HRSM,Raises thumps of entities on Pension Scheme

By Andrew Mwanandiye Tembo…..

As a way of equipping extra knowledge on those in Human Resources management who could not handle financial benefits of people on new pensions scheme as required, the Human Resources Society of Malawi (HRSM) held a workshop with stakeholders for brief descriptions,on Friday in Blantyre.

Way back employees have been lobbying for changes in the Pension Act to enable them access a bigger share and they pushed for an increase in the lump-sum from 40 percent to 70 and allowed to access it before registering and promulgation was done in 2011.

In his speech the Human Resources Society of Malawi (HRSM) Secretary General Robin Kajasiche said, those employees who are responsible, need to be enlightened on how best they can explain the scheme to other employees about some of the provisions contained in the 2023 Pension Act to avoid confusions.

He has since urged those in Human Resources Management sectors to always adhere to the provisions in the pension act, saying that is the only way to escape the penalties which are in the new law.

“This workshop aims to equip employers or Human Resources Managers who are the trustees from various offices to do what is required as per the legislation.

“We had the Pension Act 2010, so, we are enlightening each other what is in the new pension act which started in March this year, so that no one should be left behind”

“I am impressed with the provisions contained in the 2023 Pension Act, they are providing financial security to the dependents” He added.

On her part, one of the workshop participants, a Human Resource Planning Officer in the Ministry of Mining Mphatso Luwanika Mfipa also commended HRSM for the workshop saying it has helped her to gain knowledge on what 2023 Pension Act is.

“We have gained a lot and I hope we will now be able to have a detailed explanation of what the Pension Act is to our employees,”Said Mfipa.

The new pension scheme Act also indicates that the waiting period for access of part of pension for someone that has lost a job is reduced from 6 months to 3 months and the person will be able to access 100 percent of what they contributed.

This further stipulates that those retired should be able to access 50 percent of the total contributions including interests accumulated at once and an employee should also be allowed to access 50 percent of total five years prior to retirement which is expected to help people prepare for retirement.

Early this year ,Reserve Bank of Malawi said Pension contribution arrears stood at K27 billion from 999 employees out of 3073 on the Nation Pension Scheme.