Africa-Press – Namibia. THE Minister of Finance, Iipumbu Shiimi, will inaugurate the Technical Advisory Committee on Chapter 5 of the Financial Institution and Market Act (FIMA) next week. The committee is intended to provide feedback to the minister on the Mandatory Preservation of Pension funds in Namibia, which has been much debated.
The committee’s mandate is to consult on the standards and regulations, including Regulation RF.R5.10 (Preservation of Retirement Saving Regulation), to be issued under Chapter 5 of the new Financial Institutions and Market Act, Act No.2 of 2021, and make recommendations to the minister on the outcome of the consultations.
In a recent media statement, the Namibia Financial Institution Supervisory Authority (NAMFISA) explained that Shiimi established a Technical Advisory Committee to conduct formal consultations with the broader public on Regulation RF.R5.10 – Preservation of Retirement Benefits.
NAMFISA also explained that the formal consultation process impacts the implementation date of the FIMA. The intention is to obtain representations from all stakeholders, and for the Technical Committee to objectively assess the representations and formulate advice on the above regulation and other ancillary provisions of Chapter 5 of FIMA – Retirement Funds.
Therefore, the implementation date of FIMA shall remain postponed pending the finalization of the consultation processes.
FIMA, which replaced the outdated Pension Fund Act of 1956 and was gazetted on 30 September 2021, was meant to be implemented on 1 October 2022. However, due to much public uproar, the implementation of the act was deferred due to Regulation RF.R.5.10, which proposes that members who leave a pension fund before retirement or early retirement age are compelled to preserve at least 75% of their accumulated benefits.
For More News And Analysis About Namibia Follow Africa-Press
