Namibia Building Workers Pension Fund Now Permits Higher Level Contributions

After having applied for RuleAmendments by the Registrar of Pension Funds undertheauspicesoftheNamibianFinancialInstitutionsSupervisoryAuthority (NAMFISA),theNamibianBuildingWorkerPensionFund(NBWPF)nowallows forhigherlevelmonthlycontributionsfromboththememberandtheemployer, respectively.

Although, the application to seek amendmentofrule4(Contributions) of the

NBWPF's Fund Rules (Consolidated Rules, NBWPF, 1 March 2008) wasapprovedon22Octo- ber 2022 by the Registrar of Pensions, news about positiveimplicationofthe amendmentsisnotwidely spread and the NBWPF aimstoinformitscurrent –aswellasprospectivemembersandemployers about the opportunity the Rule Amendment provides.

Previously, the monthly membercontributionwas restricted to a rate of 4% of his or her salary This hasnowchanged,andthe Rule Amendment allows formembermonthlycontributions that are higher than4%. As such, rule 4.1.1 of the

NBWPF Fund Rules has been changed as follows:

“The member shall contribute monthly to the Fund at a minimum flat rate of 4 per cent of this Fund Salary or such higher specified rate as set out in the Special Rules”.

In addition, rule 4.2.1 of the NBWPF Fund Rules has been changed to ensure at minimum a match between the Employer and Member contributions The change is as follows:

“The Employer shall make a minimum monthly contribution in respect of each Member equalto4percentofthe Member's Fund Salary or such higher specified rate as set out in the SpecialRules.

Mr Enwich Kazondu, principal officer of the NBPWF says: “We are very happy that these amendments have been approved. In this way, contribution from both the employer and the member are not restricted to the minimum, but there is now scope to improve the retirement package of our members.Withthesechanges in place, which no longer restrict the level ofcontribution,employers can improve their employee's remuneration package, by increasing the contribution to the employee's pension fund. Besides contributingtowardsthe employees' long-term social protection, it is also important that employerstakenotethat these contributions are tax deductible expenses fortheirbusinesses. With the change in the levelofcontributionsby both the employer and themember,thescopeis also widened by who would join the pension fund

Mr Kazondu explains: “The amendment speaks to those employers that would like to find a pension fundinourindustrythat looksattheneedsofthe entire spectrum of their employees, across the board. For all so-called categories of employees thereisnowaplacewith us to build their retirement savings “That allowsforastream-lined approach and far easier pension fund administration which is favoured by our contributing employers. At the same time, it will help to further the value of the fund, which currently stands at around NAD 220 million, with 2547 actively paying members. “The NBPWF has embarked on a campaign that is aimed at informing current and prospective employers about the changes and related benefits. As the employing businesses are not required to be only construction businesses,otherprofessions and sectors closely aligned to the construction sector, will be engagedtosharewiththem the opportunities and benefits the fund provides”.