GIPF RULES AND

PROCEDURES
 TOPICS OF DISCUSSION
1. Fund Governance
2. Admission & Amendments
3. Resignations
4. Retirements

5. Death Benefits
- Death before Retirement
- Death after Retirement

6. Funeral Benefits
7. Membership & Valuation Data as per last valuation - 31 March 2021
8. General Requirements
9. Challenges experienced by the Fund
10. What the Fund expects from each Employer
11. What the Fund expects from each Member
12. Questions & Comments
FUND GOVERNANCE
 GIPF was established with effect from 1 October 1989

 The Fund administers pension benefits for Civil Servants and other
participating employers

 The Fund is governed by its rules; Pension Funds Act No. 24 of 1956; NAMFISA
Regulations and other applicable Acts i.e. Income Tax Act, etc.

 GIPF is a Defined Benefit Fund and therefore the benefits are guaranteed
Defined Benefit (DB) Defined Contribution (DC)
The benefits are defined and are based on a The contributions are defined, and the
formula. The Sponsor (employer) promises a benefits are based on experience. That is
benefit predetermined by a formula. what has been contributed by the Employer
and the Employee less risk/admin cost plus
investment returns

The risk of adverse investment and expense The risk of adverse investment and
experience is retained by the Sponsor (employer) expense experience is retained by the
member

The Benefit is known i.e. Retirement benefit Benefit unknown

ADMISSION
 Pension Benefit – Condition of service therefore compulsory for all
employees for participating employers

 Younger than 60 years

 Starting Date = Admission Date

 Monthly Contributions
- Employee = 7%
- Employer = 16%
- Total = 23%
Who qualifies to be a member of the Fund?

Eligible Employee
 Full time employee in the employment of a participating employer

Non-eligible Employee
 Paid solely by means of fees or allowances
 Does not qualify for an identity document i.e. younger than 16 years
 On contract which provides for the payment of a lump sum upon expiry thereof
 A seasonal worker, casual worker, relief or holiday worker
 Re-appointed after retiring from service
 Employed for a certain period or specific assignment
ADMISSION – DOCUMENTS

 ID Document (Member & Dependents)

 Certificate of Registration as a Taxpayer for Income Tax
 Marriage Certificate / Declaration for a Traditional Marriage
 Dependent’s Full Birth Certificates
 First Payslip / Extract of payroll (indicates proof of contributions)
ADMISSION – PROCEDURES
Admission Form to be completed by employer

 To be submitted within three months from date of admission

 Unique Pension Membership number will be allocated to the member

AMENDMENTS
Amendment form to be submitted by employer with proof of change

 Example of change & Proof

- Personal Particulars (i.e. ID, Surname)
- Employment Particulars (Transfers)
- Marital Status – Marriage Certificate
- DOB / ID Number – Old & New ID document

 Complete amendment form and indicate

amendment with Asterix*
RESIGNATION – RULE 7
Withdrawal / Benefits Options:

1. Cash Withdrawal (Rule 7.1)

- Benefits taxable
- Benefits include member portion, interest
2. Transfer Benefit to an Approved Fund (Rule 7.2)
- Pension / Provident Fund
- Preservation Fund
- Retirement Annuity Fund
3. Deferred Pension (Rule 7.3)
- preserved within the Fund
- minimum 10 years of service is required

Accrued benefit based on age, final salary and service period

Required Certified Documents
 ID Document
 Certificate of Registration as a Taxpayer for Income Tax
 Salary Advice / Last Payslip
 Salary Notches / Staff record card
 Proof of banking particulars
 Notification of Collateral Security*
 Permission for deduction of Debt*
 Request for Transfer of Benefits*

* If Applicable
RETIREMENT – RULE 3

A. Normal Retirement (Rule 3.1)

B. Early Age Retirement (Rule 3.2)

C. Early Ill Health (Rule 3.3)
D. Disability (Rule 6)
E. Late Retirement

F. Retrenchment (Rule 3.4)

A. NORMAL RETIREMENT
 Retire at age 60
- Member turns 60 on 5 October and will work until 31 October
- Retires with effect from 1 November

