2025-07



Issued July 2025

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In this newsletter...
	Benchtest 06.2025 – Note on the system conversion, the default portfolio vision for the future and more...

Jump to...
	Important notes & reminders In this newsletter... A message from the Managing Director Tilman Friedrich's industry forum Compliment Benchmark: a note from Günter Pfeifer	News from RFS Legal snippets Snippets for the pension fund industry Snippets of general interest And finally...


IMPORTANT NOTES AND REMINDERS

	NAMFISA levies Funds with July 2024 year-ends must submit their 2nd levy returns and payments by 25 August 2025; Funds with January 2025 year-ends must submit their 1st levy returns and payments by 25 Auguts 2025; and Funds with August 2024 year-ends must submit their final levy returns and payments by 29 August 2025. Housing loan interest rate basis changed in July The Minister of Finance changed the basis for setting the interest rate on direct housing loans from repo plus 4% to repo plus 2.5%, effective as of 1 July 2025, as per Government Gazette No. 8675 of 1 July 2025.. Registered service providers Certain pension fund service providers must register with NAMFISA and submit regular reports to the authority. Download a list of service providers registered as of June 2024, here...	Retirement calculator Use our web-based retirement and risk shortfall calculator for your retirement planning. Find it here... If you need help with your financial planning, get in touch with Annemarie Nel (tel 061-446 073) Christina Linge (061-446 075) Dennis Fabianus (061-446 098) Toolbox for trustees RFS provides comprehensive support for trustees. Find a list of download documents to assist with the governance and management of private funds, registered as of June 2024, here...


IN THIS NEWSLETTER...

	In this newsletter, we address the following topics:

	In a ‘Note From the Managing Director’, read A Note on the Status of Our System Conversion In 'Tilman Friedrich's industry forum' we present...In Compliments, read... Monthly review of portfolio performance – 30 June 2025 The Benchmark Default Portfolio – A Vision for the Future The FIM Act a new start: RF.S. 24, RF.S. 25, and RF.S. 26 Can an Executor Sign an Admission of Liability for a Deceased Member? RFS mourns the Passing of Pierre Maré In Compliments, read... Compliment from a Former Member In 'News from RFS', read about... Saying goodbye is never easy RFS Welcomes New Trainees RFS Proudly Sponsors the NUST Netball Team NBC Reappoints RFS In 'Legal snippets', read about... Can a Death Benefit Become Unclaimed? Adjudicator Bars Unlawful Deduction from Retiree’s Monthly Benefits	In 'Snippets for the pension funds industry,' read about... Directors’ Liability for Pension Contributions: Lessons from SA Relevant under the FIMA Planning for Life after Work: What to Budget for In ‘Snippets of general interest', read about... How intrinsic and extrinsic motivation shape high-performance organisational cultures The Underinsurance Crisis And make a point of reading what our clients say about us in the ‘Compliments’ section. It should give you a good appreciation of who and what we are! As always, your comment is welcome, so open a new mail and drop us a note! Regards Tilman Friedrich


