Regulatory Alerts2021-11-10
Added · Updated
Alternative Forms of Payment of Pensions for Defined Contribution Funds
The Namibia Financial Institutions Supervisory Authority issued Standard RF.S.5.11 to mandate how defined contribution fund members convert their accounts into retirement income upon retirement or early withdrawal. The standard permits members to elect from multiple annuity structures or programmed withdrawal schemes, requiring registered providers to supply clear information and accept at least sixty days’ advance notice of election. If no choice is made, a default programmed withdrawal scheme applies with a minimum five percent annual drawdown rate, while maximum payout rates for these schemes are capped at twenty percent.
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