 Benefit Payable
- Lump sum (1/3 of total pension (tax free)
- monthly pension (2/3, lifelong pension, taxable if in excess of
N$50,000 pa = N$4,166-67 pm)

 Formula
- 2.4% x final average salary x years of service
B. EARLY AGE RETIREMENT

 55 years or older

 Permission of employer required

 Pension is adjusted by 0.25% for every completed

month that the member went early

 Benefit payable – Lump sum (1/3) & Monthly pension

C. ILL-HEALTH

 A member who is in ill-health of a protracted nature caused through no

fault of his/her own may retire early with the approval of the Trustees.

 Proof to the member`s ill-health by Medical Board, recommendation of

the Public Service Commission will be required.

 Benefit Payable – Lump sum (1/3) & Monthly pension

D. DISABILITY

 This event occurs when a member becomes totally and permanently disabled as
a result of the disease or illness prior to normal retirement date, to such an
extent such member can no longer pursue his/her own or similar occupation.

 Qualify for disability income benefit amounting to 75% of salary at date of

disablement.

 Remain full member of Fund, i.e. qualify for death, funeral benefit.

 Member can retire at 60 years or from 55 years upon submitting a written

request to the Fund.

 The member as well as the Employer are still required to contribute to the
Pension Fund.
E. LATE RETIREMENT

 With the approval of the employer a member may retire late

 60 - 67 years

 Member may opt to receive the benefits at 60 or wait until late

retirement date

 Benefit payable – Lump sum (1/3) & Monthly pension

F. RETRENCHMENT
 Can occur at any age

 Results from re-organization of the Employer

 Benefit Payable – Depend on the age and prospects of future employability of the
member
 Withdrawal benefit; or
 Normal Retirement Calculation, plus the shortest of:
1) 1/3 of Service
2) The difference between date of retrenchment and actual date of retirement
3) Period of 5 years

 Employer liable for Bonus Service

RETRENCHMENT Cont.
 Example (in case of retirement benefit): Member retrenched at age 40

 Bonus years:

(1) 1/3 x 22 (years of service) =7.3,

(2) difference between 40 and 60 years =20,

(3) 5 years

Bonus period = 5 years

RETIREMENT – DOCUMENTS

 ID Document
 Salary Advice / Last Payslip
 Salary Notches / Staff record card
 Certificate of Registration as a Taxpayer for Income Tax
 Marriage Certificate / Declaration for a Traditional Marriage
 Proof of banking particulars
 Medical Board Report*
 Public Service Commission / Employee Request letter*

* If Applicable
DEATH BENEFITS – RULE 4

A. Death before Retirement (Rule 4.1)

B. Death after Retirement (Rule 4.1 (2))
A. DEATH BEFORE RETIREMENT

 A death benefit consist of two benefits

- Tax-free lump sum of 2 x annual salary (paid in terms of S37C of PF Act)
- Children & Spousal pension (paid in terms of the Rules of the Fund)

 Lumpsum is distributed by Trustees and paid to dependents, nominees, etc.

 Pension
- Qualifying Spouse’s pension: 40% of annual salary, payable lifelong, plus
- Qualifying Children’s pension up to a maximum of 30% of annual salary for
married members
- Qualifying Children’s pension up to maximum of 60% of annual salary for
single members
DEATH BEFORE RETIREMENT Cont.
 A qualifying spouse: Married under Civil / Customary law

 A qualifying child – Monthly Pension

√ biological
√ legally adopted
√ stepchild who was substantially dependant on the member
√ Disabled children and students (18 – 25 years)
DEATH BENEFITS – DOCUMENTS
Required Certified Documents:

 Death Certificate
 Salary Advice / Last Payslip
 Certificate of Registration as a Taxpayer for Income Tax
 ID (Member / Spouse / Parents / Guardian(s) / Dependents / Nominees)
 Banking particulars (Spouse / Parents / Guardian(s) / Dependents / Nominees)
 Dependents Full Birth Certificates
 Marriage Certificate / Declaration for a Traditional Marriage
 Beneficiary Nomination form
B. DEATH AFTER RETIREMENT
 Pension guaranteed for 5 years / 60 months (guarantee period)

55 – Early Retirement 60

Guarantee Period of 5 years

60 – Normal Retirement 65

Example – Married Pensioner

 If pensioner dies at 61yrs, guarantee balance equivalent to 4 years of monthly
pension will be paid to the dependents / beneficiaries as a lump sum in accordance
with S37C of the PF Act

 If pensioner dies after guarantee period i.e. at 66yrs, 50% of monthly pension will
be paid to the qualifying spouse
DEATH AFTER RETIREMENT Cont.
Example – Single Pensioner

 If pensioner dies at 61yrs, guarantee balance equivalent to 4 years of monthly

pension will be paid to the dependents / estate as a lump sum in accordance
with S37C of the PF Act

 If pensioner dies after the guarantee period, for example at 66yrs, pension
ceases
FUNERAL BENEFITS
 Active, Retired & Member on Disability N$8 000

 Qualifying Spouse of active & member on disability N$8 000

 Qualifying child (1 – 18 years) N$3 000
 Qualifying child (18 – 25 years) N$3 000
 Qualifying child (<1 yr. including stillbirth) N$1 000

Payable per funeral

Payable within 24 hours

Not payable to Qualifying Spouse of retired member
FUNERALS – DOCUMENTS
 Death Certificate
 Salary Advice / Last Payslip
 Identity Document (Member & Beneficiary)
 Sworn Declaration / Executorships Letter
 Proof of Banking particulars (Beneficiary)

 Marriage Certificate / Affidavit(s) for Traditional Marriage (if applicable)

Claiming Procedures

 Employee / claimant to submit required documents, verify information and

sign the benefit claim form

 Employer to complete and forward Benefit Claim Form to the Fund without
delay
Valuation Data as per last valuation of 31/03/2021
Active Membership Statistics

Item 31-Mar-2021 31-Mar-2018

Number of Active Members 104 501 106 335

Salary Weighted Average Age 41 years 11 months 42 years 0 months

Salary Weighted Average
Past Service 14 years 2 months 14 years 0 month

Total Annual Salaries (N$) 18 854 275 261 16 550 289 426

Average Annual Salaries (N$) 180 422 155 643

Pensioners’ Statistics

Item 31-Mar-2021 31-Mar-2018

Number of Members 37 409 27 862

Total Annual Pensions (N$) 2 255 146 258 1 326 688 765

Pension Weighted Average Age 64 years 0 months 63 years 5 months

Average Annual Pensions (N$) 60 284 47 616

Disability Income Statistics

Item 31-Mar-2021 31-Mar-2018

Number of Members 705 854

Total Disability Income (N$) 63 939 511 75 291 809

Income Weighted Average Age 52 years 1 months 52 years 5 months

Average Annual Disability
Income (N$) 90 694 88 531
Pension & Disability Income Increases

Pension Disability Income

Date Increases Increases

1 April 2013 6.5% -

1 April 2014 7.5% 10.0%
1 April 2015 6.5% -
1 April 2016 7.0% 10.0%
1 April 2017 7.0% -
1 April 2018 5.5% -
1 April 2019
5.0% -
1 April 2020 3.5% -

1 April 2021 3.0% -

Investment Returns

Period (Over the Valuation Period) Return

Year ended 31 March 2013 24.28%
Year ended 31 March 2014 18.64%
Year ended 31 March 2015 16.46%
Year ended 31 March 2016 4.76%
Year ended 31 March 2017 4.93%
Year ended 31 March 2018 10.84%
Year ended 31 March 2019
5.86%
Year ended 31 March 2020
(5.92%)
Year ended 31 March 2021
26.64%

