Parliament to amend Pension Act, allow workers to access their funds 3 months down from 6
Malawi Parliament will deliberate on Amendment Bill in Pension Act of 2010 seeking to allow workers to access their funds three months after loss of employment, down from six months as is stipulated in the 2010 Act.
The amendment seeks also to allow use of the pension funds as collateral for property ownership such as a primary house or use the funds for medical insurance purposes.
Employers Consultative Association of Malawi (Ecam) executive director George Khaki said government should be commended for moving to resolve the concerns which have seen employers, workers and administrators n conflict over the Pension Act of 2010.
Khakhi says “employers support all the clauses that are up for amendment.”
The Amendment Bill to be tabled in Parliament has 64 clauses that seek to enhance the Registrar’s supervisory oversight over entities regulated under the Act and to remove discrepancies in the legislation by making Pension Act superior to Financial Services Act in cases of conflict.
Ministry of Finance spokesperson Williams Banda said the amendment will help to address concerns raised by various stakeholders regard the Pension Act 2010.
He cited the issue regarding access to pension benefits if one has lost employment.
“The current Pensions Act provides for six months and concerned employers raised a concern that the period is long. The amendment is proposing to reduce the period to three months, “said Banda.
Malawi Congress of Trade Unions (MCTU) secretary general Dennis Kalekeni has also welcomed the proposed amendment to use funds as collateral for workers to own a primary house as well as for medical insurance when critically ill.
I have always wondered was the motive for the key people formulating this 2010 Pension Act? from 2011 to date has it helped in any way apart from benefiting a few financial institutions and individuals? Its Draconian and Bingu goofed big time on this. LAZ and SKC jump on it.
Correction: Should read………..must be allowed to access all his pension money.
We need complete overhual of the entire Bill. An employee must be allowed to access all his pension matter immediately he leaves employment. The current slavery must be abolished. Mwanva ma MP.
Useless amendment. The way I for example is battling, been out of work for 3 years. I managed to draw my 40% but now the pension fund is sitting on the company contribution which is rightfully mine. I may not reach 50 years old to draw it. Why should I go hungry when the pension fund is earning interest on my money. Bullshit
Ndiye two months yo azidya chani?
The pension act amendment should also look at annuity. After getting 60% the remaining 40% is given as piecemeal. For example someone with K10 million ends up getting K40,000. What can that help that person? Why don’t give it all? Akazitafuna ndi zake. One cannot invest anything from K40,000. This is stupid.
It’s actually the opposite, you get 40 and the 60 as an annuity.
If we will be allowed to take all the 100%, then I will leave my job.
This is not enough. They should also consider allowing access of total pension funds maybe after 5 years if a person fails to get another job. There is no way a person is not working and suffering while he has money in pension fund and wait to access it after reaching retirement age. This should be considered too
ammend so that one can get all his benifits at one go.
osati zonyotsorazo iyai.
3 months after job loss munthu atenge zake zonse whether he is 23 years old or 60 years old.
Very good point…. why should one use the Pension as Collateral? That is nonsense. There should be no impediments on the access of Pension by the owner of the money. The Government should know that the decision on Pension earnings rests with the Owner. Period! It is not supposed to be mpamba for Financial Institutions nor for Government.
Please amend also the percentage we take should be 60 not 40.