10 Jul 2019 16:30pm
WINDHOEK, 10 JUN (NAMPA) - Popular Democratic Movement (PDM) Member of Parliament (MP), Elma Dienda, and Swapo Party chief whip and MP, Evelyn !Nawases-Taeyele, were at loggerheads in the National Assembly (NA) on Tuesday, over the Government Institutions Pension Fund (GIPF) benefits for spouses and their children.
!Nawases-Taeyele in the NA on Tuesday explained that the members spouses and children will benefit after he/she died but only within an age range, arguing that it will be unaffordable.
I wish to caution that it will not be logical for any pension scheme to have endless benefits that get extended to family members into perpetuity. To extend benefits to a family member at the age of 50 will simply not be affordable, !Nawases-Taeyele said.
Dienda, on the other hand, felt that the answer did not satisfy her curiosity on where the rest of the remaining 50 per cent of the deceased members money goes.
Nawases-Taeyele went to say if the member leaves behind a young spouse, he/she will be guaranteed of a pension for life and equally, if the same member has minor children, they too will be paid monthly pension until the age of 25 or while they are still in school or attending a university.
On 13 June 2019, Dienda wanted clarity on the terms as to why the spouses and children of a GIPF member only receives 50 per cent of the pension benefits when the main member dies compared to the 100 per cent when he/she is alive.
GIPF Acting General Manager of Marketing and Stakeholders Engagement, Morna Ikosa, at a consultative meeting with human resources and public relations officers in the capital on Wednesday, said the concern over the funds remaining in GIPF is somewhat overstretched, as GIPF pays insured benefits.
The formula being used by GIPF is by far very competitive in the market and members can make their own analysis to that effect, she said.
Ikosa added that the members are not paid the value of their contributions in the fund, but their pension pay-out is based on a predetermined formula, which ensures high and sustained income for members.
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 benefits that the Honorable (Dienda) is referring to, Ikosa added.