Guest Contributor | Nov 5, 2019 | 0
GIPF’s Nuyoma provides clarity on strategic objectives, benefits and payout formula
The Chief Executive of the Government Institutions Pension Fund, Mr David Nuyoma, earlier this week hosted a meeting of public relations and human resources practitioners of all the fund’s member institutions, in an attempt to clarify certain issues on benefits.
Talking about the fund’s immediate objectives, Nuyoma said “The first objective is to improve member data integrity. The fund faces a particular challenge with the quality of its data. The result is that the fund has to set aside ‘reserves’ to make provision for any inaccuracies with the current data set. This is an area that the fund wishes to monitor and improve.”
On further strategies, Nuyoma continued “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.”
Over the next five years, the fund intends to reduce unclaimed benefits, to reduce the number of outstanding admissions, and to reduce the number of unenrolled annuitants.
Nuyoma concluded with providing clarity on the benefit structure saying “GIPF being a Defined Benefit 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.”
“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 can not be compared to a Death or Retirement benefit. 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.” concluded Nuyoma.