By: Nghiinomenwa Erastus
As more public servants approach their pension custodian, the Government Institutions Pension Fund has been prompted to launch an educational campaign for its members.
Last week, the Fund announced in a statement that it has started with its educational shows on various radio stations until 12 November 2021.
The radio station is Namibian Broadcasting Corporation (NBC) vernacular radio stations, Eagle FM, Shipi FM, and Radio Wave.
The campaign will focus on the Fund’s purpose and functions as a defined benefit fund during November.
The Fund’s members asked to keep updated with the daily schedules on GIPF’s social media platforms.
GIPF manager for marketing services Amos Kambonde explained that during these trying times, “the Fund has seen an influx in pleas from members to access their benefits before retirement for several purposes”.
He said, looking at the number of public servants approaching them to tap on what was supposed to sustain them after retirement and other reasons they decided to engage the members.
Kambonde explained that to ensure that their members are presented with a platform, they can engage the Fund on the laws that guide the Fund and what members can expect.
He highlighted that their educational campaign would educate the members on the contributions to a pension fund, how pension funds are managed and how their pension benefits are protected.
Members will be educated on the allowed deductions for employees and employers.
Moreover, members will be made aware of the prohibition of loans and the housing loans and the Fund home loans scheme to its members.
As a defined benefit pension fund, GIPF has two main mandates.
It provides benefits to members upon retirement and supports the members’ dependents (such as children and spouses) upon the member’s death.
Other benefits include retirement, disability, ill-health, death, and funeral.
Members can also get a withdrawal amount if they resign, get dismissed, or retrenched before their retirement date.
Under the benefits scheme, the benefits of members are guaranteed.
The Fund guarantees a monthly pension for life upon retirement and to deceased members’ spouse(s).
In terms of management oversight, a pension fund such as the GIPF is governed by a Board of Trustees.
Some trustees are appointed by the employer, while employees appoint others via their trade unions which have recognition agreements with the employers.
The board appoints a principal officer or chief executive officer (CEO) who oversees the day-to-day administration of the pension fund.
As a self-administering Fund, the GIPF employs its administrators to assist the CEO.
Regarding occupational funds such as GIPF, employers and employees should pay contributions to the Fund monthly.
For GIPF members, employees contribute 7% of their basic salary while employers contribute 16% of their monthly salary.
In practice, the employer deducts money from the employee’s salary, combines it with the employer’s portion, and pays it over to the GIPF in return for benefits.