Africa-Press – Namibia.
Finance minister Ericah Shafudah, has assured pension fund members and the public that existing retirement benefit commutation provisions remain unchanged despite the implementation of the Financial Institutions and Markets Act (FIMA).
Making a ministerial statement in the National Assembly on Tuesday, Shafudah said the proposed preservation regulation, which generated public concern during the FIMA reform process, has not yet been implemented.
The proposed regulation would have allowed a person changing jobs before the age of 55 to withdraw only 25% of their retirement savings in cash, while preserving the remaining 75% until retirement age.
“The proposed preservation regulation has not been brought into operation and has been placed on hold pending further refinement and broader stakeholder consultations,” she said.
Shafudah further reassured retirement fund members that current retirement benefit commutation provisions remain in force.
“The existing provisions under the Income Tax Act of 1981, including the entitlement to commute up to one-third of benefits from pension funds, retirement annuity funds and preservation funds as a cash lump sum, as well as the entitlement to receive up to 100% of benefits from provident funds as a lump sum, continue to apply,” she said.
Shafudah said FIMA, which came into effect on 1 May 2026, marks the culmination of nearly two decades of policy development, legislative reform, stakeholder consultations and institutional readiness.
The legislation is expected to strengthen consumer protection, particularly for policyholders, pension fund members and investors.
“It ensures that financial institutions operate transparently and treat customers fairly, while also improving access to financial services,” she said.
Shafudah added that the Act would provide greater regulatory clarity and certainty for the financial sector, thereby supporting investment , innovation and long-term planning.
FIMA will be implemented by the Namibia Financial Institutions Supervisory Authority.
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