Eligibility and contribution rules

Eligibility

Each employee permanently employed by one of the participating employers shall join the Fund as a condition of employment and shall not be permitted to withdraw from membership while he remains in service.

How much do I contribute to the Fund?

You must contribute 7% of your pensionable salary to the Fund, effective from the month in which you become a permanent employee. Your employer will automatically deduct this amount from your salary each month. Your contributions are tax deductible up to N$ 40 000 per annum. This 7% is applied directly toward your retirement benefits. You may also decide to make additional voluntary contributions (AVC) which must be a round figure of your pensionable salary to improve your retirement benefits. The AVCs can be adjusted annually by on or before 31 August.

How much does my employer contribute on my behalf?

Your employer contributes an amount equal to 16% of your pensionable salary to the Fund: 11, 5% of this contribution is allocated toward your retirement benefits and the balance of 4,5% is used to purchase your death and disability benefits and pay the administration costs of the Fund. The amount of money allocated to the purchase of the death benefit will be limited to 2, 78% of the total remuneration and the cost of the disability benefit is limited to 1,27% of total the total pensionable remuneration.