94 98 Dividend Interest Rent 18 0 0 0.3 (1) Realised gain/loss Total 2018 2019 2020 2021 2022 Annual Report| 2022 37 f) Real Estate SPF’s Real Estate assets carried a value of SCR 1,635 million at the end of 2022, which represented an allocation of 41% in the Portfolio.
To note, gross rental income levelled at SCR 98 million in 2022 representing an increase of SCR 4 million relative to the preceding year.

On the side of property manage- ment expenses, SCR 23 million was recorded for the year which corresponds a year-on-year increase of 5%.

g) Fixed Income SPF’s Fixed Income asset class consists of a Government loan, Treasury securities, Government-Agency securities and long-term deposits with domestic commercial banks.
By close of the year, the Portfolio’s allocation of Fixed Income was 17% and had a carrying value of SCR 662 million.

This signified an increase of 21% relative to the SCR 548 million recorded in 2021.

Total interest income collected from the asset class in 2022 was SCR 39 million, which represents a reduction of 18% compared to 2021.

This was largely influenced by an observed decline in market interest rates.
h) Equity The market value for SPF’s Domestic Equity investments was SCR 1,020 million by the close of the year, carrying an exposure of 26% in the Portfolio.

The shareholdings spanned across 6 domestic companies, with the size of share ownership as follows: Seychelles Breweries (26%), SACOS (21%), Al Salam Bank of Seychelles (30%), Seychelles Commercial Bank (6%), Central Common Cold Store (10%), and in Cable and Wireless (Seychelles) Ltd (22%).
As for investments in International Equity, the holdings were mostly in unlisted instruments in Emerging markets.

These account for a market value of SCR 272 million, with an exposure of 7% in the Portfolio.

SPF’s shareholdings in these assets are as follows: Afreximbank (0.13%), The Eastern and Southern African Trade and Development bank (TDB) (3.35%), African Financial Corporation (AFC) (0.22%).
In a tactical move during the year, SPF exited its position of 300,000 shares in a listed equity investment; Grit Real Estate Income Group (GRIT), as it was not performing as expected.

Total dividend amassed from both domestic and international equities in 2022 was SCR 55 million, reflecting an increase of 162% from the SCR 21 million of dividend income received in 2021.

38 Annual Report| 2022 3.2.2 | PROJECTS SECTION This section implements projects of SPF once investment decisions have been made.
Ongoing Projects a) Refurbishment of Le Chantier mall After the fire incident that severely damaged the building in 2021, SPF is planning to refurbish the property in the near future.
Situation as at 31st December 2022 The Board of Trustees has approved for a complete refurbishment of the building, which will commence in 2023. b) Commercial Building on Independence Avenue – Ex-Pirates Arms property A new multi-storey commercial building with a modern look, including a feel of the creole architecture has been approved for the Ex-Pirates Arms Property.

The building will comprise of an entertainment block including restaurants, shops, a business hotel and other commercial areas.
The total area for the entire building will be 13,631 square metres.

Situation as at 31th December 2022 SPF is in active discussion with the building’s prospective tenants.

The tender for construction was launched in December 2022.
Consultants and Contractors appointed after tender for the Project • Project Manager: Atvantage Group • Architect: Ekoarkitek • Structural Engineer: F&D Structural Consultants • Quantity Surveyor: Hooloomann Project Services Ltd • Mechanical/Electrical/Plumbing Consultant: APEXIA Annual Report| 2022 39 c) Ile du Port Micro Enterprise Project From inception, the project aimed to cater for the high demand for warehouses and archives in the local market.

The buildings total area is 11,215 m².


The construction contract was awarded to WellPoint Development Pty Ltd. Situation as at 31st December 2022 The project was officially completed in February 2022.

However, SPF only obtained a certificate of partial occupancy rather than full occupancy at the time, as some of the spaces still awaited the approval for change of use from the Seychelles Planning Authority .
The property was officially opened on 27th May 2022, but SPF received approval for change of use on 11th July 2022. the certificate of full occupancy was obtained thereafter.
Consultants and Contractor Involved on the Project • Architect: R & R Architect • Structural Engineer: F&D Structural Consultants • Quantity Surveyor: LQ Consulting • Mechanical Electrical and Plumbing Consultant: PROBURO • Electrical & Fire Alarm System Contractor: Vijay Construction • Public Health & Fire Alarm System Contractor: Rey & Lenferna (Sey) • HVAC Contractor: Machinery and Equipment • Piling Contractor: United Concrete Products (Seychelles) • Main Building Contractor: WellPoint Development Pty Ltd d) Office alteration at Caravelle House To improve the working environment at SPF, the institution made some investments to improve the office set-up at its headquarter, with the aim to create more space in its existing offices.
Situation as at 31st December 2022 An office alteration work was undertaken by Allied Builders (Seychelles) Ltd in one of the sections, for the amount SCR350,102.82.

The work was completed on 12th August 2022. e) Refurbishment of Praslin Holiday Home The apartments required major refurbishment works before it could be re-opened for business.

To note, the property was previously being used as quarantine site for Covid-19.
Situation as at 31st December 2022 Allied Builders was awarded the tender for the refurbishment project, which should be at a cost of SCR2.4 million.

The works commenced on 17th October 2022 and is on-going.

40 Annual Report| 2022 3.2.3 Property Section a) Introduction The property section manages SPF’s rental properties and its principal responsibility is the timely collec- tion of rental income and the diligent management of maintenance expenses.
SPF has a portfolio of 25 properties of which 18 are generating income through rental to tenants, 2 are under refurbishment, 1 is in the tender stage, 2 are in the ongoing process of disposal and 2 of the properties are undeveloped plots of land.
Table 3: Details of SPF properties NO PROPERTY NAME LOCATION NO OF RENTABLE UNITS % Occupancy Huteau Lane Complex Caravelle House La Clementine Victoria Victoria Baie Ste Anne Praslin Port Glaud Craft Village Port Glaud Providence Micro Enterprise Providence Industrial Estate Providence Warehouse Providence Industrial Estate Pension Complex Praslin Grand Anse Praslin Praslin Holiday Home Grand Anse Praslin Eve Island Enterprise Baie Ste Anne, Praslin Eve Island Cold Storage Baie Ste Anne, Praslin Eve Island Dry Goods store Baie Ste Anne, Praslin La Passe Pension House La Digue Unity House Maison Collet Victoria Victoria Corail D’Or Apartments North East Point, Glacis Continental Complex Ocean Gate House Le Chantier Mall Orion Mall (second floor) Victoria Victoria Victoria Victoria Maison Simone Anse Boileau Pointe au Sel land Ex-Pirates Arms land Dreamgate Complex Parcel No.
LD1556 Parcel No.

