After applying for Rule Amendments by the Registrar of Pension Funds under the auspices of the Namibian Financial Institutions Supervisory Authority (Namfisa), the Namibian Building Workers Pension Fund (NBWPF) now allows for higher monthly contributions from both members and employers.
=In fact, the application to seek amendment of Rule 4 (Contributions) of the NBWPF’s Fund Rules was already approved in October 2022 by the Registrar of Pensions.
Previously, the monthly member contribution was restricted to a rate of 4% of his or her salary. This has now changed, and the Rule Amendment allows for member monthly contributions that are higher than 4%.
As such, rule 4.1.1 of the NBWPF Fund Rules has been changed to read: “The member shall contribute monthly to the Fund at a minimum flat rate of 4 per cent of this Fund Salary, or such higher specified rate as set out in the Special Rules”.
In addition, rule 4.2.1 of the NBWPF Fund Rules has been changed to ensure at minimum a match between employer and member contributions. The change reads: “The Employer shall make a minimum monthly contribution in respect of each Member equal to 4% of the Member’s Fund Salary, or such higher specified rate as set out in the Special Rules”. Enwich Kazondu, principal officer of the NBPWF, was upbeat. “We are very happy that these amendments have been approved. In this way, contributions from both the employer and the member are not restricted to the minimum, but there is now scope to improve the retirement packages of our members”, he said.
With these changes in place, which no longer restrict the level of contributions, employers can improve their employees’ remuneration package by increasing the contribution to the employees’ pension fund. Besides contributing towards the employees’ long-term social protection, it is also important that employers take note that these contributions are tax- deductible expenses for their businesses.
With the change in the level of contributions by both the employer and the member, the scope is also widened by who would join the pension fund.
Kazondu observed: “The amendment speaks to those employers who would like to find a pension fund in our industry that looks at the needs of the entire spectrum of their employees, across the board. For all so-called categories of employees, there is now a place with us to build their retirement savings”. “That allows for a streamlined approach and far easier pension fund administration, which is favoured by our contributing employers. At the same time, it will help to further the value of the fund, which currently stands at around N$220 million, with 2 547 actively paying members”. He added that the NBPWF has embarked on a campaign aimed at informing current and prospective employers about the changes and related benefits.
“As the employing businesses are not required to be only construction businesses, other professions and sectors closely aligned to the construction sector will be engaged to share with them the opportunities and benefits the fund provides,” said Kazondu.