The Government Institutions Pension Fund (GIPF) says it has identified approximately 155 members who have unclaimed benefits.
GIPF General Manager of Marketing and Stakeholder Engagemen Edwin Tjiramba says in terms of the GIPF rules, benefits become “unclaimed” when members or beneficiaries fail to claim them for five years after the date on which they become payable.
“The Fund has currently 155 members who have unclaimed benefits due to various reasons, including resignation and other scenarios where the exact benefit type has not been determined,” he said.
He added the term “beneficiaries” refers to the dependents and nominees of a deceased member in case of a death benefit claim. However, death benefit claims do not fall into the category of unclaimed benefits.
Meanwhile, the total value of unclaimed benefits in a defined benefit (DB) pension fund, such as the GIPF, cannot be precisely quantified due to the nature of the Fund.
“In a DB fund, contributions are pooled rather than individualised as is the case of a defined contribution (DC) fund. The benefits in a DB fund are calculated using different formulas depending on the type of benefit such as resignation, ill-health, death, or retirement,” said Tjiramba.
However, if a member does not claim their benefits, the fund cannot determine the reason for exit and whether it was for a resignation, death or retirement and, therefore, the Fund cannot accurately calculate the value of the unclaimed benefit.
Tjiramba noted that some of the challenges include tracing beneficiaries with outdated contact details, incomplete documentation, poor maintenance of personal files by HR offices, and difficulties reaching members who have moved abroad.
To address these issues, “the GIPF conducts regional outreach programmes, collaborates with the Office of the Prime Minister and employers, employs dedicated tracing teams, and runs awareness campaigns through local media and social platforms to encourage members to claim their benefits”.
The Administration of Estates Act, of 1965 mandates that these benefits be transferred to the Guardian’s Fund of the Master of the High Court.
However, the fund encountered challenges in doing so for some members due to incomplete documentation and inadequate data from employers regarding the nature of the members’ exit.
“Despite these challenges, the Fund has decided to transfer the benefits to the Guardian’s Fund based on the available information. Should new information become available, these claims will be reprocessed accordingly,” said Tjiramba.
He also cautioned that the Fund does not appoint agencies or consultants to act on its behalf.
“Members are advised to approach the Fund directly for any information related to their benefits. Members are further cautioned that no fees are payable for services rendered by the GIPF, unlike when using the services of a consultant,” he noted.
This comes as the Ministry of Justice is pushing for the Guardian Fund, currently valued at over N$2 billion, to operate as an autonomous entity.
With a reported balance of N$132.76 million as of 23 July 2024, the Ministry has launched an Expression of Interest for consultancy services to reform the Fund’s governance, legal framework and financial operations.