V18604 Au Cap Victoria Ile du Port La Digue 5th June Avenue opposite Maison Collet Victoria 44 2 6 1 1 30 54 20 5 1 1 14 145 106 28 25 11 28 17 1 N/A N/A 42 N/A N/A 99 100 90 100 100 99 99 0 90 100 100 92 94 100 20 100 100 N/A 96 100 N/A N/A 45 N/A N/A b) Occupancy Rate The year 2022 has more or less continued to follow the same occupancy trend as 2021.
There was an added uncertainty on the potential disposal of certain properties, namely La Passe Pension House, La Clementine and Corail D’or Apartments.

As a result, several tenants opted to seek alternative accom- modation.

This had a significant impact on the occupancy rate of these properties.
Annual Report| 2022 41 Figure 6: Occupancy rate of SPF Properties as on average during 2022 Count of Properties by% of Occupancy s e i t r e p o r P f o r e b m u N 12 10 8 6 4 2 0 20 90 92 94 96 98 99 100 0 % of Occupancy c) Rent collection Rent collection is directly linked to occupancy rate.

Therefore, the factors that affected occupancy, inevitably affected rental income.
For example: • The unfortunate fire event at Le Chantier Mall in 2021 continued to directly impact SPF’s rental revenue in view that the property is still pending being refurbished • Praslin Holiday Home which is undergoing refurbishment works • Corail D’or Apartments has been earmarked for disposal.

SPF collected a total of SCR98.1 million from its properties in 2022.
During the year 2022, the impact of the Covid 19 pandemic was still reflected in rent collection in view that some tenants continued to struggle to pay their rent on time and some could not meet the repayment plan as agreed.

Despite several challenges, SPF has embarked on an exercise to deal with defaulters and expect to see significant improvement in rent debtors collection moving forward.
Figure 7: Rent collected as at 31st December 2022 Rental Income by Property s n o i l l i m R C S 30.00 25.00 20.00 15.00 10.00 5.00 La Cle m e ntin e P ort Gla u d Craft Villa g e Praslin H olid a y H o m e M aiso n C ollet Ev e Isla n d Enterprise La Dig u e P e nsio n H o use A nse B oile a u M aiso n Sim o n e C ara v elle H o use Pro vid e n c e W are h o use O c e a n G ate H o use O rio n M all U nity H o use Dre a m G ate Pro vid e n c e In d ustrial Estate C o ntin e ntal C o m plex H ute a u La n e C o m plex P e nsio n C o m plex C orail D or Property 42 Annual Report| 2022 Concessions were not awarded in 2022 and emphasis towards the second half of 2022 was for tenants to clear their arrears within the shortest time frame.y Figure 8: Percentage of rental income per property as at 31st December 2022 Percentage of Rental Income By Property Micro Enterprise Properties 2% Praslin Properties 11% Caravelle House 6% Continental Complex 1% Maison Collet 17% Corail Dor 1% Huteau Lane Complex 6% La Digue Pension House 1% Providence Warehouse 4% Dream Gate 7% Orion Mall 4% Ocean Gate House 13% Unity House 27% d) Dream Gate Complex The opening of Dream Gate complex in May 2022, resulted in a new property being added to SPF’s real estate portfolio and made available for rental.
The property comprises of offices, warehouses and archives.

The occupancy rate for the property as at December 2022 stood at 45%.

The second floor of the buildings was originally earmarked for rental to Government Departments and Agencies for archiving of documents.

However, this did not materialise.

Furthermore, SPF had to apply for change of use for several spaces due to changes in tenant’s requirements.

This caused delays for tenants to occupy the premises.
Of note, the Seychelles Land Transport Authority (SLTA) vacated its the office building at SPF’s Huteau Lane property, as at March 2022, to take up office spaces at Dream Gate Complex.

e) Service Delivery and Property/Facilities Management The effects of the pandemic were also felt on SPF’s service delivery.

With less Income received, measures were taken to limit expenses in order to limit the negative impact on returns.

The expense versus income flows by property are summarised below.
Annual Report| 2022 43 Figure 9: Graph illustrating relation between rent income and expenses as at 31st December 2022 Rental Income Vs Property Expenses by property s n o i l l i m R C S 30.00 25.00 20.00 15.00 10.00.
5.0 P e nsio n C o m plex 1 M aiso n C ollet U nity H o use Pro vid e n c e In d ustrial Estate A nse B oile a u M aiso n Sim o n e P e nsio n C o m plex 2 C orail D or Pro vid e n c e W are h o use Dre a m G ate O rio n M all La Cle m e ntin e O c e a n G ate H o use H ute a u La n e C o m plex Praslin H olid a y H o m e P ort Gla u d Craft Villa g e Ev e Isla n d Enterprise La Dig u e P e nsio n H o use C ara v elle H o use C o ntin e ntal C o m plex Property Income Expenses The graph above shows the correlation between Property Management rent income and expenses.
It is an important tool used when reviewing rent charges.
44 Annual Report| 2022 Defying the odds to represent SPF to the best of our abilities in the inter organization sports day Annual Report| 2022 45 3.3 CEO’S SECRETARIAT The CEO’s secretariat is made up of the following sections: • Information Technology • Corporate Communications • Human Resources and Administration • Legal and Compliance 3.3.1 | Information Technology Section For the year 2022, the IT section implemented new plans which aligned with SPF’s business strategy, of staying abreast with new technologies and being proactive.
IT section constantly responded to new developments in the SPF and concentrated on current issues and reactively responded to unforeseen events.

Highlights of some of the accomplishments made by the IT section in the year 2022. a) Help Desk IT supports more users and more devices every year with no increase of the workforce within the section.

