The Reserve Bank of Malawi (RBM) has urged employees in the country to be aware of their rights under the Pensions Act and ensure that they have been put on the National Pension Scheme by their respective employers.
The development comes at a time when the country is commemorating the pension awareness week under the theme Yes to Pension, no to Tension.
Speaking in an interview, RBM Chief Examiner of Pension and Insurance Regulation Kwagwanji Mangochi said that it’s a requirement that each employee has access to information about pension issues.
He said: “Make sure that you know about what is happening with your pension, because when you know about this information you will be able to make an informed decision as opposed to be waiting until you retire.
“So, as it is right now when you receive your payslip you need also to consult your employers about pension issues which the company is handling and how much money is there,” said Mangochi.
He further said that employers as key players in the provision of pensions under the Act, are being reminded that it is their responsibility to ensure that every employee is a member of the National Pension Scheme except those that are exempted by the Act.
Earlier this month, a motion to table the amendment of the act was passed in the August house. It allows the tabling of a private members bill which among other things proposes the increase of lumpsum payout by pension administrator upon retirement from the current 40 to 70 percent.
In addition to this, the amendment also propose that pensioners should be allowed to receive their money immediately after retirement other than waiting until they reach 60 years as it is in the current setup.
Reported by Emmanuel Chilemba