Pension preservation rules in Shiimi’s hands

A decision on whether Namibia will introduce pension preservation rules under the envisaged Financial Institutions and Markets Act (FIMA) - whose implementation has been pushed beyond the original 1 October 2022 deadline – now rests with finance minister Ipumbu Shiimi. Under the envisaged rules, beneficiaries may only access 25% of their retirement benefits before they reach retirement age.

The remaining 75% will be paid out in monthly instalments upon retirement.

“FIMA will only come into play once a committee the minister appointed has consulted broadly with the Namibian public and recommendations have been made to the minister in terms of that legislation,” Namibia Financial Institutions Supervisory Authority (Namfisa) CEO Kenneth Matomola said yesterday.

“The minister needs to issue that legislation. He might decide not to issue it or he may decide to issue it. Once the minister is done, he will advise in the Government Gazette,” he added.

Shiimi last year appointed a technical committee to consult on the proposed pension preservation rules. It is headed by Manfred Zamuee.

The technical advisory committee on standards and regulations - comprising experts in the financial, labour and pension sectors - has been assembled to ensure that regulations governing financial institutions and markets are robust, fair and conducive to the growth and stability of the financial sector.