Regulatory Alerts2021-11-10
Added · Updated
Minimum Benefits That a Fund Must Provide
The Namibia Financial Institutions Supervisory Authority (NAMFISA) issued Standard RF.S.5.7 to mandate that every retirement fund provide members with a protected minimum individual reserve upon benefit cessation, termination, or dissolution. The regulation establishes calculation methodologies for defined contribution and defined benefit funds, shields these reserves from attachment, execution, and insolvency, and requires boards to grant inflation-linked retirement benefit increases at least once every three years. Applicable to all registered funds regardless of registration date, the standard ensures boards maintain and pay all rule-specified benefits while clarifying that defined contribution fund reserves remain exposed to the board’s adverse investment decisions.