A NOTE FROM THE MANAGING DIRECTOR

A Note on the Status of our System Conversion

	As our clients and many of you know, we at RFS have been transitioning to the new Everest pension fund administration platform—a change designed to enhance the efficiency, security, and flexibility of our services. While we fully recognise that such a significant shift can come with challenges, we are confident that this move will ultimately provide greater benefits for all involved. Over the years, we’ve always strived to avoid disruptions. When our former Managing Director, Tilman Friedrich, once stated that we would never relocate offices or implement a new system again, his concern was to maintain the high service standards that you’ve come to expect. However, as with any evolving business, we reached a point where change was unavoidable. Despite some initial disruptions, as in the case of moving our offices 15 years ago, we’ve always bounced back stronger. This time, it's the administration system that is making a leap forward. The decision to adopt the Everest platform was driven by our foresight into the growing digital demands within the pension fund landscape. The evolution of the regulatory environment, particularly the FIMA, requires an increasingly sophisticated and robust approach to fund administration. Thankfully, we’ve had the opportunity to implement this system ahead of these new pressures, ensuring we are system-wise fully equipped for FIMA and prepared for the future. We are pleased to share that the transition for our employer-sponsored funds, which began two years ago, is now largely complete, with many funds already operating seamlessly on the Everest platform. These funds have passed their first audits and actuarial reviews, not without some hiccups. It is, nevertheless, a testament to the dedication of our team in ensuring accurate data migration and maintaining system integrity. While Everest is a leading South African platform, we encountered several unexpected differences between our Namibian requirements and Everest’s design, which necessitate system adjustments and adaptations. We know that this has caused some disruptions for some of our clients, members, and pensioners, and we sincerely regret any inconvenience this has caused. Our team worked tirelessly to resolve issues as they were experienced and reported to us. We are deeply grateful for the patience and understanding that our clients have shown so far. The road to smoother operations is now well underway. We have learnt a lot from the initial audit and actuarial reviews. We are confident that our staff, our clients, and fund members will begin to experience the full benefits of Everest’s cutting-edge functionality. We believe that these improvements will ultimately streamline operations, enhance service delivery, and provide a better overall experience for everyone involved. As we look to the future, we do so with great excitement and anticipation. The Everest platform is a key milestone in RFS's journey, and we are proud of the progress we’ve made so far. Thank you for your continued patience, trust and support as we navigate this exciting transition. Together, we are building a stronger, more resilient future for pension fund administration in Namibia.


TILMAN FRIEDRICH'S INDUSTRY FORUM

Monthly Review of Portfolio Performance to 30 June 2025

	In June 2025, the average prudential balanced portfolio returned 1.9% (May 2025: 2.5%). The top performer is the NAM Coronation Balanced Plus Fund, with a return of 2.8%, while the Investment Solutions Balanced Fund, with a return of 1.2%, takes the bottom spot. NAM Coronation Balanced Plus Fund took the top spot for the three months, outperforming the ‘average’ by roughly 2.8%. The Lebela Balanced Fund underperformed the ‘average’ by 2.5% on the other end of the scale. Note that these returns are before (gross of) asset management fees. The Monthly Review of Portfolio Performance to 30 June 2025 reviews portfolio performances and provides insightful portfolio analyses. Download it here...

The Benchmark Default Portfolio – A Vision for the Future

	Benchmark’s portfolio restructuring is more than just a tactical response to changing market conditions—it’s a forward-looking strategy designed to ensure long-term sustainability and superior performance for its members. By increasing equity exposure, reducing costs, and implementing specialised management, the fund has positioned itself to better meet the needs of its members in the post-pandemic era. Looking ahead, the Benchmark Retirement Fund has become a beacon for how pension funds should evolve in the 21st century. While the future of global investing may be uncertain, Benchmark has developed a portfolio structure that enables flexibility and growth, regardless of the market environment. For members, this means peace of mind, knowing that their retirement savings are in good hands, irrespective of what the future holds. Ultimately, while conventional investment wisdom may be put to the test in the coming years, Benchmark’s approach is rooted in long-term resilience and adaptability, ensuring that its members remain well-positioned to navigate whatever the future may bring. Read paragraph 6 of the Monthly Review of Portfolio Performance to 30 June 2025 for our views on investment markets and global political developments. It also reviews portfolio performances and provides insightful analyses. Download it here...


The FIM Act – a new start Contributed by Carmen Diehl, C.A.(Namibia), Senior Manager: Risk Management and Compliance

