The Namibia Building Workers’ Pension Fund (NBWPF) says it currently has assets worth N$281.6 million.
Established in 1990, the Fund currently caters for the construction industry, a sector where pension fund contribution is mandatory.
The Fund’s Principal Officer Enwich Kazondu said employers can now structure their benefits and pension contribution above the initial universal 4%, following the approval of the amendment of Rule 4 in October last year.
“With the amendments to the rules, members may now contribute a 4% flat rate by both the employer and employee, making it an 8% contribution in total. While through the Special Rules, the employer can now contribute more depending on affordability, as opposed to before where pension was restricted to only 4%,” he said.
The Fund provides services and benefits such as death (N$50,000), funeral (N$20,000), and disability (N$50,000) which is offered in addition to the pension.
Kazondu said the NBWPF’s main target was to provide a sustainable future for low-paid members such as the bricklayers and general workers, who are most vulnerable to the volatility of the industry, hence the minimum 4% peg to promote affordability.
The service can now also be offered to skilled personnel such as surveyors, architects and engineers.
“It is a headache dealing with the sector now that we are self-administered because we are allowing our members flexibility to join and withdraw funds irrespective of the time they joined because we understand how the sector works. We have no problem, for instance, one may be employed for three months then exits the system and opts to withdraw funds, then after a month returns to join upon securing another job,” he said.
In addition, the principal officer said such a system is not affecting the fund’s sustainability in any way, although acknowledging that it is a daunting administrative process.
Following the amendments and approval by the Namibia Financial Institutions Supervisory Authority (NAMFISA) the Fund now operates as a private equity, compared to before it could only operate in insured policies.
The fund consists of 2030 members sourced from 84 construction companies.
Construction Industries Federation chairperson Gordon Goeieman said “the mandatory requirement will eventually extend to sectors beyond the construction industry, taking into consideration the current global and local economic environment, which makes it obvious that one needs to make a provision for a retirement thus securing a sustainable financial future”.
