The Registrar of Financial Institutions Reserve Bank of Malawi (RBM) Governor: Endorsed Press Corporation Group Pension Fund to enhance Programmed Withdrawal Service

Posted On 13 Nov 2021

By Abdul Rahman Bangura–

NEW AFRICA DAILY NEWS (NADN) Freetown, Sierra Leone – Press Corporation Group Pension Fund’s Principal Officer, Bidronce Chiphaso, in a consultation on Thursday, November 11th, 2021 announced, the improvement mean a lot. He explained that their programmed withdrawal option is a strategy by which resigning from employees shall, in line with authorized decumulation criteria, collect their retirement benefits in periodic sums spread throughout the length of their computed life span.

“Time has come for willing retiring members to take control of their retirement funds and participate in decision making and management of their retirement funds. Eligible retiring employees will have the freedom of choosing between either annuities or our programmed withdrawal option as their preferred decumulation option on retirement.”

“Annuities are common on the market but there was a scarcity of approved providers for programmed withdrawal. This development will provide an alternative decumulation option for retiring members who do not prefer an annuity on retirement,”Chiphaso remarked.

He wishes that, other licensed pension administrators would contemplate administration of programmed withdrawal and offer options to retiring members as is the spirit of section 67 (1)(a) of the Pension Act, 2010.

Reserve Bank of Malawi (RBM) pension and insurance regulation principal examiner Pachalo Luhanga stated that, the nation’s pension sector proceeds to face substantial adherence issues particularly on non-placement of employees on pension and non- remittance of pension payments.