	The FIMA (Act 2 of 2021) was promulgated in Government Gazette no. 7645 on 1 October 2021. The Minister of Finance has not yet set an effective date. In the last several newsletters and the next few issues, we have presented and will continue to provide a brief overview of the latest status on standards and regulations. This summarises the main provisions of draft standards and regulations under the FIM Act and implications for retirement funds. Standards Chapter 5: Retirement Funds RF.S.5.24 Manner and form of application for registration of a fund This standard applies to all funds and applicants, as well as their boards, principal officers, and fund administrators. Summary: An application for registration of a fund must include a completed application form, in the form of the Schedule to this standard, signed by the board or interim board, along with: The fund's rules, certified by the chairperson and another board member. A certificate of financial soundness from a valuator. Proof of the authority under which the fund is established. Proof of payment of the registration fee. Additional documents as specified in the Schedule, including compliance with fit and proper requirements and independence standards. NAMFISA may reject incomplete applications, but must allow applicants to provide the required information within a specified period. NAMFISA may request further information or documents as needed for processing the application. Applicants or their representatives may be required to appear before NAMFISA for a personal representation regarding the application. Applications must be submitted electronically via the NAMFISA ERS, with manual submission of specified documents if directed by NAMFISA. What to do: Existing retirement funds must make an application for registration within 12 months after the date of commencement of chapter 5 of the FIM Act; and will thus have to apply as set out in RF.S.5.24. Funds should establish a list of all documents required for registration as per this standard. The format of the rules is prescribed in RF.S.5.4. Funds are thus advised to draft FIMA-compliant rules in anticipation of the effective date. RF.S.5.25 Form of certificate of registration for a fund This standard applies to all funds registered under the Act. Summary: The standard prescribes the format of the certificate of registration that NAMFISA must issue to the fund. What to do: No action required by the standard from retirement funds. RF.S.5.26 Governance of retirement funds This Standard applies to all funds registered in terms of Chapter 5 of the Act. This Standard applies only to the extent that the subject matter dealt with in this Standard is not dealt with specifically in the Act or regulations made by the Minister or standards issued by NAMFISA. Summary: The board must provide ethical leadership based on values like responsibility, accountability, fairness, and transparency. Board composition should be diverse in qualifications, expertise, and demographics, and the board must be comprised of persons who are Namibian citizens or permanent residents, and who are ordinarily resident in Namibia. The chairperson of the board must lead impartially and ensure regular performance evaluations. Trustees must receive training on legislative, regulatory, and governance principles. Conflicts of interest must be reported, and operational and oversight responsibilities must be separated. The board retains ultimate responsibility even when functions are delegated. To ensure independence and reduce the risk of familiarity, no trustee may serve for more than three consecutive terms, and the tenure for one term may not exceed a period of three years. After serving the maximum of three successive terms, a minimum period of at least three years must lapse before the same person may be appointed or elected as trustee again. An auditor may not serve for more than six consecutive years and must comply with the prescribed partner rotation requirements. A valuator for a defined contribution fund may not serve for more than nine consecutive years. The board should consider the benefits of an internal audit function. The board is responsible for setting and monitoring the fund's strategy. Adequate internal controls must be in place to ensure compliance with objectives and laws. The board may seek expert advice when necessary and must ensure its independence and quality. The board must have a risk management policy and ensure appropriate risk responses. Regular reviews of services and costs are required to ensure efficiency. The board must ensure investment options are appropriate and members are informed of risks. The board must ensure insurance policies are reasonable and protect members' benefits. Trustees must have access to all relevant information, and confidentiality must be maintained. The board must manage IT risks and ensure alignment with the fund's objectives. The board must maintain independence in its relationship with the employer or sponsor. Relevant information must be disclosed to stakeholders in a clear and timely manner. Financial donations and subsidisation of expenses by the fund administrator or sponsor are prohibited. NAMFISA may take enforcement action for non-compliance with the standard. What to do: Funds must carefully evaluate whether they will be capable of meeting such high standards and what resources they may need. Once a fund has concluded on the resources it needs, it must assess whether it is financially viable to incur the cost of such resources. If a fund concludes that it is not financially viable to incur the cost of such resources, it should take steps to move into an umbrella fund.