The efficiency comes from more proactive desktop management, more efficient support processes, improved training, and better self-service tools.
Ticket Count 1362 Support 1256 Software Modification 106 Response Time 88.4 46 Annual Report| 2022 b) Threat Protection Statistics Inbound Email 183,631 Infected Emails 677 Banned Emails 42 Spam Emails 5480 c) Support by the Numbers DEVICES 208 SITES 6 IT WORKFORCE 6 USERS 111 SOFTWARE DEVELOPMENT 7 Annual Report| 2022 47 Every year, the section’s goals are reviewed to see what was accomplished.

Below is summary of the main projects undertaken in 2022.
NETWORK OPERATIONS The system support team concentrated on infrastructure upgrades with the installation of new PABX SYSTEM.

Proactive maintenance work was conducted on the WIFI network whereby constant and rigorous inspection of the network to eliminate causes of failure.

The PC users were upgraded to laptops because of their portability.

Light weight computing is perfect for those that needs to be mobile.
Infrastructure upgrades continued as we replaced CCTV camera at Oceangate, Maison Collet and Unity House.

These enhancements improved security and network connectivity.

Finally, the active preventative maintenance program continued on a quarterly basis to address any issues and minimize costly unscheduled downtime.

1 2 4 SUPPORT SERVICES Changes is usually driven by innovative thinking which is a requirement in today’s fast-paced environment.
We successfully setup and implemented the IT change management committee.

Its greatest importance is that it provides conceptual scaffolding for people to navigate the processes, and facilitate the change implemention.

An IT audit was carried out by an external auditor which also included a vulnerability assessment to highlight any weaknesses.

IT benefited by this audit since the IT risks identified were mitigated by improved security controls and resource re-allocation.
All staff benefited with the Data Protection Awareness training.

Overall this has increased the credibility of IT functions and processes.

RECORDS MANAGEMENT All files were duly scanned for the Finance, CEO, Corporate Communications, Benefit, Investment, Project and Human Resources and Administration Sections.

All physical records were transferred from Caravelle House to the new Archive at DreamGate complex.

SPF will continue to convert all physical records into electronical format.
3 The system development team continued to work for the rollout of new features, which included Local Purchase the Automation of Standing Order, adjustment of duplicate Order Managements System and the Intranet.

salaries, SYSTEM DEVELOPMENT 48 Annual Report| 2022 3.3.2 | HUMAN RESOURCES & ADMINISTRATION a) Organisation culture The culture at SPF is very open and collaborative where SPF keeps its human resources development in focus with the wellbeing of its employees at all times.
The aim of SPF is to continue to be an “Employer of Choice”; and upkeep a productive working environment along with having people with the right attitude on board.

Organisation structure SPF has four departments and sixteen sections, whereby majority of its key staff have already reached professional level in their respective fields.

There is also a clear succession planning with an annual train- ing plan that provides opportunity for growth and development for all staff members.
As part of its contin- ued effort to obtain optimum efficiency and effectiveness in the work place, the Human Resources & Administration section persist in its effort to promote the right organisation functions in terms of the right staffing, providing a supportive working environment, promoting ethical conduct and strengthening mechanisms for the management and ensuring proper staff development of SPF.

b) Staff turnover For 2022, Staff turnover has increased compared to the previous year.
Percentage turnover recorded for 2022 is at 10.32%.

As at 31st December 2022, staff count was 129 (101 female and 28 male workers) compared to 126 in 2021 representing a percentage increase 2.38% in workforce.
Figure 1: Staff count and resignations for the past 6 years Staff Count 140 120 100 80 60 40 20 0 2017 2018 2019 2020 2021 2022 Staff Count Resignations Annual Report| 2022 49 Figure 2: Staff resignation by section Staff Count vs Resignation by Section 25 20 15 10 5 0 m u nic atio n B e n efit IT In v est m e nt B usin ess D e v elo p m e nt & Le g al C orp orate C o m Fin a n c e H R & A d m inistratio n Enforc e m e nt & Pro c essin g Intern al A u dit In n er Isla n ds Proje ct Pro p erty Risks Se cretariat Staff Count Number of Resignation c) Recruitment As SPF continues to diversify its line of business, the need to build on its work pool with competent and capable staff is imperative to ensure its long-term sustainability.
Positions filled for 2022 has been a result of both creation of new positions, resignations and retirement.

Recruitment has been mainly in the Secretariat, Business Development, Legal & Compliance, Finance, Enforcement, Property, Internal Audit and Human Resources & Administration section.
A total of 16 vacancies have been filled for 2022 as compared to 6 in 2021. d) Training In order to render the organization more effective and efficient in its undertakings, staff training is considered to be vital for staff development and professional growth.

To ensure that this is achieved, a training plan is available.

The training plan is for a period of five years and for the year 2022, the plan has been reviewed based on SPF’s current training needs and availability of funds.
The Reserve Advisory and Management Partnership (RAMP) continues to remain one of our key partners in providing opportunity to build human capital and deliver assets management services.

From January to December 2022, the RAMP program.

Notably for 2022, SPF has again been able to ensure that 100% of the workforce benefitted from both local, workshops, internal and external representations, in-house, short- and long-term management courses.
included both overseas and staff benefitted training which training under 7% of from e) Staff incentives Seychelles Pension Fund continues to provide a wide range of incentives to its staff members which in turn contribute to propel good work performance and maintain a high retention rate: a.
Relevant training b. Flexi-time c. Uniform d. Working from home e. Corporate Rate f. Birthday leave g. Mobile phone facility 50 Annual Report| 2022 f) Team Building and annual staff meeting After a two-year pause due to the COVID-19 pandemic, the Seychelles Pension Fund organised its fourth team bonding activity in 2022 with the Theme “Accountability”, alongside its annual general staff meeting, which was a great success, whereby a participation rate of 78% was recorded.

g) Performance Management.


All staff members are required to identify 4 KPI’s, this enables better assessment of staff individual performance.

The HR system and this performance-based approach have been commended by the World Bank.

In addition, to the reintroduction of the Thirteenth month pay incentive, SPF was able to fully implement the Performance Contract system.
The following parameters are considered in order to maintain an effective and efficient workplace: • Employees having clearly defined objectives • Alignment of the organisation’s goal to the activities • Cost management • Open communication • Yearly reviewing of company’s policies and booklets • Employee appraisal are conducted on a yearly basis • Achievement of key performance indicators (KPIs) to measure performance h) Administrative cost As a result of the nature of our business and the continued increase in activity, the administrative cost continues to augment in order to cope with new developments along with all operations resuming back to normal during the first quarter of the year 2022.
Table 1: Administrative cost Year 2016 2017 2018 2019 2020 2021 2022 1.

