ECAM consults on proposed amendment to Pension Act

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The Employers’ Consultative Association of Malawi (ECAM) on Thursday held a consultative workshop on the proposed amendment to the Pension Act for 2010.

Karim: Expounding the Proposed Pension Act before ECAM Membership Karim: Expounding the Proposed Pension Act before ECAM Membership

Among others, the Bill seeks to amend the Pension Act of 2010, to address implementation challenges, enhance Reserve Bank of Malawi’s supervisory oversight over entities regulated under the Act and remove disparities in the Act.

And according to the chief facilitator of the workshop, Osman Karim, the former Chief Executive Officer for Nico Life, some of the new provisions in the proposed amendment is the introduction of provision to allow employees access to assets in form of pledge so that they can acquire a primary house.

“That’s significant because when we were discussing the Pension Act in 2010, there was quite a cry that part of retirement planning- a solid house can assist in the planning-it was not never taken then but they are bringing it back which probably shows that we are getting matured, as a country, we have gone a long way in our establishment of the Compulsory Pension and that should be a welcome event.

“They have also brought in new concepts; the provident fund as well as the Personal Pension Fund that are now available to the employees but also to any individual who wishes serve for retirement. These new two products should encourage SMEs to also start thinking about their retirement and use these two as vehicles for savings. This is very good because for once people outside the employment circle are given instruments to encourage serving-for-retirement culture,” said Karim.

Karim further encouraged other stake-holder to contribute to the proposed act so as to transform the way pension is managed in the country.

And according to ECAM Executive Director Beyani Munthali, the workshop was held to seek views from the membership of the organisation regarding amendments to the Pension Act.

“What is next is that our advocacy and robbing committee will then review the views that have been presented by the employers before we submit our position to the regulator. Most importantly I think we will also be requesting that there should be more stake-holder engagement because there are silent issues out of this amendment that really needs to be tabled before more stake-holders. But from our perspective, we have gone through what will affect employers positively and negatively,” said Munthali.

About 30 officers drawn from various institutions across the country attended the workshop.

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