Can an Executor Sign an Admission of Liability for a Deceased Member? Contributed by Vincent Shimutwikeni, B. Juris, LLB (honours), CGRC-BP™, Manager: Legal Support

	Background: The employer of a pension fund member claims that the member defrauded them. The member committed suicide, and the employer did not obtain a written admission of liability or a judgment under Section 37D. Due to the member's death, the employer's pension fund must distribute the death benefit arising from the member's passing to their beneficiaries. The employer believes that the executor may sign the admission of liability on behalf of the deceased member as required under Section 37D, and can then instruct the fund to deduct the loss resulting from the member's fraudulent actions from the beneficiaries' benefits. Discussion: In the outlined scenario, the employer's claim that the pension fund member defrauded them adds a layer of complexity to the distribution of the death benefits under the Pension Funds Act (Section 37D). Let’s break down the situation step by step. Understanding Section 37D and Fraudulent Conduct Section 37D of the Pension Funds Act permits pension funds to withhold, reduce, or set off pension benefits against amounts owed by a deceased member, including in cases involving fraud or misconduct. However, Section 37D does not provide an automatic mechanism for reducing the death benefit — it requires an admission of liability (e.g., through a document signed by the relevant party, often the member while alive or the executor posthumously) or a court judgment that establishes liability. Executor’s Role and Authority In cases where the member is deceased (especially in cases involving fraud), the executor of the estate is responsible for administering the deceased's assets and liabilities. However, the executor's powers are typically limited to the administration of the estate and not to assuming personal liability for the deceased’s actions, unless there is a clear legal basis to do so. In the above scenario, the employer seeks an admission of liability from the executor to reduce the death benefits due to the deceased's fraudulent actions. The executor would be asked to sign this admission on behalf of the deceased and then instruct the pension fund to deduct the loss arising from the fraud. Can the Executor Sign an Admission of Liability? Generally, the executor can sign documents and take actions related to the estate. However, the issue here is whether the executor can sign an admission of guilt or liability on behalf of the deceased, especially without a court order or a written admission from the deceased while they were alive. The executor typically steps into the deceased’s shoes to administer the estate, and their actions must align with the deceased’s interests. However, the executor cannot be held personally liable for actions taken by the deceased. In the case of fraud, there are complications: the executor is not typically authorised to sign documents that admit fraud or liability for the deceased unless it’s based on clear legal grounds. The executor's role is to administer the estate according to the deceased's will (or laws of intestacy) and to resolve any outstanding claims or liabilities. The executor’s role does not extend to creating new liabilities, especially not in the form of admissions of guilt or wrongdoing, which are personal and subjective acts of the deceased. What is the Executor’s Authority in This Situation? For the executor to sign the admission of liability, the following considerations must be addressed: Court Judgment or Agreement: If the employer is claiming fraud, they would need to prove the fraud through a court judgment. The executor may not simply sign an admission of fraud without a clear legal basis. Signing such a document without clear authority could expose the executor to liability or legal challenges. Fraud Determination: If the fraud is not yet established through a court judgment or written admission from the deceased, the executor would need to involve a court to approve or decide whether the deceased was indeed fraudulent and whether the pension fund can lawfully reduce the death benefits. Executor’s Fiduciary Duty: The executor must act in the best interests of the estate and its beneficiaries. Any action taken, including signing an admission of liability, must be justifiable and not in violation of their fiduciary duty. If the executor signs an admission of liability in favour of the employer’s claim, it could affect the beneficiaries' share of the death benefit, which must be carefully considered. Consultation with the Pension Fund: The pension fund itself would likely require substantial evidence of the fraud or misconduct before agreeing to deduct any amount from the death benefit. Even if the executor does sign an admission of liability, the pension fund may require independent verification or a court order before acting on that admission. Conclusion While executors have significant powers regarding the administration of a deceased person's estate, they do not automatically have the authority to admit the deceased's liability for fraud or misconduct on their behalf, especially when this involves reducing the beneficiaries' death benefits. In this case, the executor can sign an admission of liability, but only if there is a clear legal basis for doing so, such as a court order, a clear written admission of fraud from the deceased while they were alive. Without these, the executor might be overstepping their authority or making a decision that the beneficiaries could legally challenge. It would be prudent for the employer to pursue a formal court procedure to establish the fraud and reduce the death benefits in a legally sound manner. This would provide clarity and protect both the employer and the executor from potential legal risk. In the absence of a written admission by the deceased member or a court judgment obtained during their lifetime, section 37D(1)(b)(ii) does not permit any deduction from the death benefit. The correct avenue for the employer remains a creditor’s claim against the deceased's estate, to be considered by the executor during the administration process. RFS mourns the Passing of Pierre Maré We recently received the sad news of the untimely death of Pierre Maré on 7 July. Pierre served as a marketing and PR adviser to RFS and the Benchmark Retirement Fund for nearly 20 years, from our early years. He was instrumental in creating, maintaining, and promoting the brand and market posture of these two organisations. My association with the Marés stretches much further back to the time his mother, Mrs Pauline Maré, was my English teacher at the DHPS in the early 1970s. We extend our sincere condolences to his bereaved family and wish them strength and perseverance through these difficult times! May his soul rest in peace! We will miss his unconventional thinking and his dedication to and identification with RFS and the Benchmark Retirement Fund. Sadly, we must close an eventful chapter in our history and cherish the fond memories that remain.