Cost per active member (SCR) 942 959 1.010 1,098 1.142 990 1.156 2.

Cost as a % of investment income 26% 24% 25% 25% 25% 27% 27% 3.

Cost as a % of total net assets 1.44% 1.40% 1.44% 1.45% 1.44% 1.26% 1.27% 4.
Cost as a % of total income 10.0% 9.0% 8.0% 8.0% 7.0% 7.0% 6.0% Administrative costs (SCR’M) 39 41 44 48 49 44 51 % Increase in administrative cost 26% 5% 7% 9% 2% -10% 14% Annual Report| 2022 51 3.3.3 | CORPORATE COMMUNICATION SECTION Corporate Communication Section is responsible to develop a framework to promote the SPF brand, minimizes discrepancies with the organization's identity, generates internal and external support and coordinates effectively with stakeholders.
For the first half of the year, prominence has been placed on the proposed changes to the contribution rates and increased retirement age.

To that end the following activities were held to improve stakeholders’ engagement and product knowledge.

a) Section’s targets • mplement strategies to increase membership and revenue for voluntary contributions and increase voluntary contribution revenue from existing members.
• • • Strengthen promotion of the SPF brand through various forms of communication including but not limited to written media and publication, TV/Radio advertisements/spots, outdoor promotions and online communications channels.
internal communication program Enhance internal/external customers are able to connect to employees, relaying relevant and timely information that are critical to the achievement of its corporate goals the management and that Liaise with members of the public in the capacity of Customer relations officers and SPF’s Information Officer.
b) Summary of activities • • • • • • • in interest groups to hold consultative meetings Awareness meetings; Classified stakeholders regardingthe proposed changes in contribution rate and retirement age so as to have a cross sectional perspective given restrictions for public meetings due to Covid 19.
The different groups targeted included SPF’s internal staff, the Citizen Engagement Platform (CEPS), various Labour Unions, Seychelles Chamber of Commerce and Industries (SCCI), Human Resources Managers, Virtual financial education sessions with members of the public who requested, the Youth team at SNYC, Journalists and media houses and the members of the National Assembly.
For the benefits of members whom we could not have direct access to, contents were distributed through the National news papers and 4 episodes of 13 minutes programs each were aired on SBC TV, whilst a question and answer session took place on SBC AM radio.

E-spire- The e-spire service was launched in December 2021 to generate a secondary stream of voluntary contributors run campaigns for Valentine’s day, Mother’s Day and Fathers’ Day.

inspired by existing contributors.


To date we have Customer Service Management System – Developing an in-house computer-based customer service management system to improve the level of customer service organisation-wide.

The system which is still on trial mode aims at keeping a live update on all queries, applications and information lodged by members for ease of reference upon request.
My e-service – Improved the e-statement portal with self-managed and secure features for registration and accessibility to statements at any time required.

Previously all registrations were made through SPF staffs.
Dreamgate Complex - Organized the official opening of ‘Dreamgate Complex’ held on Friday 27th May 2022 and spearheaded an aggressive marketing campaign involving direct mailing, newspaper location targeting both government and private and online poster adverts and posters on entities to attract new tenants to available spaces.

Undertook 36 workplace information sessions, including 6 sessions at post-secondary institutions to introduce the concept of pension and retirement at an early age.
Annual report – Coordinated tenders for graphic designers and Print houses, developed the graphic illustrations and printing requirements for 150 copies and e-copies of 2021 annual report.

52 Annual Report| 2022 • Content development, designing and marketing campaign for 2nd phase property disposal.

• Developed proposal to update the pension calculator page on the website to reflect real-time retirement benefits for members about to retire.
• Develop the ‘prepare for your retirement early’ manual to be implemented to speed up customers’ experience upon applying for retirement.

• • Run a PR campaign to solicit members to participate with photos for the 2023 calendar.

The calendar targeted family as its main theme for the year.

This is to help realign the importance of family as a guiding influence for the various benefits provided by the organisation.
SPF and SRC signed a Memorandum of Understanding to share information to ensure better cohesion in the two organisations operations.

c) Customer Relations Management The section also acts as the liaison function between SPF and its local stakeholders and members.

The section provides advisory services to members, especially with regards to contribution and retirement.

Additionally, the function helps in marketing and updating member’s information in the SPF’s database.
The section received a total of 3900 visitors during the course of 2022.

Most clients’ enquiries were regard- ing benefits and benefit applications.

A total of 2822 (72%) of clients were assisted to that end whilst 552 members enquired about statement of account as the second most sought services.

A total of 3,451 incoming calls were also registered compared to 7,292 registered during the Covid lockdown period.
Other fields of enquiries recorded were for the nomination of beneficiaries, enquiries regarding the e-contribution portal, the e-service portal, and missing contributions.

d) Information Officer In line with the Access to Information Act 2018, the function of Information Officer has been allocated to the Office of the Head of Corporate Communication.

It is responsible for managing and maintaining databases, information catalogues and web resources.
The information officer ensures that the information they manage is safe, secure and easily accessible and provides information updates as per request.

Below is a table of request entertained for 2022.
Table 2 : Request for information Nature of request The number of requests for access received The number of requests for personal information received The number of requests for access granted in full; The number of requests for access refused - in full The number of requests for access refused - in parts The number of times each provision of Part III (EXEMPTIONS) was relied on to refuse access in full or in part; The number of review applications lodged with the head of the information holder 01 02 03 04 05 06 07 1 1 1 0 0 0 0 Annual Report| 2022 53 3.3.4 LEGAL AND COMPLIANCE a) Amendment of the SPF (Benefits) Regulations, 2005 The Section spearheaded the amendment of the SPF (Benefits) Regulations, 2005 which was completed through: 1.
Amendment of the Seychelles Pension Fund (Membership and Contributions) Regulations, which was published on 11th April, 2022, for the increase in contributions in April 2022 and January 2023 2.

Amendment of the Seychelles Pension Fund (Benefits) Regulations, published on 4th April, 2022, to adjust the revised indexation mechanism, as introduced in S.I.

109 of 2021, to address unfairness to 74 pensioners pension as a result of the 2021 revision to the mechanism 3.
Amendment of the Seychelles Pension Fund (Benefits) Regulations S.I.

