… Pension contribution, benefit rules also still pending
Namibia’s long-awaited National Pension Fund (NPF) has missed its 1 April implementation deadline, with key actuarial, legislative and data work still outstanding before the scheme can become operational.
President Netumbo Nandi-Ndaitwah had directed the Social Security Commission (SSC) to implement the NPF and National Medical Benefit Fund (NMBF) by 1 April.
Acting Executive Director for the Department of Labour Relations in the Ministry of Justice and Labour Relations, Aune. Mudjanima, confirmed that the NPF target date had passed, saying the focus must now shift from prolonged deliberations to completing the outstanding work required to establish the Fund.
“The time for extended deliberation has passed. We must now convert the work that has already been undertaken into implementation,” Mudjanima said.
She said the challenge was to ensure the NPF is introduced in a manner that is financially sustainable, legally sound, socially inclusive and trusted by the public.
Among the outstanding processes is an actuarial assessment that will determine how much workers and employers may need to contribute, the level of benefits the Fund can sustainably provide and whether the proposed system will remain financially viable over the long term.
With technical support from the International Labour Organization (ILO) through the Global Accelerator, an international actuary working alongside a Namibian actuary will conduct the financial modelling.
The exercise will assess contribution requirements, sustainable benefit levels, the Fund’s long-term financial position and risks arising from demographic, economic and labour-market changes.
“A pension fund cannot be established on aspiration alone. It must be financially sound, actuarially sustainable and capable of delivering adequate benefits over the long term,” Mudjanima said.
Implementation also requires amendments to the Social Security Commission Act.
Government, the SSC, employers’ organisations and workers’ organisations are working on reforms expected to address institutional mandates, contribution collection and management, benefit administration, governance, accountability and oversight.
Another key process still under way is an assessment of Namibia’s alignment with ILO Convention No. 102 on minimum social security standards.
Government, with ILO technical support, conducted a gap analysis to identify where Namibia complies with the Convention and where legislative, institutional and administrative shortcomings remain.
The findings were validated during a tripartite workshop involving Government, employers and workers in July, with the final report expected next month.
The report is expected to provide an evidence base for identifying remaining policy and legislative gaps ahead of the NPF’s implementation.
Data constraints have also emerged as an issue in determining the eventual structure and sustainability of the Fund.
Although the SSC holds historical contribution records, membership profiles and administrative datasets, gaps remain in information on earnings distribution, labour-market segmentation, employment patterns and pension coverage across sectors and categories of workers.
The Commission is engaging the Government Institutions Pension Fund (GIPF), Namibia Statistics Agency (NSA) and Namibia Financial Institutions Supervisory Authority (NAMFISA) for coded and non-identifiable data to support the actuarial work.
Mudjanima said personal information would not be transferred, with the data instead intended to provide aggregate evidence for policymaking.
The SSC is also preparing to intensify public communication around the proposed Fund amid what Mudjanima described as misinformation, speculation and partial information circulating about the NPF.
An ILO International Training Centre-designed media programme scheduled for mid-October will target government communicators, social partners and journalists as authorities prepare to explain how the pension system is expected to operate.
Key issues still requiring clarity include who will be required to contribute, contribution levels, benefits, how the Fund will be managed and the governance safeguards that will apply.
Mudjanima said Government, workers and employers would continue consultations as the remaining technical and legislative processes are completed.
“We are at an important juncture. Much work has already been done. Significant technical, legislative and institutional processes are underway,” she said.
“What is required now is focus, urgency and execution.”