COMPLIMENT

	Compliment from a Former Member Dated April 2025	“Dear Mrs. Gabriel, I would like to thank you and the whole RFS team very much for your support and excellent service throughout the years I have been with you. Kind regards Erwin Urban”

	Read more comments from our clients, here...


BENCHMARK: A NOTE FROM GÜNTER PFEIFER

Circulars issued by the Fund

	The Benchmark Retirement Fund did not issue any new circular or announcement after - 202502 – Risk benefits provided via the fund Clients are welcome to contact us if they require a copy of any circular.


NEWS FROM RFS

Saying goodbye is never easy!

	We regret having had to say goodbye to Elray Goreseb, a dedicated and committed employee who has served as fund accountant to some of our largest pension fund clients for the past five years. Elray left RFS to pursue a new opportunity. He has been a valuable resource to our team, consistently demonstrating professionalism, positivity, and a willingness to go the extra mile to assist our clients. We are grateful for Elray’s dedication and commitment to RFS and our customers. He will be missed greatly. We wish him all the best in his future endeavours!

RFS Welcomes New Trainees

	RFS recently adopted a policy for taking in young people for a twelve-month traineeship linked to a study bursary. Our first two trainees under the new policy are - Cecilia Fourie Nangula Kgobetsi We warmly welcome Cecilia and Nangula to the RFS team and look forward to their contribution to our team. We are confident that their warm and friendly personalities will be a valuable addition to our team. We wish them all the best and hope that they will see their future with RFS upon completion of their traineeship.

RFS Proudly Sponsors the NUST Netball Team

	We were honoured to support the incredible athletes of the NUST Netball Club as they prepared for the South African University Student Games! For over 20 years, this remarkable team has shown what dedication and teamwork can achieve, from their promotion to the Super 10 League to their inspiring international competitions. Watching these student-athletes balance academic excellence with sporting achievement reminds us why investing in young talent matters so much. As the women's team prepared for their first USSA appearance since 2013, we were proud to play a small part in their journey. Sometimes, it's the simple things—like having the right gear—that help athletes focus on what they do best. In the picture, Veueza Kangueehi, third from the left, handed over the apparel on behalf of RFS.

NBC Reappoints RFS
	We are delighted to announce that the NBC Retirement Fund Board of Trustees has resolved to appoint RFS as its fund administrator, effective 1 July 2025, following a rigorous tendering process. We do not take our reappointment for granted and are extremely proud of this accolade! Established in 1999, our company is now serving over 40,000 members and pensioners. It manages assets of more than N$30 billion, a testament to the trust placed in us by Namibian pension funds. As Namibia’s largest administrator of free-standing pension funds outside the GIPF, we take immense pride in being Namibia’s preferred choice for retirement fund management. The decision by NBC to reappoint RFS underscores our reputation for excellence and our dedication to supporting the trustees in meeting their fiduciary duties with exceptional expertise and experience. We warmly welcome back the NBC employees to the RFS community. Your fund enriches our collective strength and diversity. We are committed to providing you with exceptional service, the best pension expertise, and industry-leading solutions to help you achieve your retirement fund goals. We thank the NBC Board of Trustees and look forward to a prosperous and rewarding partnership.
Elevate your fund experience with EPIC
	Members of funds administered by RFS can now access EPIC, its member communication platform, if the trustees agree to make the platform available to members. Members can access their benefits and investment values online from anywhere at any time. Members of the Benchmark Retirement Fund take note that they have similar functionality through Benefit Counsellor. We encourage our fund members to make the best use of these facilities.
The RETIREMENT COMPASS