46 of 2005 under new S.I.

135 of 2022 to provide new definition for retirement age and making provision for a member of SPF serving the Seychelles Defence Forces will now retire at the age of 60 instead of 55 as of January 2023 4.

Amendment of Seychelles Pension Fund (Retirement) Regulations under new S.I.

136 of 2022 to; a.

Increase the retirement age to 65 years of age b.


Allow a member who reaches the age of 60 to 64 years and qualifies for a retirement pension under section 33 of the Act may, apply to receive a retirement pension and shall be legible for indexation c. Make pension amount payable under regulation 3 be based on a reducing factor and pension level factor with effect as of 2nd January 2023 5.
Seychelles Pension Fund Interest Rate was reviewed effective 1st January 2023 to reflect the following (i)1.5% on mandatory contributions; and (ii) 4% on voluntary contributions b) Comprehensive review of the SPF Act and Regulations Since the enactment of the SPF Act and Regulations in 2005, a number of amendments have been made to the legislation to date.
In an attempt to consolidate these legislations, the Section is also spearheading the internal project to comprehensively review the SPF Act and its Regulations.

This process entails reviewing legal aspects of the current law, as well as introducing new procedural measures and pension products to be established in the law.

The full comprehensive review is envisaged to be completed by September 2023 for its implementation by 1st January 2024.
54 Annual Report| 2022 c) Compliance to laws, Regulations, approved policies and procedures Compliance reminders and checks for the implementation of policies and awareness within the organisation continued during the year 2022 to enculturate the compliance culture within SPF.

The section focused on the following; 1.

No Gift Policy, to enculturate the culture of ethical behaviour within the organisation when dealing with stakeholders.

2.
2.

Conflict of Interest policy awareness and reminder session with the Board of Trustees.

3.

Debtors Management procedures were constantly followed to ensure legal action were taken up where necessary.

4.

Follow up on Public Enterprise Monitoring Commission circular, where applicable and relevant to the organisation.
d) Addressing SPF’s legal and compliance issues, including Court cases The Section, with the assistance of external legal counsel in some circumstances, has further developed the services and products of SPF through: a.

Conducting due diligence on bidders to ensure compliance with AML/CFT Act.

b.

Reviewing of contracts and clauses and proposed amendments where necessary.
c. Work closely with the Legal Counsel to ensuring SPF recovers debts from tenants who default on their rent payments through the Rent Board.

d. Support drafting and review of SPF Regulations for submission to the Ministry responsible for Finance for all required amendments.

e. Coordinate liaison with Legal Counsel to ensure payment of benefits to new applicants in the category of dependant (spouse and children) is in line with SPF Act and all documents are in order.
f. Conducting compliance checks to laws and regulations, policies, agreements and contracts when relevant.

g. Onboarded one new Legal Counsel to address SPF’s non-rental debtors, which includes contri butions and staff debtors.
Table 3: Data in regards to court cases at 31st December,2022 Rent Board Magistrate Court Supreme Court Post Judgement Actions Court of Appeal Number of cases 2 2 2 0 1 e) Anti-Money Laundering and Countering the Financing of Terrorism (“AML/CFT”) In accordance with Section 32 (1) of the Anti-Money Laundering and Countering the Financing of Terror- ism (AML/CFT Act), SPF as a reporting entity must take measures to identify, assess, understand and moni- tor its risks of money laundering and terrorism financing activities and take appropriate measures to mitigate the risks identified.
In line with Section 32 (5) of the AML/CFT Act the outcome of the risk assessment is required to be docu- mented and made available to the Financial Intelligence Unit (FIU), as the Supervisory Authority, upon request.
Annual Report| 2022 55 Partner and stakeholder engagement remains a top priority in an ever-evolving pension environment 3.4 RISK AND POLICIES DEPARTMENT The Risk & Policies Department is made up of the following two sections: a) Risk Management for undertaking risk assessments, monitoring, control review, managing risks relating to SPF’s activities, quality assurance and actuarial support.
b) Business Development for the development of policies and guidelines and review existing framework to be in line with best practices and undertake research to enhance SPF’s services.

3.4.1 | RISK MANAGEMENT SECTION Most modern pension systems are equipped with a risk management unit and here at SPF, it is no exception.

SPF recognizes the importance of effective risk management in the course of delivering on its mandate, some risk-taking is inevitable if the organization is to achieve its objectives.
SPF goes to great lengths to protect the public funds entrusted to it and remains committed to establishing a sound system of risk oversight; management and internal controls to identify, assess, monitor and manage risks related to the conduct of its activities to help mitigate the likelihood or impact of such risks materializing, thus allowing the organization to meet including employers, employees, regulators and the broader society.
its obligations to key stakeholders, Additionally, the function ensures SPF meets its obligations related to pension development and reporting requirements as outlined in the SPF Act 2005.

It is also responsible for liaising with the Actuary for the Board and the actuarial valuation or any actuarial maintains international cooperation with international pension bodies.
requested by investigations a) Enterprise Risk Management function SPF follows a risk framework to guide its activities and support a risk-aware culture characterized by robust evaluation and management of risks across the organization.

1.0 Risk Universe SPF is exposed to a wide range of risks of different nature from past, present and future activities that could impact its ability to achieve its objectives, managing those risks is a core part of the day-to-day activities.
The risks are of different types and range from Investment to demographic risks, their impact can be financial and non-financial and are categorised as Strategic and Operational.

2.0 Risk Governance Over the past year, SPF has remained committed to managing risks identified and continued to develop the risk mitigation framework.
Risks are inherent in many of the activities, thus, governance arrangements in place, use of industry best practice and external advisors, ensure that the management of risks is undertaken to the highest levels and that potential adverse effect of risks are minimized.
The principal documents relating to risk management and controls are: • Risk register • Board charter • Audit Committee Charter • Risk Management Policy • Investment Policy • Funding Policy We also include Business Continuity planning and IT disaster recovery in our coordinated approach to risk management.

Annual Report| 2022 57 3.0 Managing our Risks 3.1 SPF Risk Taxonomies The SPF operational risk events have been defined through seven official Basel event types: 1.

Internal Fraud 2.

External Fraud 3.


Employment practices & work place safety 4.

Clients, products, & business practice 5.

