Ensure Your Retirement Contributions Are Paid into a Registered Fund
Saving for retirement is one of the most important financial decisions you can make. Whether you are employed or self-employed, planning for your future allows you to enjoy financial freedom in your later years.
Most private-sector employees contribute to defined contribution schemes, where retirement benefits depend on how much they contribute. In contrast, public-sector employees are often part of defined benefit schemes, which pay out a pre-determined amount based on salary and years of service.
The Pension Fund Advantage
Contributing to a pension fund is one of the most efficient and cost-effective ways to save for retirement. Employer-sponsored pension schemes:
- Are often compulsory, making retirement saving a consistent habit
- Allow access to diversified investments that would otherwise be too costly for individuals
- Provide lower administrative and investment fees due to pooled contributions
Unfortunately, some employees have discovered—too late—that the fund they were contributing to for years was not actually a registered pension fund. As a result, they were not protected under the law, and could not claim their benefits.
In Namibia, pension funds must be registered with NAMFISA under the Pension Funds Act, No. 24 of 1956. Here’s how to ensure that your retirement savings are protected:
A Registered Fund Must:
- Be managed by an appointed Principal Officer
- Have a valid registration certificate issued by NAMFISA
- Operate under rules approved and stamped by NAMFISA
You can ask your employer or the fund’s Principal Officer for these documents, or contact NAMFISA directly to verify a fund's status.
Why Registration Matters
Only registered pension funds fall under the supervision of NAMFISA. This means:
- If the fund fails to deliver on its promises, NAMFISA cannot step in unless the fund is registered
- Any disputes or complaints cannot be handled under the Pension Funds Act
Take Action if You’re Unsure
- Ask your employer for the fund's registration details
- Contact NAMFISA to confirm if the fund is registered
If you discover that your employer is contributing to an unregistered fund, you are encouraged to report it to NAMFISA’s complaints department.
Legal Obligation to Register
According to Section 4(1) of the Pension Funds Act:
“Every pension fund shall apply to the Registrar for registration under this Act.”
So, any fund claiming to be a “pension fund organisation” must be registered. If not, the Registrar can investigate and take necessary action under Section 32 of the Act.
Most private-sector employees contribute to defined contribution schemes, where retirement benefits depend on how much they contribute. In contrast, public-sector employees are often part of defined benefit schemes, which pay out a pre-determined amount based on salary and years of service.
The Pension Fund Advantage
Contributing to a pension fund is one of the most efficient and cost-effective ways to save for retirement. Employer-sponsored pension schemes:
- Are often compulsory, making retirement saving a consistent habit
- Allow access to diversified investments that would otherwise be too costly for individuals
- Provide lower administrative and investment fees due to pooled contributions
Unfortunately, some employees have discovered—too late—that the fund they were contributing to for years was not actually a registered pension fund. As a result, they were not protected under the law, and could not claim their benefits.
In Namibia, pension funds must be registered with NAMFISA under the Pension Funds Act, No. 24 of 1956. Here’s how to ensure that your retirement savings are protected:
A Registered Fund Must:
- Be managed by an appointed Principal Officer
- Have a valid registration certificate issued by NAMFISA
- Operate under rules approved and stamped by NAMFISA
You can ask your employer or the fund’s Principal Officer for these documents, or contact NAMFISA directly to verify a fund's status.
Why Registration Matters
Only registered pension funds fall under the supervision of NAMFISA. This means:
- If the fund fails to deliver on its promises, NAMFISA cannot step in unless the fund is registered
- Any disputes or complaints cannot be handled under the Pension Funds Act
Take Action if You’re Unsure
- Ask your employer for the fund's registration details
- Contact NAMFISA to confirm if the fund is registered
If you discover that your employer is contributing to an unregistered fund, you are encouraged to report it to NAMFISA’s complaints department.
Legal Obligation to Register
According to Section 4(1) of the Pension Funds Act:
“Every pension fund shall apply to the Registrar for registration under this Act.”
So, any fund claiming to be a “pension fund organisation” must be registered. If not, the Registrar can investigate and take necessary action under Section 32 of the Act.
