BENEFIT STRUCTURE​

Retirement Benefits

What is my normal retirement date?

It is the last day of the month in which you reach the age of 60 years.

How much will I receive if I retire on my normal retirement date?
You will receive your member share.

Your member share is the sum of:

  • your contributions and;
  • your employer’s contributions toward retirement saving;
  • your part of any surpluses declared and;
  • any amounts you might have transferred from another fund;
  • investment earnings allocated by the Fund.

Yes you may retire at a date earlier than your normal retirement date. Provided that you get the approval of your employer, you may retire at any time during the ten years before your normal retirement date. You may also retire at any other time if you are forced to stop working because of ill-health. In either case you will receive your member share.

Yes. Should your employer wish to retain your services after your normal retirement date you may remain a member of the Fund. This will increase the value of your member share. When you do retire, you will receive your member share.

When you retire, your member share is made available. You may elect that up to one-third of your member share to be paid to you in a lump sum. This lump sum is payable tax free. The balance (2/3) must be used to buy a monthly pension from a service provider of your choice, to be paid to you in one of the following ways:

  • During your lifetime only, in which case the pension will stop at your death
  • For a specified period (guaranteed period), in which case the pension will be paid to you until you die. But if you die before the end of the specified period, your pension will be paid to your dependants, or to a person you may have nominated to receive it, until the end of the specified period.
  • During your lifetime, and, after your death, to a person you nominate until the death of that person.

Other types of pensions are also available and you are encouraged to get advice from reputable persons or companies involved in managing retirement benefits.

Each year, after the Fund’s financial year end (30 September) you will receive a benefit statement confirming the value of your fund credit. The statement also highlights what benefits you will receive in case of death and disability.

Death Benefits

Your dependents, and or your nominees will receive the sum of:

  • Your member share; plus
  • The insured death benefit (this amount may change annually).

 The Trustees will distribute your death benefit in terms of section 37C of the Pension Funds Act amongst your dependents and nominees taking your nomination form into account.

Your dependents, and or your nominees will receive your member share. The Trustees will distribute this amount in terms of section 37C of the Pension Funds Act amongst your dependents and nominees taking your nomination form into account. No insured death or disability benefits are provided for after the age of 60.

Disability Income Benefit

If your disability claim is accepted by the insurance company that insured the disability benefit, you will receive a monthly disability income benefit. Your monthly disability benefit will be equal to 75% of your monthly pensionable salary.

The disability pension is increased in line with inflation from year to year.

Your monthly contributions to the Fund will be deducted from your monthly disability income. Your employer’s contributions on your behalf are also funded by this policy.
This disability income is taxed like normal income.

If you become disabled and are in receipt of a disability benefit, you remain a member of the Fund until age 60.

Note: Your disability income may be reduced if you receive any other disability benefits from the Fund, or income from other sources.

The following example shows a typical calculation of this disability income benefit. In this example, we have assumed that the Member earned a Remuneration of N$48 000 per year at the time of disablement.

What effect does my receipt of a disability income have on my membership of the Fund, or on my benefits?

While you are in receipt of a disability income, you remain a full member of the Fund and you remain entitled to all your benefits. Your contributions to the Fund, as well as those of your employer, continue to be paid during this period.

Your disability income will stop:

  • If you die; or
  • Should you in the eyes of the insurer again become employable in the open market taking into account your age, education, the level of work you used to do and your experience; or
  • When you reach the normal retirement age, whichever comes first.

Yes. Your disability income will increase at a rate of 5% per year. But if the percentage increase in the consumer price index is less than 5%, the increase in your disability income will be reduced accordingly.

During this period your death benefits from the Fund, are deemed to increase.

Withdrawal Benefits

You will receive a withdrawal benefit equal to your member share. You may choose to receive a cash benefit or to transfer your benefit to another approved fund in Namibia. The cash benefit will be fully taxable. The transfer benefit will be transferred tax free. If you chose to take a part of the transfer benefit in cash this cash portion of your benefit will be fully taxable. (Please note that the settling of any outstanding housing loans is deemed to be a cash benefit)

If you choose to take your benefit in cash you will be paid your member share,

Your member share is the sum of:

  • Your contributions.
  • Your employer’s contributions toward retirement saving.
  • Your part of any surpluses declared.
  • Any amounts you might have transferred from another fund.
  • Investment earnings allocated by the Fund.

This benefit will be taxed at your marginal tax rate and any arrears taxes you might have will also be deducted from this amount.

If you choose to transfer your benefit to another approved Namibian fund your full member share calculated as above will be transferred to fund of your choice. This transfer will be free of income tax.

What happens if I am retrenched or made redundant?

In this situation, your benefit will be the same as a withdrawal benefit. You may choose to receive the benefit in cash or you may choose for it to be transferred to another approved Namibian fund.

If you do not qualify for a Disability Income Benefit, you will receive your member share. You may choose to receive the benefit in cash or you may choose for it to be transferred to another approved Namibian fund.