What employees choose to do with their pension upon dismissal, retrenchment or resignation is their prerogative.

This is according to National Unity Democratic Organisation (Nudo) lawmaker, Joseph Kauandenge, who said it is not government’s position to dictate to them how to spend or preserve their money.

The Nudo secretary general (SG) said this while taking a dig at the draft regulations of the proposed 75 per cent pension preservation mooted by the government and Namibia Financial Institutions Supervisory Authority (NAMFISA).

Through the said proposal, members of retirement funds will be required to preserve at least 75 per cent of their minimum individual reserve (fund credit) until the age of 55.

As things stand, the controversial regulation is effective from 01 October 2022.

Responding here last week, former Bank of Namibia governor and current Finance Minister, Ipumbu Shiimi stressed that the regulations were still in their formative state and therefore not final.

Despite this assurance, it has been met with sheer consternation, with many Namibians feeling the government is grabbing their pension funds.

Nudo is not an exception as far as the content and character of the Financial Institutions Amendment Act (FIMA) is concerned, under which the proposed preservation regulation falls.

“It is heartless to say when you resign at 35, you must wait another 20 years of misery and poverty before you can access your hard earned money.”

Kauandenge added: “It is insulting to have [a] few industry bosses who are in any case already well off, sitting in their air-conditioned offices, discussing how best to allocate or preserve pension money for the vast majority [of] black Namibian workers, without workers themselves participating in an issue that has far-reaching consequences on their future.”

Nudo is demanding that the FIMA reverts to Parliament for the lawmakers to debate what he termed draconian and harmful regulations, while NAMFISA on the other hand must look for public input.

Both NAMFISA and the government maintain the regulation is in the public’s interest, as many Namibians have no appetite to save before retirement, which places a burden on the State to sustain them beyond the age of 55.

Source: The Namibian Press Agency