The GIPF has taken exhibit of articles circulating on social media regarding the “loss of life after retirement” benefits supplied by the GIPF, and more so as it impacts contributors who’re single at the time of their loss of life.

– Upon retirement (same old or early), a member receives a 1/3 tax-free lump sum while the closing 2/3 is used to purchase an in-dwelling monthly pension (annuity) which the Fund pays to the retired member for the comfort of his/her lifestyles. This pension is principally increased yearly to try to provide protection to it from inflation.

– Regarding the loss of life of the retired member, the Solutions of the Fund inform that the 2/3 retirement lend a hand of a retired member is assured for a duration of five years after retirement. Which suggests, must soundless the retired member die within five years of retirement, the monthly pension which used to be presupposed to be paid to the retired member in appreciate of the principle five years of retirement will soundless be paid out as follows: o If a single retired member dies for the length of the assured duration, the closing assured steadiness (five years pension) is dispensed to the beneficiaries. Where there are no beneficiaries, the money is paid over to the Grasp of the High Court docket for the lend a hand of the member’s estate.

o If a married retired member dies for the length of the assured duration, the closing assured steadiness (five years pension) is paid out to the accomplice. The surviving accomplice receives 100% of the deceased member’s monthly annuity, and after the guarantee duration, here’s lowered to 50% for lifestyles.

From the facts supplied within the social media post, the member in question went on early retirement at the age of 55. She bought a 1/3 tax free lump sum while the closing 2/3 used to be paid to her as monthly pension (annuity). The member in question earned a monthly pension for 18 years after retirement, in essence she bought a promised lifestyles monthly annuity for a further 13 years after the assured duration.

A summary document of the total pensioners of the GIPF as per essentially the latest actuarial valuation dated 31 March 2021 signifies that over two-thousand GIPF pensioners are 81 years and older. Twelve are 101+ years extinct, which implies the Fund has been paying them a monthly pension annuity for over 41 years since they went on retirement, and this lend a hand will be extended to their surviving spouses for lifestyles, the day they slip on. If these pensioners had been in one more ambiance, this extended increase is doubtlessly no longer conceivable.

The Fund takes cognisance of the scandalous advice being circulated on social media that contributors must soundless resign to money out their pension and/or to transfer to a preservation Fund. Such advice disadvantages contributors for the next causes:

– Members will lose out on the “lifelong pension” lend a hand. This lend a hand will not be any longer available in a preservation fund.

– Members lose out on the annual pension will enhance, also handiest weird and wonderful to an outlined lend a hand fund such as the GIPF.

– Members lose out on the lend a hand of spousal income for lifestyles within the case of married contributors.

– Members lose out on the medical support provision, which is a extreme lend a hand for any retired member. GIPF contributors handiest pay up to N$240 for a excessive top class per month, which ensures they savor derive entry to to any non-public or public health heart countrywide.

Resigning quickly earlier than retirement has grave consequences for any member in relation to a commission charged by financial advisors, getting absolutely taxed for the withdrawal amounts, and carrying the administration bills in case of transfer to a preservation fund.

Members are advised to seek at the total GIPF benefits holistically, and no longer single out a particular lend a hand. The GIPF also presents same old retirement, early age retirement, sick-health, disability, loss of life earlier than retirement, loss of life after retirement, retrenchment, funeral and resignation benefits.

Expertise has taught us that as a rule, contributors who resign quickly earlier than retirement rarely reinvest their pension payout, which disadvantages the contributors and defeats your total aim of a pension plan in same old.

Amidst COVID-19 realities and prevailing turbulent market performances, closing within a Outlined Attend Fund such as the GIPF is to a immense lend a hand of contributors since they don’t lift the investments dangers, and that their pension benefits are defined and warranted.

Edwin Tjiramba is GIPF’s GM: Marketing and Stakeholders Engagement.