	RFS Fund Administrators sponsor this newsletter as part of their social responsibility and initiatives to support the retirement fund industry. It aims to provide members of funds managed by RFS Fund Administrators and other parties in their network with retirement funding and planning-related news and insights, presented understandably. Fresh from the press this month, the latest issue covers the following insightful articles: Stand-alone Funds vs Umbrella Fund Schemes; Generational Perspectives on Traditional Pensions in Namibia; Funny Retirement ‘Facts’ in Namibia. Don’t miss out on the latest Retirement Compass (vol 2, no 2) here...

Important circulars issued by RFS

	RFS issued the following new circular in July: RFS 2025.07-03 Cybersecurity circular; RFS 2025.07-04 Housing loan interest rate reduction. Clients are welcome to contact us if they require a copy of any circular.



LEGAL SNIPPETS

Can a Death Benefit Become Unclaimed?
	Section 37C of the PFA outlines the procedures the trustees must follow for distributing a death benefit to qualifying beneficiaries. Although Section 37C envisages the distribution to occur within twelve months of the date of death, it typically takes much longer because it is often difficult to identify all potential beneficiaries and obtain all necessary documentation about them. What happens if a death claim has not been finalised within five years of the member’s death? Does the Administration of Estates Act prescribe that the benefit must now be paid to the Master of the High Court as an unclaimed benefit? The duty of care requires that trustees make every reasonable effort to distribute and pay the death benefit as soon as possible. However, they cannot distribute a death benefit to an unknown or deceased beneficiary. Beneficiaries have twelve months to claim a death benefit. If the trustees have taken reasonable care to identify all potential beneficiaries, no claim may be submitted after the twelve months. The trustees cannot distribute a benefit to a potential beneficiary (whether nominated or dependent) who passed away before the deceased fund member. They must go so far as to ensure that the circumstances prevailing when the benefit was distributed are still applicable at the time the benefit is paid. If a person was awarded a benefit but passed away before the benefit was paid to them, the circumstances likely changed from the time of the benefit distribution. If they are not the same, the trustees must review the distribution. Such a review could entail that the benefit allocated to the deceased beneficiary must be paid to their estate. Consequently, a death benefit can never be unclaimed, as an allocation can only be made to identified beneficiaries who are still alive, or, under certain justified circumstances, to a beneficiary’s estate. Once the distribution is complete, the only conceivable reason the fund is unable to pay the benefit is if banking details or other outstanding formalities are outstanding, such as a tax directive. The amount due to an identified beneficiary may become unclaimed if the necessary formalities are not completed, and would have to be paid to the Master of the High Court. Adjudicator Bars Unlawful Deduction from Retiree’s Monthly Benefit Contributed by Vincent Shimutwikeni, B. Juris, LLB (honours), CGRC-BP™, Manager: Legal Support Introduction The case PC Faber v Vrystaat Munisipale Pensioenfonds addresses the implications of incorrect retirement benefit calculations by a pension fund and the legal boundaries for correcting such errors. It reinforces the strict application of pension fund rules, the fiduciary duties of trustees, and the protection of accrued benefits under Section 37A of the Pension Funds Act. It is significant for trustees managing fund compliance and for members to understand their rights regarding benefit payments. Brief Facts The complainant, Mr. PC Faber, retired early on 30 September 2012 from the Vrystaat Munisipale Pensioenfonds and began receiving a monthly pension of R26,358.98, later increasing to R33,552.10. In March 2024, the fund informed him of a calculation error: his retirement benefits had been overstated, based on incorrect pension and gratuity factors applicable to age 65 instead of his actual early retirement at age 60. The fund sought to recover the overpaid amounts by reducing future pension benefits and bonus payments. The complainant objected, alleging that the fund was misinterpreting its rules retroactively. Issue Can a pension fund recover past overpayments made due to its error by retrospectively reducing a pensioner’s future benefits? Rule Fund Rules as Binding Constitution: As established in Municipal Employees Pension Fund v Mongwaketse ([2020] ZASCA 181), the rules of a pension fund have the status of its constitution, and the doctrine of ultra vires applies. Any act not authorised by the rules is null and void. Section 37A of the Pension Funds Act: Prohibits the reduction, attachment, or recovery of pension benefits through internal offsets unless specifically allowed by law. Funds may not deduct debts owed by members from pension benefits unless through legal action outside the fund. Section 7C(1)(f) – Fiduciary Duty: Trustees must manage funds under fund rules, act in members’ interests, and ensure the financial soundness of the fund. (Kindly note that this provision does not form part of the Pension Funds Act as applicable in Namibia.) Application The fund misapplied pension and gratuity factors by treating the complainant as if he retired at age 65, instead of age 60, contrary to the applicable Rule 35. The Adjudicator found that while the benefits paid were incorrect, the fund cannot recover the overpaid amounts by reducing future benefits payable under the rules. Instead, the fund must correct the pension in the future in line with the rules and recover the overpayment externally, i.e., by legal debt collection processes. Conclusion The fund acted outside its authority by attempting to recover overpaid benefits through internal reductions. The fund is ordered to apply the correct calculation rules but may not claw back past overpayments through reduction of lawful benefits. The overpaid amount constitutes a debt, which must be recovered through legal means outside the fund. Note: Relevance to Trustees and Fund Members For Trustees: The case highlights the critical importance of rule compliance and due diligence in benefit calculations. It underscores trustees' fiduciary duties and the risks of mismanagement, including fund losses due to administrative errors. Trustees must understand they cannot unilaterally amend or correct errors by altering accrued benefits. For Fund Members: Members are protected by the legal status of fund rules and Section 37A, which safeguards their pensions from arbitrary reductions. However, members are not entitled to retain overpaid benefits and may face recovery actions through ordinary legal processes.



