New pension scheme causes a stir

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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.

Malawi

Kumchenga: teachers were not involved

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.

 

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56 Comments

  1. Ku Malawi chilichonse ndi choipa tsopano. sindikudziwa kuti nkhanza zimenezi adzasiya liti galu ameneyi. Adaphunzira mosavuta ndi angwazi lero angodzikundikira chuma pomatifinya. Koma tsiku lina dzanja lidzalemba ndipo anbuye adzalowerera ndithu.

  2. zamanyi zeni zeni kodi inu you can’t learn a lesson plz the one who decide and made implementation of this he is above 35 and they know that their not negatively affected ,,,,,, sure ndithu another gvt era

  3. Money for campaign, you cadet you will fall down in 2019,your green card is waiting for you,days are numbered, enawa amalandila bwanji pension without deduct 5pin yo, theft.

  4. Give everyone his/her pension already accumulated and then you can start this contributory to those who will be eager to join it. DPP yafikapo, kutibera mwaonjeza. Increment 2pin, msonkhano 7pin, now pension contribution 5pin, is this fare, wake up Malawi work up.

  5. Clueless Mutharika as called by Chakwera leader of opposition..kkkkk.. Don’t finish these drivers of your economy, you will regret if continue doing so.

  6. Alomwe omwe munavotera chifukwa ndi wa kwanu muli pompatu kulira nawo and come 2019 mudzapanganso zomwe zija. Musalire apa. Osangokhala bwanji?

  7. Vuto a Malawi sitichedwa kuiwala. Honestly mmene anatilizira Bingu nkhani za fuel ndi forex muja I didnt expect Malawians to vote for DPP in 2014. Malilidwe ake anali omwewa. No difference at all. Kwinaku tisamangoti amaberaa vote ayi. Kubera kuja nkulinga utawapatsa poyambira. Lets hope kulira ukuku kusadzaiwalike come 2019.

  8. Ndizowawa akudula utagwira ntchito 9 yrs koma chifukwa sunafike 36 yrs. Thought akanatipatsa zathuzo ndi kuyamba tonse bwinobwino. Wina wagwira zaka zochepa koma osamudula ati poti Ali ndi zaka zoposa 35 zobadwa.

  9. civil servants…I mean civil slaves we’ve had enough of these outcries,the time to solve this is just at the tail end of our finger.I think we will solve this out 2019.we shall solve this trust me,

  10. To u kumchenga, we need immediate meetings on this countrywide. Msonkho womwe tikudulidwa its about K 18000, Tum nayonso idule pomwepo, chilima ndi mzake pitala adulenso K5000. Why milking the thin cow??

  11. the government is there not to develop the country but to eat the money for development.#politicians are Fools & liars

  12. Muntharika,muntharika mutharika,mutharika..pliz give ppo a break..why are you squezing civil servants left n right? Tipumirekuti?.. eeee..koma bwanawa tidzawakumbuka nchani??

  13. why poor people keep on complaining….the more they complain, the more the rich politicians are happy for the poor people’s misfortune and keep on torturing them. God have mercy!!!

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