The proposed compulsory preservation of retirement benefits as contained in the new Financial Institutions and Markets Act (FIMA) will not come into force on 1 October 2022.
Such proposal is in a draft regulation which is yet to be approved. Therefore there is no need for panic.
This is being said by Government Institutions Pension Fund (GIPF) general manager for marketing and stakeholders engagement Mr Edwin Tjiramba.
Tjiramba states in a brief statement that his institution is aware of the interest generated by the proposed compulsory preservation of retirement benefits on social media platforms in recent days.
“The proposal for active members to preserve at least 75% of their retirement benefits upon early withdrawal is contained in a draft regulation proposed under the new Financial Institutions and Markets Act, No. 2 of 2021 (FIMA).
“This draft regulation is one of many critical regulations and standards that are being proposed to operationalize the FIMA,” says Tjiramba.
“The GIPF is aware that NAMFISA, as the institution that will be responsible for administering the FIMA (and the regulations and standards under the FIMA), has commenced consultations with various stakeholders on the critical standards. The GIPF awaits feedback from NAMFISA in this regard.
“In the interim, the GIPF cautions all its members to refrain from panic as the FIMA is not yet in force, and the proposed regulations and standards are not yet approved.
“Thus, the proposed compulsory preservation of retirement benefits is not expected to come into force on or before 1 October 2022.
“Rest assured the GIPF will continue to act in the best interest of its members.”
In the photo: Edwin Tjiramba GM: Marketing and Stakeholders Engagement at GIPF.