The Government Institutions Pension Fund (GIPF) has made progress in preparation for the implementation of the Financial Institutions and Markets Act (FIMA).

The Act is designed to reform and consolidate the regulatory framework for non-banking financial institutions and markets in the country.

As part of its ongoing efforts to provide clear and updated information, the GIPF has updated its marketing and promotional materials to align with the communication standards advocated by the Financial Institutions and Markets Act. 

The proposal to restrict pension access until retirement, as outlined in the Act, had faced criticism. 

One of the key concerns is also the potential fees associated with borrowing against one's own savings.

The chairperson of the GIPF Board of Trustees, Penda Ithindi, explained that once FIMA becomes operational, there will be a transition period to ensure a smooth implementation of the new regulations.

A point of interest sparking debate is South Africa's two-pot retirement system, which divides retirement savings into three components.

This has ignited discussions in Namibia, where ongoing debates about FIMA have raised the possibility of implementing similar reforms.

In response to these discussions, GIPF's Chief Executive Officer, Martin Inkumbi, explained that regardless of whether a two-pot system or another model is adopted, it is imperative for Namibia's retirement system to adequately provide for pensioners.

He highlighted the need for a system that balances immediate financial needs with long-term financial security. 

The GIPF emphasised that its alignment with the FIMA Act has been supported by targeted awareness campaigns and revised corporate policies to ensure that the institution is strategically and operationally ready for the implementation of FIMA.