Members
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To become a member of the Fund you must be either:
(i) an employee who is in the permanent full-time service of any of the employers i.e. Unam or NUST; or
(ii) is a full-time employee who is employed on a fixed term contract basis for a period exceeding 12 months and who, in accordance with his/her contract, has elected to join the Fund.
A PORTION OF YOUR SALARY IS INVESTED IN THE RETIREMENT FUND
You contribute 7% of your salary to the Fund each month by means of a deduction from your salary. This money, also known as “Member Contribution”, is put into an account and marked as your own. (Let us call it your “Retirement Savings Account”). You may also voluntarily increase your own monthly contributions to either 8%, 9% or 10% to accelerate your “Retirement Savings Account”. These increases are only allowed once a year. The deadline for this option will be communicated to you in good time.
Your employer pays another 10% of your salary to the Fund each month into your “Retirement Savings Account” (“Employer Contribution”).
The employer pays a further 8% of salaries to provide for the cost of administering the Fund and the insurance of the death and disability benefits for you and your dependants, as well as guarantees provided for in the Rules. Should there be any saving on this 8%, such saving is also transferred to your “Retirement Savings Account”.
Together these three amounts make up your share of the Fund. You do not pay any tax on the money you invest in the Fund subject to the limits set by the Receiver of Revenue. (Currently N$40 000 p.a.)
If your salary increases, the amount that both you and your employer put into the Fund will increase too.
Should you want to make a once-off lump sum contribution (i.e. money you inherited) it will also be added to your share.
All this money is then invested by the Fund so as to earn as much interest as possible for you. The rate of interest that your money earns is linked to the performance of the Fund and the prevailing market conditions. This is determined each year by an independent expert (an Actuary) and added to your “Retirement Savings Account”.
WHO MANAGES THE FUND?
The Fund is an independent entity and is administered by a Board of Trustees with equal representation from both the University of Namibia and the Namibia University of Science and Technology as employers and their respective employees. The main functions of the Trustees are to ensure that your interests are protected and that you receive the best possible benefits.
APPOINTMENT/ELECTION OF TRUSTEES
Each employer appoints three Trustees (Unam 3; NUST 3) while the members from each employer elect three Trustees (Unam members 3; NUST members 3). All Trustees are appointed/elected for a period of 5 years.
Member Trustees must be nominated by an active member of the Fund who is employed by that particular employer and be seconded by 10 members from the same employer.
Elections are held by secret ballot.
HOW ARE MY INTERESTS PROTECTED?
The Fund is managed strictly in accordance with the Pension Funds Act of Namibia and overseen by NAMFISA [Namibia Financial Institutions Supervisory Authority] as regulatory body to ensure that your investment in the Fund is protected.
The money is managed by independent investment experts (Asset Managers) who are strictly controlled by the Pension Funds Act to make sure that the money you pay in remains a safe investment for you. This money cannot be used for any purpose other than providing benefits for you as a member of the Fund. The Board of Trustees regularly monitors the performance of these asset managers to ensure that you receive the best possible growth.
WHAT HAPPENS IF I AM TOO ILL TO WORK OR IF I BECOME DISABLED?
If, at any time before the compulsory retirement age of 65, you become too ill to continue working or you become disabled due to, say, an accident, you will be allowed to go on disability and will be paid a monthly disability allowance equal to 75% of your basic salary as at the time you became disabled. However, you will have to provide satisfactory medical evidence to the Fund that you can no longer work. There is a 3-months waiting period before the first payment of the disability income benefit shall be made
This disability allowance will normally increase every year to keep pace with rising costs. When you reach the compulsory retirement age, this disability allowance will stop and you will be paid a monthly pension as if you had been working until age 65.
WHAT HAPPENS IF I RESIGN?
You will be entitled to all the money that you and the employer have paid into the Fund together with interest earned, i.e. your share in the Fund. Any outstanding housing loan will be deducted from your share.
Remember, you will have to pay income tax on any cash refund. Since the money is meant for retirement, it should be reinvested in either a Namibian registered annuity fund or another approved pension fund in Namibia, in which case none of it will be lost to tax.
WHAT CAN I DO IF I WANT TO KEEP THE MONEY FOR RETIREMENT?
If you want to keep your share until you retire, you may choose one of the following options:
(a) To have your share transferred to the pension fund of your new employer;
or
(b) To have your share transferred to your own retirement annuity policy in your name with an insurance company of your choice, provided such an annuity or company is registered in Namibia.
If you exercise any one of these options you lose none of your share to tax.
WHAT HAPPENS IF I AM RETRENCHED BY MY EMPLOYER?
If you are retrenched by your employer you have the same options that are available when you resign. If you are 55 years or older, you may even choose the early retirement option.
WHAT HAPPENS IF I AM DISMISSED BY MY EMPLOYER?
If your employer dismisses you, you again have the same options as under retrenchment.
