Old Mutual moves to enhance pensions understanding

Limited subsidiaries, Old Mutual Pensions Services Company and Old Mutual Malawi Life Assurance Company, will in the next four months conduct a campaign to popularise the Pensions Act of 2011 that, among other things, guides group life assurance and pension administration.

Through the campaign, the firms will, among others, share with the public requirements and procedures for claims, highlight the importance of filling nomination forms and regularly updating their beneficiary lists.

In an interview this week, Old Mutual Malawi Life Assurance Company managing director Roy Punungwe said the firm has noted information gap among members on pension administration hence the campaign which will also highlight the importance of beneficiary nomination and pension claims procedures.

“We have over time seen an increase in cases of members without current beneficiary nomination forms and notable gaps in the claims making procedures by both employers and members.

“We are expecting to see informed customers who are aware of the importance of having current beneficiary nomination forms and pension claim procedures, including transfer of pension funds from one administrator to another when one changes jobs,” he said.

The campaign, according to Punungwe, will in effect, contribute to improved customer experience to pension customers as they will be aware of all the requirements, which should lead to swifter pay-outs.

Commenting on the development, Employers Consultative Association of Malawi (Ecam) executive director George Khaki observed that there are many employers and workers that do not fully understand the provisions of the Pensions Act.

“Such a session will help employers know and understand their obligations under the Pensions Act and, therefore, enhance compliance. On the other hand, with this knowledge, employees will be able to enforce their rights under the Act,” he said.

Since the new Pensions Act enactment in 2011, Malawi’s pension industry has been among the region’s fastest growing following a sharp rise in pension savings and assets at an average of 34 percent annually. However, majority are unaware of the provisions.