Damage to physical assets 6. Business disruption and systems failures 7.

Execution, delivery, & process management The SPF Strategic risk events have been categorised through seven event types: 1.

Financial (incl.

Investment Risks) 2.

Legal & Regulatory 3.

Governance 4.

Market 5.

Environmental and Climate (incl.

Social & Health) 6.

Funding 7.


Stakeholder & Employer Related risk 3.2 Risk register As part of our enterprise risk management approach and in line with international best practices, a detailed Risk Register is maintained by SPF whereby different risks both operational and strategic which could have a material impact on our activities or performance have been identified.

These risks arise from internal events, external events, acts and/or omissions.
The risk register ensures that SPF has a coordinated enterprise-wide approach to identifying, assessing, managing and monitoring risk at a strategic and operational level; that risks are properly understood, and appropriate actions are taken to mitigate them.

Risks identified within the risk register are assigned to ‘risk owners’ and mitigated through planned action by the owners.
The risk register is updated as and when new risks arise and after the risk assessment exercise; this ensures that risks are identified appropriately and are assessed and managed effectively, by evaluating the likelihood of those risks being realized, their impact should they be realised, and how to manage them efficiently, effectively and economically; ensuring correct controls are in place and that they remain relevant.
If medium high to high risks are identified, these are prioritized and reported immediately to Management for prompt intervention.

As at 31st December 2022, the SPF risk register recorded 68 operational and 36 strategic risks (active) and 1 dormant strategic risk.

These risks had the potential to make an adverse difference to our ability to deliver the mission of SPF if they were not managed.
The risks within the register relates to key areas such as Investment, Market, Funding, Information security, Process execution, Demographic and Regulatory; however, the risks being mentioned do not purport to be exhaustive as there are additional risks not mentioned and others that the organization has deemed to be immaterial.
3.3 Risk Assessment As at 31st December 2022 •The operational risk exposure was Medium High •The strategic risk exposure was Medium Low •The overall enterprise risk exposure was Medium 58 Annual Report| 2022 Figure 1 Figure 2 Operational risk exposure 2022 Strategic risk exposure 2022 Low Medium Low Medium High High 3.4 ORM Tool / Key Risk Indicators (KRI’s) The ORM tool was launched in July 2021, it provides a comprehensive platform to anticipate, identify, prioritise, manage and monitor operational risks within each department of SPF through the identification and measurement of Key Risk Indicators (KRIs).
The tool also facilitates the scoring of risks in the main risk register by providing historical data of risk events.

The KRIs which are metrics, provide a forward-looking view of risks whereby their potential impact on business performance can be measured beforehand.

Additionally, if an event occurs, the KRIs allow Management to fully understand what happened, why it happened, the impact of the event, the necessary follow-up action items and the lines of accountability within each section.
For each month the information recorded in the tool is compiled and a detailed report is generated.

b) Actuarial unit function In accordance with the SPF Act, SPF contracted BBL World Actuaries to undertake the actuarial valuation of SPF as at 31st December 2021, to assess the performance and long-term sustainability of the fund.

In 2022, the section coordinated the Actuary’s first mission to SPF for the 2021 valuation.
The Actuary Fund met with the SPF Board and Management including various external stakeholders such as Central Bank of Seychelles (CBS), National Bureau of Statistics (NBS), Agency for Social Protection (ASP), Workers Union representatives, Ministry of Finance, National Planning and Trade and representatives from the Ministry of Health.
Pension Reform As the Actuarial liaison section at SPF, the Risk team played a major role in the implementation of the pension for Finance, National Planning and Tradein his budget address on the 12th November 2021. that were announced by the Minister reforms The Section was actively involved in the organisation’s preparedness for the application of the reforms, including awareness sessions with key stakeholders and to sensitise the general public on the rationale behind the reforms.
Following approval of the bill by the National Assembly in December 2022 the section facilitated several staff trainings on the reforms, including the early retirement reduction factor; a total of 73 staff from different departments benefited from the training enabling them to remain abreast with the reforms and to attend to members’ queries.

Annual Report| 2022 59 c) International cooperation function The section liaises on behalf of SPF with organisations such as ISSA, ILO, and World Bank.
The interaction helps SPF secure much needed training and reference on the latest pension matters.

In 2022, the section has been in close contact with the ISSA liaison officer for southern Africa, keeping the office informed on all the latest developments occurring locally and also liaising with them on various pension matters.

d) Reporting function The section successfully compiled the SPF half year report 2022 which was submitted to the Ministry of Finance, National Planning and Trade.
e) Quality Assurance function The Quality Assurance Unit became operational in June 2018.

It forms part of our system of internal controls and its main function is to mitigate the risk of errors in pension project and some administrative payments, institutional policies and applicable laws/regulations.
through verification of procedures, compliance with The main activities are detailed in the table below Section Details of verifications i) Vetting of all benefit applications from members, either for monthly pension or lumpsum refund, prior to being approved by CEO.

ii) Reconciliation of monthly pension roll and off-roll pension payments.

This includes the indexation of pensions at the beginning of each year, and sampling check on applied interest rate for the year.
iii) Vetting of Minimum Pension Subsidy / Early Retirement / Special Benefits (Home Carer / Self-employed / URS) & Special Payments (Special Entitlement) lists, prior to being claimed from Government.

iv) Vetting of the following posting forms prior to processing payment: lump sum refund, voluntary contribution refund from the age of 55 and voluntary contribution refund for pensioners.
Benefit documents received for verification Total verified in 2022 Applications for monthly pension Applications for lumpsum refund Posting forms for refund of voluntary contribution from the age of 55 Posting forms for refund of voluntary contribution for pensioners Posting forms for lumpsum refund 1,134 286 406 579 298 i) Reconciliation of staff payroll prior to approval for payment.
ii) Vetting of annual gratuity, end of contract payments, gratuity for completion of five years employment, overtime claim forms, resignation / retirement benefits, payment to SRC and SPF deducted as PIT and Pension contributions from staff and any other staff payments that may arise.
iii) Vetting of 13th month salary for the year 2022 Verification of invoices from suppliers / contractors to ensure that procurement procedures have been followed, computations are correct and proper documentation are on file.

A total of 11 documents were received for verification, up to April 2022.