The Fund, in addition to providing for your retirement, helps to provide for your family in the event of your death. Money will be paid to your dependants that is, your husband or wife, your children who are younger than 18 and unmarried. If you do not have any dependants, the money may be paid to your beneficiaries, that is the person or persons you have chosen to receive the benefit. For this reason you are required to submit the Beneficiary Nomination Form, which you should review annually.
WHAT HAPPENS IF I DIE BEFORE I RETIRE?
The Fund will pay the following benefits to your dependants:
a. A cash sum equal to your full share plus five times your annual salary at time of death, split as far as legally possible in accordance with your beneficiary nomination form.
AND
b. Your surviving spouse will receive a life-long monthly pension equal to 40% of your last monthly salary;
PLUS
c.Your children who are unmarried and younger than 18 years will share a pension according to the number of children. This pension is also based on a percentage of your last monthly salary, as follows: One child will get 20%
Two children will share 30%,
Three or more children will share 40%.
If your only dependants are your children or if your surviving spouse dies, the children’s pension above will be doubled.
The pensions paid to your surviving spouse and your dependent children will increase each year to keep pace with rising costs.
IF I DIE AND LEAVE NO DEPENDANTS
In this case, ALL THE MONEY left in your share may be paid out to the beneficiaries that you have nominated, or your estate, subject to the provisions of the Pension Funds Act and the Income Tax Act.
This means that you will never leave any money in the Fund. ALL of it will be paid out.
WHEN DO I RETIRE?
You will normally retire on the first day of the month following your 65th birthday or at a date as prescribed by the Regulations of your Institution.
MAY I RETIRE EARLIER?
If your employer agrees to early retirement, you may retire at any age between 55 and 60. From age 60 to 65 you may voluntarily retire early without the consent of your employer.
MAY I RETIRE LATER THAN AGE 65?
This depends entirely on your employer. You may, if your employer agrees, continue working once you have reached the compulsory retirement age and retire at a later date however, you will lose the death and disability cover. You have to retire as an active (contributing) member of the Fund at age 70.
OTHER BENEFITS
To ease the financial burden placed on the family at a difficult time, the funeral insurance cover available to members and their dependants are as given in the table below. The cost of this benefit is included in the Employer’s contribution towards insured benefits and does not require additional contributions from members.
Benefit Levels
| COVER(N$) | |
|---|---|
| Member/Pensioner | 50 000.00 |
| Spouse | 50 000.00 |
| Children (14-21 years) | 50 000.00 |
| Children (6-13 years) | 40 000.00 |
| Children (0-5 years - including Stillborn) | 10 000.00 |
Should you pass away before retirement, your dependents(spouse + minor children) will remain covered until you should have reached retirement age.
Claims procedures
The underwriter committed themselves to settle claims within 48 hours after receipt of ALL documentation. The documentation required will be the following:
| DEATH OF MAIN MEMBER | DEATH OF SPOUSE | DEATH OF CHILDREN |
|---|---|---|
| Certified copies of: | Certified copies of: | Certified copies of: |
| ID document | Main member's ID | Main member's ID |
| Death Certificate | ID of deceased | ID of deceased |
| Completed Claim Form | Death Certificate | Death Certificate |
| Completed Claim Form | Completed Claim Form | |
| Marriage Certificate | Full Birth Certificate |
Please obtain the claim forms from the Human Resources Office.
FUND HOUSING LOAN PRINCIPLES
1.The Fund acknowledges the existence of the housing assistance schemes of the participating employers. Fund Housing Loans are not linked to the employer’s housing assistance scheme and therefore not subsidized by the employer.
2. The Fund will grant members a loan to assist with housing within the parameters of the Pension Funds Act (as amended) and the NAMFISA guidelines as issued.
3. Loans may be granted on homes in proclaimed areas as well as un-proclaimed areas under the following conditions:
The property must be registered within the Republic of Namibia.
Proof of ownership in proclaimed areas via a Deed of Transfer or for un-proclaimed areas a Certificate of Registration of Customary Land Right verified by the Ministry of Agriculture, Water and Land Reform.
The member and/or spouse must OWN the house and the property must be occupied by the member and/or dependants as defined in the Rules.
A housing loan will not be granted where the property concerned is not owned by the member or a spouse of the member.
Where applicable the requirements of the relevant local authority must be complied with i.e. approved building plans, etc.
Loans will only be granted on one property. A member may not have loans on two different properties at any one time. If a member wishes to get a loan on a different property the member must first settle the current fund housing loan.
A property registered in a Closed Corporation (CC) or company will not qualify for a fund housing loan.
4. Loans may be granted for the following scenarios:
To renovate the property.
To extend the property.
To erect a house on the property.
To buy a vacant erf in a proclaimed.
To buy a house in a proclaimed area.
To make a part payment to the Bank Home Loan Account (Bond Account).
Where a 99 year lease is provided.
5. As soon as the property on which the fund housing loan was granted is sold, the Fund housing loan must be settled immediately.
