Malawi Congress Party (MCP) spokesperson on finance Joseph Njobvuyalema on Wednesday quashed the amendments in the Pension Bill, saying they did not make sense when there had been bigger complaints from workers on the Pensions Act.
Minister of Finance, Economic Planning and Development Goodall Gondwe tabled the bill, seeking an amendment to Section 2 of the Pensions Act because government was not able to join the fund due to funding problems.
But Njobvuyalema trashed the amendment of investing the fund outside Malawi and the replacement of Pension Fund Adminstration in Section 7, saying the Act should have just empowered the Adminstrator General to carry out pension activities.
But People’s Party (PP) spokesperson on legal matters Ralph Mhone said his party was in support of the bill as it aimed to iron out technicalities, which had cropped up since the law came into effect.
Gondwe asked Parliament to amend the Act to allow investment of pension assets outside the country.
He said ihe amendment will also soften conditions for pension contributors to access contributions if they remain unemployed for six months.
Said Gondwe: “It would not make economic sense to deny a person when the amount was small”
After deliberations, Parliament passed the Pensions (amendment) Bill to allow the public service to be exempted from joining the National Pension Fund for an additional two years following the expiry of the exemption in June 2013.