SNIPPETS FOR THE PENSION FUND INDUSTRY

Directors’ Liability for Pension Contributions: Lessons from SA Relevant Under FIMA Contributed by Vincent Shimutwikeni, B. Juris, LLB (honours), CGRC-BP™, Manager: Legal Support

	A recent South African High Court case (Engineering Industries Pension Fund v Installair (Pty) Ltd)[] Has underscored the personal liability of company directors for unpaid retirement fund contributions. Despite the employer’s financial distress, the court held directors personally liable where employee contributions were deducted but not remitted to the fund. The court firmly rejected arguments that economic hardship or the COVID-19 pandemic justified the non-payment. This ruling highlights that in South Africa, directors cannot shield themselves behind financial difficulties or liquidation when it comes to pension obligations. Section 13A of the Pension Funds Act establishes the duty to pay contributions and makes provision for personal liability in cases of non-compliance. Namibia’s Financial Institutions and Markets Act, 2021 (FIMA) echoes this position. Section 270 of the FIMA places a direct legal obligation on employers to pay both employer and employee contributions in full and on time. Critically, the FIMA also holds directors and other individuals involved in the employer’s financial affairs personally liable for unpaid contributions. In cases of insolvency, unpaid contributions become a first charge against the employer’s assets, prioritised even above most creditors, and failure to comply may result in criminal sanctions, including fines of up to N$2.5 million or imprisonment. In essence, Namibian employers and their directors face similarly strict obligations under the FIMA as their South African counterparts under the SA Pension Funds Act. Employers should take note: financial hardship will not excuse non-compliance. Directors must ensure that contributions are paid in full and on time, or risk personal and even criminal liability. Read the article in Cover, May 2025 edition, at this link. (1633/2023) [2025] ZAWCHC 8 (16 January 2025).

