The Government Institutions Pension Fund (GIPF) on Friday urged the working public to remain calm ahead of the final standards and regulations on the Preservation of Retirement Benefits that will be issued under the Financial Institutions and Markets Act of 2021. (FIMA).

The GIPF issued a press release after learning of the recent interest in the proposed mandatory preservation of retirement benefits on social media platforms.

‘A draft regulation proposed under the new Financial Institutions and Markets Act, No. 2 of 2021, calls for active members to keep at least 75 per cent of their retirement benefits if they withdraw early (FIMA). This draft regulation is one of many critical regulations and standards being proposed to put the FIMA into action,’ according to the statement.

It also stated that the GIPF is aware that NAMFISA, as the institution in charge of administering the FIMA (and the regulations and standards that go with it), has begun consultations with various stakeholders on the critical standards and that the GIPF is awaiting feedback from NAMFISA in this regard.

‘In the meantime, the GIPF advises all of its members not to panic because the FIMA is not yet in effect and the proposed regulations and standards have not yet been approved. As a result, the proposed mandatory preservation of retirement benefits is not expected to take effect on or before October 1, 2022. You can be confident that the GIPF will continue to act in the best interests of its members,” it concluded.

Source: The Namibian Press Agency