Verification of invoices from service providers, to ensure that procurement procedures have been followed, computations are correct and proper documentation are on file.
A total of 9 documents were received for verification, up to April 2022. s t i f e n e B & R / 60 Annual Report| 2022 3.4.2. BUSINESS DEVELOPMENT The Business Development and Compliance section provides initiatives, strategies, plans, and ideas aimed towards further enhancing the products, services, policies and procedures at SPF whilst ensuring that the SPF’s legal and compliance framework remains robust, updated and in line with legislative changes and in accordance with international best practices taking into consideration the economic and social environment in which SPF operates in.
During 2022, the Section focused on the following activities, namely: a) Memorandum of Understandings and Non-Disclosure Agreements Signing of the Memorandum of Understandings (MOUs) and Non-Disclosure Agreements (NDAs) with Seychelles Revenue Commission (SRC) with the aim of providing a framework between SPF and the entities for better flow of information and information sharing purposes.
b) New Policies New policies approved in 2022 was ‘SPF’s No Gift Policy’ which prohibits SPF employees from accepting any business courtesy offered, such as product discounts or any other benefits from stakeholders.
c) Development of SPF’s services and products through establishing Standard Operating Procedures (SOPs) The Section worked closely with Risk Section to finalise and review the Risk Policy which was reviewed and presented at Committee level with the aim to integrate risk management into the procedures and the day-to-day activities and processes of SPF as well as to promote good practices in governance.
Additionally, the section worked closely with the Human Resources and Administration section to finalise and review the Mobile Phone Policy and Employee Recognition Program, all part of staff incentives for all SPF staff.

The Section continues to work with all units with the aim to ensure that all relevant Policies, SOPs and Guidelines are in place to ensure smooth operations and processes.
Annual Report| 2022 61 3.5 Finance Department The Finance Department is one of the key functions at SPF and is primarily responsible for all the processing and recording of financial activities including reporting.

There are 4 Units within the department: Expenditure, Contribution, Rent & Other Investment and Reporting & Control.
Key elements to achieving the objectives of the department are: Sound fiscal & operational policies • Sound internal control policies and procedures • • Timely & accurate financial reports • Effective use of information technology The main focus remains financial accountability, transparency, consistency as well the promotion of an ethical, reliable and sound accounting system, in line with all relevant accounting standards, policies including SPF’s Acts and regulations.
The finance department oversees the organsational processes at a micro level and these includes: Budget preparation, management and control • • Processing of all non-pension payments • Collection of all pension contributions • Collection of rental income • • Cash flow management • Financial and management reporting • Preparation of year end financial statements • Oversee annual statutory audit process Timely payment of pensions and associated benefits Since SPF is supervised and regulated by PEMC, monthly financial reports are submitted to PEMC along with quarterly results and audited annual financial statements.
The annual report and audited financial statements are also submitted to the Ministry of Finance, and also copies are sent to the National Assembly, as required under SPF Act.
Financial statement compilation, face increasingly complex standards and disclosure requirements and in 2022 the dedicated team has ensured that all the accounts are International Financial Reporting Standards (IFRS) compliant as far as possible and the department is pleased to record that it has com- plied with all such requirements.

The audited financial statements are shown in Chapter 7.

62 Annual Report| 2022 CHAPTER 4 Internal Audit Report from Chief Internal Audit 5.
INTERNAL AUDIT The SPF’s Internal Audit (IA) section provides objective and independent assurance on the adequacy and effectiveness of the Fund’s governance, risk management and control processes.

The IA section reports functionally to the Audit and Risk Committee (ARC) and administratively to the Chief Executive Officer (CEO).

The section is governed by its Internal Audit Charter, which is approved by ARC.
The risk-based audit approach aligns with the Institute of Internal Auditors’ (IIA) and International Professional Practice Framework (IPPF).

For the calendar year 2022, the section comprised of 3 staff, a Chief Internal Audit (recruited in April 2022), an Internal Audit Manager and an Internal Auditor.

Qualifications-wise, the Chief Internal Audit is ACCA/CIA certified and team members are pursuing the CIA accreditation with support from Management.
The team undertook various training both internally and externally to keep abreast of changes and risks faced by the industry.

The training includes; operational risk management, data protection, pension indexation, bid rigging and project management.

The IA section also works in close collaboration with the Risk Management, Legal and Compliance sections to enhance the Fund’s governance practices.
Despite the ongoing realities of the COVID-19, the IA section remained committed to providing objective assurance and consulting activities that add value and provide high-quality services in an accountable, efficient, effective, and ethical manner.
In accordance with the Fund’s business continuity policy, effective methods for onsite and remote auditing were undertaken through work-from-home arrangements, and utilising technological tools such as Onspring audit software, Zoom, emails to allow for the completion of the planned audit activities.

The same methods were utilised whilst undergoing the annual audit of the financial statements.

An outsourced IT audit based on ISO 27002: 2022 was also conducted by the BDO Mauritius team.
Due to travel limitations, for the most part, the audit was performed remotely and was completed within the set deadline.

With the appointment of the Chief Internal Audit, the Audit Plan was revised in June 2022 to review the internal audit processes, resources, capacity development, key performance indicators, and audit activities in line with the IIA-IPPF standards and Quality Assurance Improvement Programme.
To this end, the internal audit activities and additional assignments requested by the CEO and ARC were achieved.

Our general opinion, based on the internal audit engagements conducted, is that the internal control system of the SPF has made continuous improvement.

There is still room for improvement in aligning policies and implementing control processes with best practices standards.
The move towards digitalisation and streamlining processes will render both the Fund’s and the IA’s activities more efficient.

Management have provided their comments to the issues and concerns highlighted and IA continues to follow up on pending management actions, and progress is reported to ARC quarterly, as per the approved Charter and Annual Audit Plan.
The following audits from the Annual Internal Audit Plan 2022 were performed along with other audit inquiries as stipulated by the CEO and the Audit and Risk Committee; 1.

Property Audit 2.

Project Audit 3. Review of Pirates Arms contract payments 4.

5.

Procurement Audit 6.

Human Resources Audit 7.

Finance Audit (Cash Collection).

IT Internal Audit 64 Annual Report| 2022 CHAPTER 5 6.
Actuarial Position Actuarial Position As stipulated by the SPF Act 2005, every 3 years SPF must undertake an actuarial valuation of its assets and liabilities and determine the funding level.

