1 / 6

Understanding Pensions - The Malawian context

Understanding Pensions - The Malawian context. Rationale and Policy Objectives. RESERVE BANK OF MALAWI. outline. What is pension? Reforming pensions Objectives of the Pensions Act. What is Pension?. In simple terms; Income for retirement Online Oxford Learner’s Dictionary;

kizzy
Download Presentation

Understanding Pensions - The Malawian context

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Understanding Pensions - The Malawian context Rationale and Policy Objectives RESERVE BANK OF MALAWI

  2. outline • What is pension? • Reforming pensions • Objectives of the Pensions Act

  3. What is Pension? • In simple terms; • Income for retirement • Online Oxford Learner’s Dictionary; • An amount of money paid regularly by a government or company to somebody who is considered to be too old or too ill/sick to work • Merriam-Webster online dictionary; • Fixed sum paid regularly to a person, as • Wage • Gratuity granted (as by a govt) as a favour or reward • One paid under given conditions to a person following retirement from service or to surviving dependents

  4. What is Pension? …cont’d • So, typical features of a pension must include: • An element of service/work (self employment) • Retirement from service through any of the following fragilities; • Too old • Too ill/sick • Death • Given conditions • Regular payment • Clearly, pension focus is on security in retirement • Other financial products to meet different needs • Only possible if the context is set right through pension reform

  5. Reforming Pensions • Reform objectives range from any of the following: • Social security - increase coverage and benefits; • address the growing fiscal burden; • strengthen supervision, regulation, governance etc. • taxation • Experience of other countries taken into account • Situation was worse for Malawi • Severance allowance in Employment Act, 2000 • Pension Act, 2011 • Mandatory National Pension Scheme

  6. Objectives of Pension Act • Section 4 of Pension Act, 2011 states the following as objectives; • ensure that every employer to which this Act applies provides pension for every person employed by that employer; • ensure that every employee in Malawi receives retirement and supplementary benefits as and when due; • promote the safety, soundness and prudent management of pension funds that provide retirement and death benefits to members and beneficiaries; and • foster agglomeration of national savings in support of economic growth and development of the country

More Related