A GLANCE AT NAMIBIAS RETIREMENT SECTOR Presented by: Elvis
Nashilongo Chairman: GIPF Employees Pension Funds, Namibia 06 July
2015
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TABLE OF CONTENTS INTRODUCTION SNAPSHOT ON NAMIBIAS RETIREMENT
SECTOR SIGNIFICANCE OF RETIREMENT FUNDS ISSUES OF SIMILARITIES
REGULATORY ENVIRONMENT PLANNED INDUSTRY OVERHAUL COMMON CHALLENGES
CONCLUSION
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INTRODUCTION The purpose of this presentation is to share
information with regard to the status of retirement funds in
Namibia. Thus creating continental engagements on Common approaches
Uniformity of Retirement reforms Share innovation and solutions
Promote African integration agenda
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SNAPSHOT ON NAMIBIAS RETIREMENT SECTOR Namibia regard social
security as a fundamental human right. The sector is segmented into
contributory and non-contributory benefits There is about 111
registered contributory Pension schemes in the country It has over
N$117 billion under management Serves as backbone of the financial
services industry Key to capital market growth and development
Shift of focus to mere benefits provision to include developmental
investing
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IMPORTANCE OF RETIREMENT FUNDS Consumption smoothing Social
safety and security net (Insurance) Redistribution of income
Development and stimulation of financial sector
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ISSUES OF COMMON SIMILARITIES Namibia shares a unique history
with S.A. Laws governing the industry are inherently similar As a
result of economic linkages, industry reforms are reciprocal in
nature Citizen share similar socio-economic background Both
industry share from a pool of professional service providers
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REGULATORY ENVIRONMENT Current Instruments include Pension
Funds Act (Act No. 24 of 1956) Inspection of Financial Institutions
Act (Act No. 38 of 1994) Income Tax Act (Act No. 24 of 1981)
Namibia Financial Institutions Supervisory Act (Act no.3 of 2001)
Financial Institutions Investment of Funds Act (Act No. 39 of 1984)
Directives and Circulars Recent Reforms include - Amendments to
Regulation 28, which requires 35% of total assets to be invested in
the local economy Regulation 29, which requires registration of
SPVs and Unlisted Investment Managers Amendment to Regulation 27,
which reduced interest rate on members housing loans. Regulation
26, introduces daily penalties for non-submission of required
information
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PLANNED INDUSTRY OVERHAUL Pension funds Act of 1956 to be
replaced by Financial Institutions and Market Act. FIM Bill is now
at advanced stage and once enacted it will: -Consolidate, update
and amend legislations that govern non-banking financial services.
-Place more emphasis on roles and duties of trustees and management
-Enforce the shift from compliance based to risk based supervision.
-Promotion of self-regulation
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COMMON CHALLENGES Out-dated regulatory environment Complexities
in complying with existing laws Fragmentation of laws in the
non-banking financial services sector Administrative challenges in
pension distribution Challenges related to governance Uncertainty
due to regional and global market volatility Growing liabilities
and increasing stakeholders expectation The need to optimize
members benefits
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CONCLUSION We believe that continental dialogue on retirement
reform is necessary and long overdue. Namibia is prepared to share
her experience while taping from regional, continental and global
best practices. The effort of the IRFA to promote this dialogue
should be applauded. THANK YOU