Planning for Life after Work: What to Budget for

	Retirement planning is more than just calculating income; it's about anticipating the full range of costs you’ll face. Here are key points to consider when crafting your retirement budget: Accommodation Costs: Downsizing might seem like a way to reduce expenses, but it doesn’t always work out that way. Monthly levies for sectional title units can be high, and life rights schemes can offer lower, more predictable costs. Don’t forget to factor in municipal rates, water, electricity, and security for freestanding homes, and consider rising costs in energy and security systems. Lifestyle Expenses: Your hobbies, fitness, and travel will likely increase once retired. From gym memberships to weekend getaways, these expenses can quickly add up. Be sure to budget for transportation, including the costs of maintaining a car or using public transport. Capital Outlays: Don’t forget the occasional large expenses. These could include overseas travel, purchasing technology (such as smartphones and laptops), or providing financial assistance to family members. These outlays, while occasional, can be costly if not planned for. Healthcare Costs: Medical aid premiums rise faster than general inflation. As you age, you may require more comprehensive coverage, as well as additional expenses such as hearing aids, wheelchairs, or home renovations. Consider these when calculating future costs. Elderly Care: Long-term care, like frail care or home-based nursing, is often not covered by your medical aid. Ensure your retirement plan accounts for these possible, significant expenses. Want to make sure you’re not missing anything in your retirement plan? Read the full article for in-depth guidance on preparing for all eventualities in retirement, here.


SNIPPETS OF GENERAL INTEREST

How intrinsic and extrinsic motivation shape high-performance organisational cultures

	The article discusses the importance of motivation in the workplace, highlighting how both intrinsic and extrinsic factors contribute to creating a high-performance culture. In today’s rapidly evolving work environment, organisations are focusing on motivation to drive productivity, innovation, and employee engagement. Extrinsic motivation encompasses external rewards, such as salary, bonuses, and recognition, and plays a crucial role in both short-term performance and discipline. It’s particularly effective during the early stages of projects or in routine, high-pressure environments. However, an over-reliance on these external motivators can diminish their effectiveness over time and may foster unhealthy competition, entitlement, and a transactional mindset. Intrinsic motivation, on the other hand, originates from within and is driven by factors such as purpose, enjoyment, personal growth, and curiosity. It sustains long-term performance, especially during challenging or quiet periods, and fosters innovation, perseverance, and employee engagement. Leaders need to create environments that support intrinsic motivation by promoting autonomy, a sense of purpose, and opportunities for learning and contribution. The article emphasises that both forms of motivation can coexist and complement each other, but organisations that balance both intrinsic and extrinsic motivation tend to outperform others. It suggests that leaders should design roles that connect employees’ work to a larger mission and recognise employees as whole individuals with diverse aspirations. In the context of Namibia and other African countries, where cultural values and communal identity are highly significant, intrinsic motivation assumes added importance. Leaders who involve employees in decision-making and respect cultural values can build loyalty, resilience, and accountability. Ultimately, the article stresses that a vibrant, high-performance organisational culture blends both intrinsic and extrinsic motivations in a balanced way, encouraging deeper engagement, personal fulfilment, and collective success. In today’s volatile world, organisations must move beyond mere rewards to cultivate intrinsic motivation that drives meaningful work and fosters excellence. Read the full article by Junias Erasmus in The Brief of June 27, 2025, at this link.

The Underinsurance Crisis

	Many people are dangerously underinsured, and it’s costing them. From home damage to agricultural losses, many only discover the gaps in their coverage when it's too late. The consequences can be financially devastating, with partial payouts or complete inability to replace vital assets. Key issues? A widespread lack of understanding about insurance, outdated asset values, and mistrust in the industry. Jonathan Lindeque of GIB highlights that miscalculations, missed updates, and under-insuring can lead to major losses. With inflation and technology rapidly increasing asset values, your insurance cover can become outdated quickly if you’re not proactive. A trusted broker is more essential than ever, helping to navigate complex policies, update valuations, and ensure your coverage matches the true value of your assets. Read the full article to find out how to safeguard your assets and avoid costly mistakes, here.


AND FINALLY...

Wise words from wise men

	"Science is organised knowledge. Wisdom is organised life." ~ Immanuel Kant (1724 - 1804)


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