HRSM Emphasizes Need for Knowledge on Pension Amendment Act
HRSM: Successful implementation of pension act depends on HR personnel's knowledge
BLANTYRE, Malawi — The successful implementation of the 2023 pension amendment act in Malawi depends on equipping human resources personnel from various companies with adequate knowledge about the act, according to the Human Resource Society of Malawi (HRSM), writes Steven Godfrey Mkweteza.
During a day-long continuous professional workshop on the pension act and labour relations and employment act held in Blantyre on Friday, HRSM Secretary-General Robin Kajasiche highlighted an information gap among human resource personnel regarding the current 2023 pension scheme and labour relations acts.
He emphasised the importance of providing correct knowledge to ensure a smooth implementation of the acts.
"We need harmonious and cordial industrial relations, especially between employers and employees, to ensure the successful implementation of the acts," said Kajasiche.
Employees have been advocating for changes in the pension act over the years, aiming to access a more significant share and an increase in the lump sum from 40 percent to 70 percent, as well as the ability to access it before retirement.
The workshop, attended by 39 human resources personnel and pension administrators, covered various topics, including the waiting period for accessing pension contributions.
Instead of the previous six-month waiting period, employees will now be able to access 100 percent of their monthly contributions within three months.
Mphatso Mfipa, the human resources and planning officer in the Ministry of Mining, described the workshop as an eye-opener for the implementation of the 2023 pension amendment and employment acts. She expressed confidence that the workshop had narrowed the capacity gap and would contribute to successfully implementing the actions.
Earlier this year, the Reserve Bank of Malawi (RBM) reported pension contribution arrears of K27 billion from 999 employees out of 3,073 on the National Pension Scheme.
The Pension Act was promulgated in 2011 and amended in 2014 to provide more time for government compliance and registration of pension funds.
However, there have been challenges in understanding the act among employees, leading to confusion and gaps in implementation.