GIPF benefits guaranteed irrespective of economic conditions: Iipumbu
21 Jun 2019 16:20pm
WINDHOEK, 21 JUN (NAMPA) Deputy Minister of Industrialisation, Trade and SME Development, Lucia Iipumbu on Wednesday assured Government Institutions Pension Fund (GIPF) members that their benefits are guaranteed upon retirement, irrespective of economic condition or market performance.
Iipumbu was responding to questions from other Members of Parliament but specifically to Elma Dienda of the Popular Democratic Movement, who encouraged GIPF members to leave the institution and move to other institutions because GIPF cannot be trusted with their pension fund benefits.
Iipumbu said GIPF, like any other pension fund founded under the terms of the Pension Funds Act of 1956, which requires pension fund institutions to choose between two types of funds that exist in the pension fund industry - the Defined Benefit Fund and Defined Contribution Fund.
She stated that GIPF is operating under the Defined Benefit Fund, which is favourable to their clients because it does not affect clients even if the market does not perform well, but members still receive the benefit they are promised in the rules.
The member receives their free lump sum upon retirement and then the remaining portion of their pension is therefore calculated to be payable on a monthly basis. Furthermore, the fund guarantees a pensioner to receive a monthly pension for five years after retirement whether dead or alive, said Iipumbu.
She added that as long as the pensioner lives, the monthly pension will continue for life and when the pensioner dies, for as long the surviving spouse lives, then the monthly pension will continue for life, and in a case of a single pensioner dies before the five years guarantee period is over, the remainder of his or her pension benefits are payable as lump sum to beneficiaries.