WINDHOEK - The Government Institutions Pension Fund (GIPF) says it has set aside N$1.5 billion in reserves to make provision for any inaccuracies with the current data set.
This was revealed by the fund’s CEO David Nuyoma during a stakeholder engagement meeting with human resources and public relation officers from participating institutions on Tuesday.
“The fund faces a particular challenge with the quality of its data. The result of this situation is that the fund has to set aside ‘reserves’ in order to make provision for any inaccuracies with the current data set,” Nuyoma told the gathering, adding that the fund first objective is to improve member data integrity.
“This is an area that the fund wishes to monitor and improve. With your pro-active assistance, these data inaccuracies or omissions can be reduced to acceptable levels,” said the GIPF CEO.
According to him, the second strategic objective is to maximise operational efficiency.
“This strategic objective revolves around the aspiration to administer, processes and pay claims and benefits in the most efficient time possible, with a high level of accuracy,” he said.
Similarly, Nuyoma said the fund’s 2018-2023 Strategic Plan aims to reduce the number of unclaimed benefits, the number of outstanding admissions, and the number of unenrolled annuitants.
“Esteemed stakeholders, as our key stakeholders in this business process, play a direct role in ensuring that claims and files submitted are of high standard,” he pleaded.
“You also ensure that your colleagues at your ministries and participating institutions are well versed with the retirement and ancillary benefit entitlements and procedures basically how, when and what to claim,” he added.
“We are playing on the same team, and we are serving the same client. Our hope is that our level of cooperation and synergy can grow to even greater heights so that members, which include you our esteem quests, are served in a manner that is right, fast and humane,” he said.
Nuyoma concluded with providing clarity on a video circulating on social media regarding the fund’s benefit structure.
He explained that GIPF, being a defined benefits scheme, offers promised benefits that are formula based.
“Members are not paid a value of their contributions in the fund, but their pension payout is based on a predetermined formula, which ensures high and sustained income for members,” he explained.
“The only time members get a value that is determined by the contributions received, is when they are paid a withdrawal benefit which by all measures cannot be compared to death or retirement benefit,” he said.
“To extend benefits to a family member at the age of 50 will simply not be affordable. The structure and level of benefits to be offered are determined by contributions required to meet the cost of those benefits. The formula being used by GIPF is by far very competitive in the market,” Nuyoma stated.
The purpose of the engagement was to engage HR and PR officers on pertinent and vital information regarding GIPF’s corporate strategy and operations.