GIPF gears up for FIMA strategic operational readiness

Ready for legislation
The Government Institutions Pension Fund is ready to implement the FIMA regulations, according to its board chairperson, Penda Ithindi.
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The Government Institutions Pension Fund (GIPF) of Namibia is proactively preparing for the anticipated rollout of the Financial Institutions Market Act (FIMA), with comprehensive measures already underway, according to board chairperson, Penda Ithindi.

Speaking at the launch of the fund’s 2024 annual report, Ithindi outlined how GIPF has mobilised resources and revised its strategies to ensure a seamless transition once the legislation takes effect.

"We have also looked at all our departmental activities and statutory obligations, department by department, and say that we must assess our readiness at department level to make sure that we have that level of readiness when FIMA comes, so I have much comfort, of course the proof as they say is in the eating, to say that the Fund has invested a lot and achieved progress in the readiness of FIMA if FIMA is put into operation," he said.

From an operational standpoint, Ithindi said the transition period for FIMA's adoption would help entities track compliance and implement.

"I must also state that of course in terms of the transition to having FIMA coming into operation, there is of course the transition period that would accompany FIMA getting into operation. In other words, it is not expected that the regulator would say or the policy maker that FIMA is tomorrow, but rather there is a transition period to say that in this number of months, FIMA will come into operation and by and large, the Fund is really, really ready," he said.

FUND PERFORMANCE

Meanwhile, launching the report, Ithindi said the GIPF delivered an outstanding performance as the Fund Asset Value stood at N$167 billion during the period under comparison to N$151 billion, an increase of 11%.

The Fund received N$4.8 billion in contributions (up by 3% compared to the prior year. Whereas benefits paid stood at N$6.3 billion in 2024 which signifies a decrease of 9% compared to the prior year. Investments managed by investment managers stood at N$117.1 billion, and N$10.1 billion for direct investments and the GIPF treasury portfolio was N$40 billion for the period under review.

During the period under review the Fund's active membership count stood at 99 722 an increase of 2.24% from 97 512 in 2023. Benefit payments decreased by 9% to N$6.3 billion compared to the corresponding period ending March 2023 whereas N$6.9 billion was paid in pension benefits, translating into a total decrease in benefits payments of over N$585 million. The benefit contribution ratio is equivalent to 132%. The cost-to-serve ratio is at 1.9% (from 1.78% in the past year).

The Fund’s investment return has increased 13.2% to N$18 billion compared to an increase of 7.7% (N$6.5 billion) in the prior year. The increase is attributed mainly to investment returns during the period under review.