Govt accused of dragging feet
Government should implement the national pension fund plan immediately.
24 January 2019 | Local News
He made the comment recently when sharing his views on the ambitious plan that has been in the works for over a decade.
“The national pension fund is ten years too late, it is long overdue. I am disappointed that it took so long,” said Jauch. The idea of introducing a national pension fund is noble, Jauch felt, as it would assist many workers after retirement.
“The lack of urgency is something that must change; it is time to implement. The longer one takes to implement, the more people potentially end in despair post-retirement,” Jauch said.
The Social Security Commission said earlier this week that it was reviewing recommendations it had received.
“The revised policy is currently being updated by the national pension fund team for consideration and approval by the minister of labour and the management of the ministry,” said its spokesperson, Unomengi Kauapirura.
She added that the national pension fund could become operational this year still.
“If all project deadlines are met, the national pension fund should be fully operational by the middle of year 2019,” said Kauapirura.
Retirement Fund Solutions board chairperson Tilman Friedrich feels that the national pension fund should encompass three critical elements to make it work.
According to Friedrich, the Melbourne Mercer Global Pension Index has identified three primary and many secondary measures against which global pension systems should be measured. The three primary measures are adequacy, sustainability and integrity.
“Any proposed national pension fund model should be benchmarked against other similar social security schemes around the globe. It should aim to offer good benefits on a sustainable basis and should foster the trust and confidence of all participants,” Friedrich said.
“It serves no purpose to introduce an arrangement that does not answer positively to any of these three key preconditions,” Friedrich added.
He warned that a model duplicating the way pension funds are managed in the private sector could wreak havoc.
“It is in my opinion also important that in a country with scarce financial resources and skills, duplication should be avoided for the sake of preserving our scarce financial resources.
“The existing well-developed retirement savings industry should not be uprooted and replaced by something totally new, for the sake of preserving scarce financial resources and skills,” Friedrich said.
According to the SSC, 391 469 employed people did not belong to any pension fund in 2016.
Plans to establish a national pension fund go back as far as 1994 with the passing of the Social Security Act.