Average per annum 11.39% (8.05%)

Required Contribution Rate

Allocation Rate
Retirement Benefits 19.46%
Disability Benefits 2.63%
Death Benefits 3.60%
Resignation Benefits 0.67%
Funeral Benefits 0.06%
Fund Expenses 1.50%
Total Required Contribution Rate
27.92%
Less Member Contribution Rate
(7.00%)
Total Required Employer Contribution Rate
20.92%
GENERAL REQUIREMENTS
ACCEPTABLE DOCUMENTS
 Only authentic, certified and legible copies are acceptable

 Certified copies
√ certified by a Commissioner of Oaths
√ certification should be original
√ stamp of certifying office / officer
 Proof of Identity
√ Identity card
√ Valid Passport
√ Full birth certificate (for dependents only)
 Proof of Banking Particulars
√ Bank Statement (not older than 3 months)
√ Bank account confirmation Letter
√ GIPF Banking Details Form
Approved Deductions
Approved / allowable deductions from pension benefits (Section 37D
of the PF Act)

√ Normal / Arrear income Tax

√ Housing Loan / Collateral Security
√ Damages to employer due to theft, dishonesty, fraud, misconduct
√ Maintenance Claims
√ Medical Aid premiums
√ Insurance premiums
Challenges Experienced by the Fund

 Member’s apathy towards pension related matters

 Members with incorrect or without national documents
 Inaccurate member details i.e. conflicting date of birth
 Delayed submission of claims
 Submission of incomplete claims
 Non-adherence to procedures
 Unknown nominated Beneficiaries that cannot be traced

 results in payment delays

Clients' dissatisfaction
What does the Fund expect from each Employer?

 Ensure that employees understand their conditions of

employment & benefits (Pension, Medical Aid, etc.)

 Ensure that members personal records are updated & efficiently

stored (ID, Marriage Certificate, full birth certificates, Beneficiary
nomination forms, etc.)

 Complete and submit Pension Forms timeously (admissions,

amendments, benefit claims)

 Have knowledge and be in possession of the Rules of the Fund,

Administration manual.

 Coach, guide and prepare employees for pension events i.e.

resignation, retirement, death, etc.
What the Fund expects from each Member?

 Regularly Update your personal file

- Identity document (member & dependents)
- Applicable documents (marriage certificate, divorce letter, tax certificate)

 Regularly update your beneficiary nomination form

- Guides the Trustees on your wishes as a member of the Fund
- Must be updated on a regular basis
- Must be kept in your employee file
- Submitted to the Fund with a death benefit claim
What the Fund expect from each member Cont.…..?

 Receive & Review your Benefit Statement

- Statutory document that is issued once a year to each member

A member can also request the statement directly from the Fund
it is your right and please demand to receive yours

- Reflects a member’s pension benefits and is based on the correctness of the

member’s personal details i.e. DOB, salary, etc.

- Member must review correctness of info and consult HR office for any
amendments

 Register on the Member Online Portal & Visit our website regularly

 Know your Fund rules

- An informed & knowledgeable member is a Wise member

Contact us at any of the following offices

Windhoek +264 61 2051000

Ondangwa +264 65 241381/2
Oshakati +264 65 220587/42
Outapi +264 65 202001/2 /3
Eenhana +264 65 263 846
Katima Mulilo +264 66 254589/254223
Gobabis +264 62 564098
Rundu +264 66 256820/1
Otjiwarongo +264 67 307078/9
Keetmanshoop +264 63 226021
Swakopmund +264 64 461735/42
www.gipf.com.na | [email protected]
Contact us at any of the following offices

Nkurenkuru +264 66 258 006

Grootfontein +264 67 240 491 /641
Opuwo +264 65 277 038 / 039

www.gipf.com.na | [email protected]
Questions & Comments