Nico Holdings Plc says it has not been spared the non-remittance of pension funds as companies owe the group K4 billion in pension funds arrears.
Nico Holdings Plc managing director Vizenge Kumwenda said this on Thursday in Lilongwe during a cocktail party the group hosted for its existing and prospective customers.
He said: “A lot of employers are not remitting pension contributions for their members of staff. That is not good because the money belongs to the employees and that money has to be invested for the future benefit of the employees.”
Recently, the Reserve Bank of Malawi (RBM), which is the registrar of financial institutions, said the arrears in the insurance sector have hit K7 billion.
In a previous interview, RBM principal examiner for policy and regulation Peter Kambalame said it is a must for employers to remit pension contributions as employees lose out in their investment when they default.
The Pensions Act of 2010 mandates all employers with more than five people on their payroll in Malawi to set up a pension scheme in line with the International Labour Organisation (ILO) Social Security Minimum Standards.
The Malawi Stock Exchange (MSE)-listed Nico Holdings Plc has the following subsidiaries Nico Life Insurance Company with its subsidiary Nico Pensions Limited, Nico General Insurance Company Limited, Nico Asset Managers, Nico Technologies Limited and NBS Bank Limited.
Internationally, the group has operations in Zambia, Tanzania and Uganda. n