Namfisa sets a deadline for pension surplus distribution

THE Namibia Financial Institutions Supervisory Authority (Namfisa) has requested the trustees of the Roessing Pension Fund (RPF) to sort out the issue of a N$450 million surplus in the fund before the end of October.

Former employees of Roessing Uranium are demanding a share of the surplus. In a letter addressed to the RPF’s board of trustees, Namfisa said that, as the regulator of pension funds and public protector, the institute was concerned that any distribution of the surplus should be made in a “fair and equitable” manner.Namfisa said to ensure that the surplus was distributed fairly, the trustees should keep Namfisa updated and not make any distribution without the written approval of the Registrar of Pension Funds.The letter was written two days after information sessions were held for Roessing Pension Fund members at Walvis Bay and Swakopmund on July 16.The meetings gave existing employees and pensioners of Roessing an opportunity to vote on how the company should handle the surplus of over N$450 million.Existing members could choose to remain on the current defined benefit fund – in which the pension payout is fixed according to stipulated contribution – or to go over to a defined contribution fund, where the workers pay according to the fund’s sustainability; hence also allowing for a distribution of the existing surplus.Former employees who attended the meeting left frustrated, as their queries and objections were dismissed.According to the RPF trustees, former members have no legal entitlement to the surplus.In the meantime, new legislation regarding the distribution of pension fund surpluses has been tabled.According to Winston Groenewald, chairman of the committee for former workers and pensioners, that is spearheading the effort to stake a claim for former employees in the surplus, indications are that Cabinet is in favour of this legislation.Groenewald, who relayed the contents of the Namfisa letter during a meeting with more than 100 former employees on Tuesday, said Namfisa expected the trustees to take cognisance “of the spirit and sentiments expressed in new legislation currently being proposed”.According to him, indications were that the new legislation could be in place within the next 18 months.Groenewald claimed that Roessing was trying to find ways to distribute the surplus, sidestepping the former employees, before the new legislation is in place.In a letter addressed to the RPF’s board of trustees, Namfisa said that, as the regulator of pension funds and public protector, the institute was concerned that any distribution of the surplus should be made in a “fair and equitable” manner.Namfisa said to ensure that the surplus was distributed fairly, the trustees should keep Namfisa updated and not make any distribution without the written approval of the Registrar of Pension Funds.The letter was written two days after information sessions were held for Roessing Pension Fund members at Walvis Bay and Swakopmund on July 16.The meetings gave existing employees and pensioners of Roessing an opportunity to vote on how the company should handle the surplus of over N$450 million.Existing members could choose to remain on the current defined benefit fund – in which the pension payout is fixed according to stipulated contribution – or to go over to a defined contribution fund, where the workers pay according to the fund’s sustainability; hence also allowing for a distribution of the existing surplus.Former employees who attended the meeting left frustrated, as their queries and objections were dismissed.According to the RPF trustees, former members have no legal entitlement to the surplus.In the meantime, new legislation regarding the distribution of pension fund surpluses has been tabled.According to Winston Groenewald, chairman of the committee for former workers and pensioners, that is spearheading the effort to stake a claim for former employees in the surplus, indications are that Cabinet is in favour of this legislation.Groenewald, who relayed the contents of the Namfisa letter during a meeting with more than 100 former employees on Tuesday, said Namfisa expected the trustees to take cognisance “of the spirit and sentiments expressed in new legislation currently being proposed”.According to him, indications were that the new legislation could be in place within the next 18 months.Groenewald claimed that Roessing was trying to find ways to distribute the surplus, sidestepping the former employees, before the new legislation is in place.