As part of its statutory mandate of providing pension and other related benefits to civil servants as well as employees of participating institutions established by Acts of Parliament, the Government Institutions Pension Fund (GIPF) is constantly offering pre-retirement. As a pension fund, stakeholder relationships and engagement remain critical as this empowers members with
As a responsible Fund, offering pre-retirement workshops to its members who are about to go into retirement is crucial. The GIPF took this important decision to conduct workshops throughout the country. Pre-retirement workshops certainly provide members with the much- needed knowledge to help them make more informed choices about their retirement. The workshops further provide financial tips to support members’ decision making as they reach this critical milestone in their working lifetime.
Retirement can be very difficult and emotional as members find it difficult to identify what they must do when they go on retirement, hence the first step in pre-retirement planning is identifying your retirement goals. Part of this may include financial aspirations, such as maintaining a certain standard of living or letting go of some certain activities that you used to do while you were gainfully employed and as such, your planning should include all your personal ambitions, such as where to retire, traveling the world, new or old hobbies, or taking up new community activities.
Therefore, the benefit of pre-retirement workshops cannot be overstressed. Retirement in most cases to some involves significant changes to what they do in their daily activities including personal finances, and many other activities. To answer the many questions about retirement, the GIPF regularly conducts these workshops with the aim to cushion members into retirement as many members interpret retirement with mixed reactions and sentiments. Even those looking forward to retirement usually feel an intense level of anxiety as that date approaches.
As a Fund, GIPF continuously emphasises the need for members to attend the pre- and post-retirement workshops. The Fund believes members who are prepared for retirement become better and more successful as retirees. While retirement is a welcomed life change and a bonus to some it could be a nightmare to others and hence the importance of attending such sessions.
Topics discussed during the pre-retirement workshops include a look at the GIPF retirement benefits, followed by financial planning and usually concludes with a powerful testimony from a GIPF retiree who is enjoying and loving retirement.
Biometric verification
Meanwhile, GIPF is reminding all re-enrolled pensioners, children, and spousal beneficiaries in all the regions that the Biometric Verification (proof of life) process is now underway. As such, pensioners, children, and spousal beneficiaries are encouraged to visit the nearest GIPF offices country-wide without delay.
Verification (proof of life) on the Biometric system is key to ensuring the Fund pays benefits to the rightful beneficiaries and on time.
Members have been reminded to verify their Biometric information at their nearest GIPF office, three times a year. For more information members and beneficiaries are encouraged to call GIPF on 061 205 1000, log onto the website on www.gipf.com.na or alternatively visit the nearest GIPF office.
Benefit increase
Earlier this year GIPF announced a pension benefit increase of 5.46% from the 4.62% increase for 2022/2023. The pension benefit increase is effective 01 April 2023 for all GIPF pensioners. The Board of Trustees decided on the rate after a thorough actuarial due diligence that amongst others looked at the Fund’s average annual return over the last five years, the current and future liabilities and the assets of the Fund. Given the fact that returns are volatile from year to year, the Fund has adopted a 3-year averaging method for the GIPF, with the returns of each December year-end serving as a reference point.
Therefore, amidst the current volatile economic outlook resulting in increasing fuel and commodity prices, the Fund continues to provide guaranteed benefits to members. In awarding pension increments, the Fund constantly strikes a delicate balance by considering the volatile investment returns, global geo-political circumstances, the need to manage expectations regarding pension increases and to ensure that our pensioners live reasonably within inflation parameters.
A pension increase serves to cushion pensioners from unexpected changes in their purchasing power and hence the incessant ability to increase members’ benefits annually is driven by the Fund’s collective commitment to guard and grow members’ financial security. The Fund aims to match the Namibian Consumer Price Index (NCPI) to ensure that pensions in payment retain their purchasing power over time, subject to affordability.