The Contributory Pension Scheme introduced by Malawi Government has led to complaints from civil servants.
Teachers Union of Malawi (TUM) has expressed concern for being sidelined in the processes involving the new Contributory Pension Scheme.
In a letter written by TUM and signed by its Secretary General Charles Kumchenga addressed to Ministry of Finance, the teachers’ body has said that the exclusion of the body in the process of new pension fund issue is unjustifiable.
“I wish to inform you that I have received the contents of your letter with great resentment and protest. This is so because the process and progress highlighted and so far achieved have completely neglected involvement of Teachers Union of Malawi, which is a legitimate body representing all teachers in the public sector,” reads the letter.
TUM has in the letter said that using Civil Service Trade Union (CSTU) because it represents all civil servants is a mockery since matters involving teachers in the country are handled specifically by TUM.
“I wish to clearly point out to you that regardless of the fact CSTU is the body that represents civil servants. It is undisputable fact that Teachers Union of Malawi represents all the teachers, who also form the largest percentage of the government workforce and any attempts and/or deliberate move to sideline such a body is a mockery of the whole thing and an ignition of an industrial action too difficult to calm,” reads the letter.
TUM has further asked government to improve the involvement of the teachers’ body in the whole process of the new pension fund as failure to do so will make all teachers in the country to refuse the pension fund.
Meanwhile, some teachers have complained about the new pension scheme saying it is milking them.
One teacher told Malawi24 that he just heard that teachers who have not reached 35 years in the service will be deducted a certain amount for their pension and when he received his salary this month he noticed that K5000 had been deducted.
According to the teacher, some teachers have seen their salaries cut by K15,000.
“l think government hasn’t come out clearly on how this Pension Contributory Scheme works. I have less information but the deductions have already started this month on top of what we were being deducted. l think there is less sensitization to us as owners of the money,” he said.
According to a letter Malawi24 has seen, effective July 1, 2017, all new civil servants and those aged below 35 will move to the new Contributory Pension Scheme.
“This implies that all employees in the Contributory Pension Scheme will be contributing a minimum of 5% of their monthly salary while government as employer will be contributing 10% of an employee’s monthly salary to the scheme,” says part of the letter from Secretary for Human Resource Management and Development addressed to Principal Secretaries.
According to the letter, the money taken from the contributions will be deposited to the Contributory Civil Service Pension Scheme.
The letter says government appointed Old Mutual as administrator of the scheme.
Meanwhile, government says it will conduct sensitization meetings to inform civil servants about the scheme.