The Government Institutions Pension Fund (GIPF) says the proposed compulsory preservation of retirement benefits under the new Financial Institutions and Markets Act (FIMA) are still to be approved.
“The GIPF cautions all its members to refrain from panic as the FIMA is not yet in force, and the proposed regulations and standards are not yet approved. Thus, the proposed compulsory preservation of retirement benefits is not expected to come into force on or before 1 October 2022,” GIPF’s GM: Marketing and Stakeholders Engagement, Edwin Tjiramba said.
He said the FIMA regulations which will be administered by The Namibia Financial Institutions Supervisory Authority (NAMFISA) are still at the consultation stage, with the fund still awaiting feedback regarding their planned enactment.
“The proposal for active members to preserve at least 75% of their retirement benefits upon early withdrawal is contained in a draft regulation proposed under the new Financial Institutions and Markets Act, No. 2 of 2021 (FIMA). This draft regulation is one of many critical regulations and standards that are being proposed to operationalize the FIMA. The GIPF is aware that NAMFISA, as the institution that will be responsible for administering the FIMA (and the regulations and standards under the FIMA), has commenced consultations with various stakeholders on the critical standards. The GIPF awaits feedback from NAMFISA in this regard,” Tjiramba said.
The long-awaited legislation will replace the existing legislation for non-banking institutions regulated by the NAMFISA and will govern retirement and medical aid funds and their administrators, short- and long-term insurers, collective investment schemes, and asset managers.
The GIPF is a statutory pension fund which provides guaranteed pension and related benefits to over 101 027 civil servants, and employees of participating employers in Namibia.