Members who fail to settle their Fund Housing Loan immediately after they sold the property may not take a further loan within five years of the settlement of the said loan.
6. The minimum amount that can be borrowed at any one time is N$10 000.00.
7. Any costs associated with the processing of the loan will be for the account of the individual member and will be capitalized as part of the member`s outstanding loan amount at that stage.
8. The monthly instalments will be deducted from the member’s monthly salary.
Arrears that might accrue as a result of monthly required instalments not being deducted and paid over to the Fund as required must be settled in full with interest within a maximum period of three months.
9. The loan is secured against the particular member’s share in the Fund.
10. A member may borrow up to ONE-THIRD of his/her total share in the Fund subject to a maximum monthly instalment equal to 25% of basic monthly salary and the loan amount may not exceed the market value of the property.
11. A loan granted in respect of additions, alterations, maintenance or repairs to a dwelling shall not exceed the cost of such additions, alterations, maintenance or repairs.
12. The Fund Housing Loan must be paid off in full by the time the member reaches normal retirement age i.e. 65 years provided that the maximum period over which the loan must be redeemed is 30 years. A member may elect a shorter repayment period but the 25% affordability rule as per 10 above will apply at all times.
13. Members with Fund Housing Loans may, on an individual basis, decide to increase at any time their minimum required monthly repayment.
14. In case of termination of membership prior to normal retirement age the outstanding amount of the Fund Housing Loan will be deducted from the member’s entitlement at time of exit from the Fund. Subject to circumstances this amount may be taxable.
15. A member may not take a Fund Housing Loan during the FIRST TWO YEARS of membership. Members who transferred from another Fund may be exempted.
16. With effect from 1 January 2022 a member may only take a further loan THREE YEARS after the loan date of the previous loan. Up until 31 December 2021 a further loan may be taken after TWO YEARS of the loan date of the previous loan.
17. In accordance with the Pension Funds Act interest will be calculated based on the prevailing Repo Rate, as determined by the Bank of Namibia, plus 4%.
Any future changes to the Repo Rate (whether upwards or downwards), as announced by the Bank of Namibia, will be applied as soon as practically possible to all housing loans of the Fund.
18. Documentary proof to confirm that the applicable requirements as stipulated on the application form are fully met must be attached to each loan application.
19. The duly completed application form with all the required documentation must be submitted to HR. Provided that the application is in good order, it must be forwarded to the Principal Officer for approval not later than the dates communicated with the participating Employers. Payments will be made as set out on the communique to the Employers and the repayment will start on the 15th of the month in which the payment was made.
20. The Fund retains the right to inspect the property to ascertain that the money was spent on the said property and utilized for the purpose it was requested.
If a member does not utilize the funds as intended, all future loans to the member shall be declined.
21. Members who submit any document that was tampered with or any document that is not authentic will be penalised.
For a first transgression the member may not get a Fund Housing Loan for the next FIVE YEARS as from the date the loan was declined as a result of the fraudulent documentation.If the member transgresses again, that member will never again obtain a Fund Housing Loan as a member of the Fund.
HOW DO I APPLY FOR A LOAN?
1. Check that your total share of the Fund is large enough to qualify. To do this, check your last benefit statement, or ask your Human Resources office for your current position.
2. Obtain a Housing Loan Application Form from the Human Resources office. Read which documents you will require for your particular application.
3. Complete the form and attach the relevant documents required.
4. Hand it to your Human Resources office.
Once your institution has approved your application and you have agreed to your repayment amount, then your application is sent to Universities Retirement Fund.
The whole process takes 6 to 8 weeks. Allow enough time when payments are promised to third parties.
OTHER IMPORTANT DOCUMENTS
Every year a Benefit Statement will be sent to you and it should be kept in a safe place. It is an important document that will tell you exactly how your RETIREMENT SAVINGS ACCOUNT is growing as well as the position of your HOUSING LOAN (where applicable).
It is important to ensure that all the details on this document are correct. Report any discrepancies to your HR Office who will inform the Fund.
The Fund, in addition to providing for your retirement, helps to provide for your family in the event of your death while still an active member. Money will be paid to your dependants that is, your husband or wife, your children who are younger than 18 and unmarried. If you do not have any dependants, the money may be paid to your beneficiaries, that is the person or persons you have chosen to receive the benefit. For this reason you are required to submit the Beneficiary Nomination Form, which you should review annually.
Although you are requested to advise the Trustees by means of a Beneficiary Nomination Form of how your death benefit under the Fund should be distributed in the event of your death, it must be remembered that these instructions are subject to the provisions of Section 37C of the Namibian Pension Funds Act.
The Trustees are thus guided in their decision by the provisions of the Pension Funds Act as well as the information contained on your beneficiary nomination form. It is therefore crucial that the information on this form is up to date and as correct as possible.
Please make sure that certified copies of all relevant information like marriage certificates and full birth certificates are on your personnel file with your Employer. In the unfortunate event that something might happen to you, the availability of these documents will expedite the payment to your beneficiaries.