Namfisa scraps 75% pension retention rule for redesign
The Namibia Financial Institutions Supervisory Authority (Namfisa) has paused a pension rule requiring 75% capital retention until age 55.
Chief executive Kenneth Matomola announced that the regulation will be redesigned following wider stakeholder consultations, as the Financial Institutions and Markets Act (FIMA) proceeds without the clause.
Speaking on the sidelines of a stakeholder engagement session this week, Matomola said Namfisa had returned “to the drawing board” to revise the regulation.
“We are going back to the drawing board. That legislation or regulation will not be issued for now. Even when the paper comes into force today, we will redesign it and then undertake broader consultation on that regulation,” he explained.
Matomola added that the wider consultation is part of efforts to secure general buy-in on the design of regulations around pension preservation.
“Once that broader consultation is complete, the finance minister will review it. If policymakers are satisfied, the minister can then issue the regulation under FIMA. That is where we currently stand,” he said.
He said that FIMA itself can be implemented immediately, as it allows the minister to issue regulations for the preservation of pension benefits. “The minister can decide not to issue it. The decision now is to withhold issuance in its current form, allow it to be redesigned and reworked, consult more broadly, and thereafter the minister can decide to issue it.”
Chief executive Kenneth Matomola announced that the regulation will be redesigned following wider stakeholder consultations, as the Financial Institutions and Markets Act (FIMA) proceeds without the clause.
Speaking on the sidelines of a stakeholder engagement session this week, Matomola said Namfisa had returned “to the drawing board” to revise the regulation.
“We are going back to the drawing board. That legislation or regulation will not be issued for now. Even when the paper comes into force today, we will redesign it and then undertake broader consultation on that regulation,” he explained.
Matomola added that the wider consultation is part of efforts to secure general buy-in on the design of regulations around pension preservation.
“Once that broader consultation is complete, the finance minister will review it. If policymakers are satisfied, the minister can then issue the regulation under FIMA. That is where we currently stand,” he said.
He said that FIMA itself can be implemented immediately, as it allows the minister to issue regulations for the preservation of pension benefits. “The minister can decide not to issue it. The decision now is to withhold issuance in its current form, allow it to be redesigned and reworked, consult more broadly, and thereafter the minister can decide to issue it.”
