GIPF holds N$64 billion for active members
55-60 age band dominates the chart
The Fund is financially sound as valuation revealed liabilities and reserves of N$118.60 billion, while the actuarial value of the assets was N$135.482 billion.
As at 31 March 2021, the government institutions pension Fund (GIPF) total liabilities for 109 568 active members stood at about N$64 billion, compared to N$61.6 billion recorded in 31 March 2018. This was revealed in the actuarial valuation report launched on Friday.
According to the report, active members between the ages of 55-60, 50-54,45-49 are owed N$18.4 billion, N$15.2 billion and N$10.8 billion, respectively.
In terms of gender, interestingly, the fund owes both males (54 784) and females (54 784) the same amount of about N$33 billion.
Overall, the Fund’s valuation revealed liabilities and reserves of N$118.60 billion, while the actuarial value of the assets was N$135.482 billion. The actuarial surplus amounted to N$16.522 billion as at the valuation date.
“The valuation results show a funding level of 113.89% as at the valuation date and we can consequently certify that the Fund is currently financially in a sound condition,” the report reads.
This is an increase from a funding level of 100.70% as at the previous valuation date (31 March 2018).
The Fund’s practice over previous valuations have been to pay additional amounts to exit from the Fund, reflecting a proportion of surplus determined from the funding level, which is 13.89% of the fund.
“We note that that the current internal funding policy guideline of the GIPF sets out the board’s intent to implement a benefit security margin of between 1% to 5% if liabilities, after contingency reserves,” the report added.
The report recommended that given the surplus in the Fund, the trustees should consider additional amounts to all exits from the Fund.
In addition, the report recommended that the additional amounts be set in the range from 8.89% to 13.89% of liabilities, depending on the implementation of the benefit security margin.
Moreover, the trustees should continue to monitor the employer contribution reserve over time to assess its sustainability for financing the subsidy and smoothing the required contribution rates.
“We recommend that the reserves be maintained at the same level of reserves as a proportion of liabilities as was held at the previous valuation date.”
Lastly, the report recommended that trustees consider reviewing the annuity and withdrawal factors that are used to calculate member benefits in order to align them with the revised long assumption.
“We further that the trustees consider establishing a formal governance policy which will set out the formal action and outcomes from the review of these factors on a triennial basis.” [email protected]
According to the report, active members between the ages of 55-60, 50-54,45-49 are owed N$18.4 billion, N$15.2 billion and N$10.8 billion, respectively.
In terms of gender, interestingly, the fund owes both males (54 784) and females (54 784) the same amount of about N$33 billion.
Overall, the Fund’s valuation revealed liabilities and reserves of N$118.60 billion, while the actuarial value of the assets was N$135.482 billion. The actuarial surplus amounted to N$16.522 billion as at the valuation date.
“The valuation results show a funding level of 113.89% as at the valuation date and we can consequently certify that the Fund is currently financially in a sound condition,” the report reads.
This is an increase from a funding level of 100.70% as at the previous valuation date (31 March 2018).
The Fund’s practice over previous valuations have been to pay additional amounts to exit from the Fund, reflecting a proportion of surplus determined from the funding level, which is 13.89% of the fund.
“We note that that the current internal funding policy guideline of the GIPF sets out the board’s intent to implement a benefit security margin of between 1% to 5% if liabilities, after contingency reserves,” the report added.
The report recommended that given the surplus in the Fund, the trustees should consider additional amounts to all exits from the Fund.
In addition, the report recommended that the additional amounts be set in the range from 8.89% to 13.89% of liabilities, depending on the implementation of the benefit security margin.
Moreover, the trustees should continue to monitor the employer contribution reserve over time to assess its sustainability for financing the subsidy and smoothing the required contribution rates.
“We recommend that the reserves be maintained at the same level of reserves as a proportion of liabilities as was held at the previous valuation date.”
Lastly, the report recommended that trustees consider reviewing the annuity and withdrawal factors that are used to calculate member benefits in order to align them with the revised long assumption.
“We further that the trustees consider establishing a formal governance policy which will set out the formal action and outcomes from the review of these factors on a triennial basis.” [email protected]
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