The valuation reviews the financial position, contribution rates payable in future and other actions that should be taken, which are necessary for the sustainability of SPF.
In the last Actuarial valuation undertaken in 2018, SPF was labelled as a “YOLD” pension scheme, young and old, because it’s been only 16 years old since it was established and yet we are calculating and paying pension after considering 44 years.

The last full triennial actuarial valuation of the Seychelles Pension Fund was undertaken in 2022 for the year ending 31st December 2021 the SPF Act by SPF Actuary, from BBL World Actuaries Canada and is ongoing.
in accordance with 66 Annual Report| 2022 CHAPTER 6 Way Forward Way Forward Introduction Going forward, SPF is in the process of modernising the Seychelles Pension Fund Act 2005 which is now over 15 years and as such requires a comprehensive review in order to align it with the other relevant Acts and Regulations.This exercise is also necessary to take into consideration the concerns of the members and beneficiaries whilst considering sustainability and affordability factors.
Investment SPF will continue to pursue its diversification strategy and investments in longer-term assets in order to achieve its return-maximisation objective, as prescribed by the Investment Policy.

It is expected that these would be made possible by investing in new asset classes, such as Commodities, Infrastructure and Private Equity Funds (Alternatives), while also considering the Environment, Social and Governance (ESG) impacts.
During the year, the Board of Trustees approved a revised disposal plan for several of its earmarked Real Estate properties.

In addition, a new plan was put in place for investing in ESG-related Exchange Traded Funds (ETFs).

Due to heightened market volatility in 2022, it is anticipated that onboarding of the ETFs should only materialise in 2023.

SPF also remains committed towards the professional development of its employees within the area of investment management.
The institution, is currently on the second year of its capacity-building mandate with the World Bank, under the Reserves Advisory Management Partnership (RAMP).

Digitilisation A key aspect of helping SPF’s members to build their financial futures is supporting them throughout every step of their journey.

A strategic focus for SPF is harnessing digital technology so our members have relevant, engaging, connected and interactive experiences from the time they register, right through to when they retire.
Digitalisation of SPF’s system will assist to ease the processing of transactions which in return should improve the processing time of applications and financial transactions.These in return will improve customer services and enabling the members and beneficiaries to access their information at their fingertips.
This shall include the use of modern technologies such as online portal and mobile app where members can at their own time access their individual member’s accounts, contribute to their voluntary accounts, access their member balance as well as self-employed members being able to process their contribution payments.
These digital tools will promote a more comprehensive customer database to warrant more personalized communication and services and empower SPF’s members to make more informed financial decisions.

Investing in technology shall not stop with our members as we intend to embark on or journey to streamline and enhance our processes by investing in a suitable accounting software.

We are thoughtful about where we devote our time and resources.
68 Annual Report| 2022 Communication Pension education persists as being one of the leading topics of interest amongst our members and stakeholders.

Over the years, strategies such as ‘Pas kot Fon Pansyon pour en konversasyon’ has brought forth certain degree of success, whilst, on the other hand, a more digitally savvy customer base has emerged combined with a heavily segmented channel of communication – e.g.

viewership of audio visual is no longer commanded by the national television.
Other emerging channels including, but not services are now limited limiting SPF‘s ability to educate members.

With the complexity of technicalities involved with such a set-up, to meet the requirements of a more strategic and robust communication approach.

the 2023 Marketing and Communication Plan has been designed social media, online international streaming services, to tv Risk Management The focus to improve the organisation’s risk culture and enhanced risk monitoring remains a priority for SPF.
The organisation will continue to strengthen its governance structure and risk management framework.

A more detailed insights of the risk landscape will be provided to the Board to allow them to better assist SPF in changing the risk culture.

Moving forward, risk objectives have been included in key performance indicators of all staff, with the aim of reducing the different risk events associated with execution, delivery, and management processes.
All of these measures will assist in achieving a full-fledged culture of risk awareness and risk mitigation.

Conclusion The Pension Reform which took into consideration, the recommendations of the Actuary were fully approved at the end of December 2022 and is aimed to address SPF’s long-term sustainability through collection of more contributions and anticipated reduction in the pace at which benefits payments are increasing.
As we look to the future, we are optimistic about what’s to come and we remain committed to all members and beneficiaries to ensure that they all retire at their comfort and that SPF continues to provide the financial security following their retirement.
Annual Report| 2022 69 Social activities coming together as one CHAPTER 7 Board of Trustees Report and Audited Financial Statements 5972 Annual Report| 2022 Annual Report & Accounts | 2022 Annual Report| 2022 73 74 Annual Report| 2022 Annual Report| 2022 75 76 Annual Report| 2022 Annual Report| 2022 77 78 Annual Report| 2022 Annual Report| 2022 79 80 Annual Report| 2022 Annual Report| 2022 81 82 Annual Report| 2022 Annual Report| 2022 83 84 Annual Report| 2022 Annual Report| 2022 85 86 Annual Report| 2022 Annual Report| 2022 87 88 Annual Report| 2022 Annual Report| 2022 89 90 Annual Report| 2022 Annual Report| 2022 91 92 Annual Report| 2022 Annual Report| 2022 93 94 Annual Report| 2022 Annual Report| 2022 95 96 Annual Report| 2022 Annual Report| 2022 97 98 Annual Report| 2022 Annual Report| 2022 99 100 Annual Report| 2022 Annual Report| 2022 101 102 Annual Report| 2022 Annual Report| 2022 103 104 Annual Report| 2022 Annual Report| 2022 105 106 Annual Report| 2022 Annual Report| 2022 107 108 Annual Report| 2022 Annual Report| 2022 109 110 Annual Report| 2022 Annual Report| 2022 111 112 Annual Report| 2022 Annual Report| 2022 113 114 Annual Report| 2022 Annual Report| 2022 115 64116 Annual Report| 2022 Annual Report & Accounts | 2022 Annual Report| 2022 117 118 Annual Report| 2022 Annual Report| 2022 119 120 Annual Report| 2022 Annual Report| 2022 121 122 Annual Report| 2022 Annual Report| 2022 123 124 Annual Report| 2022 Annual Report| 2022 125 126 Annual Report| 2022 Annual Report| 2022 127 128 Annual Report| 2022 Annual Report| 2022 129 130 Annual Report| 2022 Annual Report| 2022 131 Team building in action