Tue. Nov 19th, 2019

NICO Engages Trustee’s on Pension Funds

By Lumbani Nyasulu
Chief Executive Officer for NICO Pension and NICO life Insurance Erick Chapola says the company is engaging with it’s trustees on pension issues since pension is a very important aspect to every employees in Malawi.
Chapola made this remarks on Wednesday in Lilongwe during the NICO annual trustee seminar conference with the main idea of discussing developments concerning pension funds sector.
He further said that NICO has also partnered with Reserve Bank Of Malawi as regulator which looks at pension law and developments as well as duties of the trustees and their duties as employers.
” We also bring our partner NICO asset Managers these are front managers that invest pension funds and tell trustees how they invest this funds and the returns they get from the funds ,” Chapola said.
On challenges facing the pension sector in malawi Chapola lamented that companies not paying contributions they deduct contributions from employees but they don’t pay over to us.
“Another issue is they could deduct but they pay those contributions late hence the law demands that the contributions must be paid within 14 days ,” said Chapola.
Chapola therefore encouraged trustees and companies to pay funds in time so that pension funds should earn more interest and funds grow thereby helping people to get what they supposed to get after retirement.
Commenting on the issue as the regulator Reserve Bank of Malawi Representative Pachalo Luhanga said the Central Bank focus is to create awareness in terms of pension sector by informing and updating pension funds .

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