National Unity Democratic Organisation secretary general Josef Kauandenge said it is heartless to say when you resign at 35 years of age, you must wait another 20 years in misery and poverty before accessing your hard-earned money.
Nudo believes that the assertion or notion advanced by finance minister Iipumbu Shiimi and Namibian Financial Institutions Supervisory Authority (Namfisa) CEO Kenneth Matomola that “it was done in public interest” is a simply political gimmick aimed at appearing to be concerned with the welfare of workers.
“Both men simply don’t care what these regulations will do to those who need their hard-earned pensions now or tomorrow,” charged Kauandenge.
The Financial Institutions and Markets Act (FIMA) has raised many eyebrows and provoked heated discussions in recent weeks, while Nudo claimed the two men forget that there is a term in finance “time value of money”.
The time value of money is a basic financial concept meaning money in the present is worth more than the same sum of money to be received in the future.
Kauandenge stated that it is a contention that parliament as a House in which all legislative power rests should have been given an opportunity to debate the implications of such regulations before Namfisa seeks input from the general public.
“We demand that this Act be taken back to parliament to specifically debate these draconian and harmful regulations, and a wider consultation must be undertaken by Namfisa to gauge the authentic views of the workers themselves, and not through proxies,” he advised.
Earlier this month, Matomola urged the working public to remain calm ahead of the final standards and regulations on the Preservation of Retirement Benefits to be made under FIMA.
The new regulations (Regulation RF.R.5.10), which will be published in the Government Gazette on 1 October 2022 when FIMA becomes operational, state that 75% of a retirement fund must be preserved until the early retirement date as provided for in the rules.
This is done with the aim to ensure that more income is available to sustain retirement fund members after they retire, or otherwise their dependants if they pass away.
Also, Government Institutions Pension Fund (GIPF) CEO David Nuyoma highlighted some of the negative impacts of early pension withdrawals, stating that the money on average lasts a mere 18 months after individuals elect to resign before their retirement age.
After 18 months, he said, members would return to the GIPF offices, asking: “Are you sure there is nothing left?