PUBLIC PENSION FUND MANAGEMENT AGENDA *Introduction *Good practices in industry * Results of GIPF * Short comings * Proposed regulatory changes *Closing Presenter: A.Jansen PUBLIC PENSION FUND MANAGEMENT GOOD PRACTICE INTRODUCTION
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*Good practices in industry
* Results of GIPF
* Short comings
* Proposed regulatory changes
*All pension funds are governed by the Pension Funds Act of Namibia of 1956.
*Around 400 registered pension funds
*We do not have a national pension fund covering all working citizens (shortfall).
*Registered funds covers 120 000 members of the 500 000 economically active Namibians.
(GIPF the fund I work for has approximately 70 000 members)
*Social pension (less than minimum wage) have 125 000 recipients.
1.Fully funded with assets invested in capital market(local and international)
Reg.28: 35% Namibian assets ; Forex restrictions max 15 % offshore
2. Annual audits by independent auditors
3. Annual and Tri-annual actuarial valuations
4.Prudent investment guidelines
4.1No investments in employer/sponsors
Registrar limited discretion to grant exemption
4.2Maximum & prohibited investments
e.g. equity/stocks max -75 %
Unlimited investment – 5 %
No investments in coins & valuable artifacts.
-Retirement Annuity Fund
-Guaranteed funds (insurance companies underwrite)
*Preferential tax treatment of the :
-the funds themselves
*Geographic: 15% International, 55 % RSA and 35% Namibia
*Across asset classes : 50-55 % Stocks , 30-35% Bonds 5-10% Real Estate and 5-10% Cash
5.REGULATIONS IN THE PENSION FUND ACT THAT IS IN PIPELINE
a)Funds must appoint own compliance officers
b)Changes to max holdings
c)Individual member choice
* for Funds going from DB to DC
* access to advisors
* suitable default portfolio
* compulsory information/education to members
5.REGULATIONS IN THE PENSION FUND ACT THAT IS IN PIPELINE (cont)
d) Funds compelled to seek expert advice
e)Compulsory to define,maintain and monitor investment policies
• Established as a juristic person
(to sue & be sued, collect own revenue)
• To exercise supervision, in terms of the act and other laws over the business of financial institutions.
•Revenues generated through levies on financial institutions under supervision.
• Private pension fund assets supervised including GIPF is in excess of 55 % of GDP
Thank you !