A universal, Old Age Pension System was initiated in Botswana in 1996. Coverage extends to all citizens over 65 years of age residing in Botswana. The current pension (2015) is 220 Pula per month (US$ 22), the costs of which are born by the government. This pension is adjusted periodically according to changes in the cost of living.
The public sector employee scheme, the Botswana Public Officers Pensions Fund (BPOPF), was converted from a DB to a DC arrangement in 2001. The fund constitutes about 75% of all pension fund members in the country.
Occupational pension coverage is increasing, although only a small portion of private sector employees are covered at this stage.
The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) regulates and supervises the retirement fund industry.
There is a mandatory pension scheme for formal sector employees – Institut National de Securité (INSS), which has been running for 50 years. This scheme covers salaried workers covered by the labour code, military and police personnel, contract-workers from the civil service, interns and apprentices. It also allows for voluntary coverage of persons previously insured for at least six consecutive months.
There is a separate scheme for the civil servants, Office National des Pensions et Risques Professionels des Fonctionaires (ONPR), as well as a small number of private arrangements.
In 2008 Ghana undertook a large-scale pension reform and in 2010 a three-pillar pension system was implemented. The reform included the establishment of the National Pensions Regulatory Authority (NPRA) as regulatory body. The three-pillar system operates as follows:
Contributions are 13.5% of salaries to the First Pillar pension and 5% to the Second Pillar.
The Armed Forces and some parts of the Civil Service have their own pension schemes established under separate statutes.
The retirement benefits sector in Kenya is regulated by the Retirement Benefits Authority. Formal sector employees must belong to the National Social Security Fund (NSSF), a DC arrangement with specified contributions by the employer and employees. A new NSSF Act was promulgated in 2014 with tiered contributions, also allowing for a provident fund, but the full implementation of the new act has been delayed due to legal challenges.
There are also a defined benefit civil service pension scheme, as well as occupational schemes and individual pension schemes. Coverage is about 15% of the workforce (10% in the NSSF, 3% in the civil service scheme, 1.5% occupational schemes and 0.5% covered by individual retirement benefit schemes).
A new mandatory national pension system (NPS) was established in 2011 that creates individual retirement accounts for private-sector workers earning above a minimum salary threshold. The law has yet to be implemented.
The only public pension in Malawi existing prior to the enactment of the Pension Act, 2011 is the Civil Service Pension Scheme (CSPS) operated by the Government of Malawi, which is a PAYG DB scheme.
The National Social Security Institute (INSS) provides a pension based on a DB formula to those of a pensionable age who have been members for 20 years or more (or 120 months since the inception of contributions). It also provides this benefit irrespective of age to those who have been members for more than 30 years (or 300 months since the inception of contributions). Contributions of 3% of salary by employees and 4% by employers were made mandatory in 2007.
The pension fund industry in Mozambique is still largely underdeveloped. The few private sector pension funds that exist (known as Complimentary Pension Funds) must be compliant with compliant with decree 25/2009, which serves as regulations to these funds.
The Namibian pension system consists of a universal pension scheme, the National Pension Scheme (NPS), and voluntary contributory private pensions. The NPS provides a basic state pension (a flat-rate benefit) and is non-contributory. The Namibia Financial Institutions Supervisory Authority (NAMFISA) regulates and supervises the pensions industry.
The Government Institutions Pension Fund (GPIF) covers civil servants. This is a fully funded DB scheme and is the largest pension fund in the country, with assets about 70% of total pension assets in the country. The government also launched the Namibia Agricultural Retirement fund to cover agriculture related workers.
The country also has a few hundred private schemes which are taxable and contributory.
The Pension Reform Act 2004 (PRA) made it mandatory for employers with more than 5 employees to contribute to an occupational retirement fund. The funds are administered by Pension Fund Administrators (PFAs), with assets held independently by Custodians. The PRA applies to public- and private-sector employees and only excludes the Armed Forces and some federal and judicial positions.
Private sector pension schemes in existence at the time of establishment of the CPS were allowed to continue their operations on certain conditions relating to financial soundness.
The National Pension Commission (PenCom) regulates and supervises the pensions industry.
Rwanda uses the general three-pillar pension system, which operates as follows:
Tanzania has six national retirement funds – the NSSF, the Public Service Pension Fund (PSPF), the Parastatal Pension Fund (PPF), the Local Authorities Provident Fund (LAPF), the Government Employees Provident Fund (GEPF) and the Zanzibar Social Security Fund (ZSSF). These six DB funds cover all private and public employees, as well as the self-employed. Voluntary coverage is available, but take-up on these funds has been slow.
The Social Security (Regulatory Authority) Act (2008) is the main legislation governing retirement funds in the country. The Social Security Regulatory Authority (SSRA) regulates and supervises the pensions industry.
Uganda operates a provident fund system, with the National Social Security Fund (NSSF) covering private sector employees aged 16-54 in firms with 5 or more workers. Voluntary coverage is also available, as well as a separately run scheme for government employees (the Public Sector Pension Fund – PSPF).
The Retirement Benefits Authority (RBA), a new independent regulatory authority, has begun licensing private pension plans, the first phase of a new pension system. Once the new system is fully operational, workers will be able to choose between the existing National Social Security Fund and other approved plans.
Reforms over the past two decades have transformed Zambia’s provident fund system into a pension system consisting of mandatory, privately managed, partially-funded, DB schemes. Voluntary occupational pension‘s schemes also exist. A pension regulator, the Pensions and Insurance Authority, was established in 2000.
Zambia‘s National Provident Fund (ZNPF) was restructured in 1996 and was converted to a basic, compulsory, social insurance scheme, administered by the National Pension Scheme Authority (NAPSA). The Pensions and Insurance Authority (PIA) regulates and supervises the pensions industry.
The National Pension Scheme (NPS) provides benefits on a scaled premium-methodwhere equal monthly contributions are made by both employers and employees. It covers all citizens above the age of 16 years and under the age of 65 years who is in permanent-, seasonal-, contract- or temporary employment. Membership is compulsory for all those who meet the required criteria.
The rest of the industry is made up of voluntary savings through private pension institutions such as insurers, and a few self-administered funds such as:
The Insurance and Pensions Commission regulates and supervises the pensions industry.
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