National Bank of Malawi (NBM) Unrestricted Fund Pension Fund Limited has merged with Indetrust Limited Pension and Death Benefits Fund and will now be known as NBM PAL Unrestricted Pension Fund.
Making the announcement in a statement, NBM Pensions Administration Limited chief executive officer, William Mabulekesi said the merger is in compliance with the Pension Licensing and Registration of Pension entities guidelines issued by the Reserve Bank of Malawi (RBM).
NBM PAL Unrestricted Pension Fund is a licensed and registered unrestricted pension fund with the regulator of pensions in Malawi, RBM under the Corporate Trusteeship of NBM Pensions Administration Limited (NBM PAL), effective 1st January 2020 for reporting purposes to the authorities.
The announcement has come out now because of some rigorous steps and processes which required regulatory approvals, according to Mabulekesi.
“Following the acquisition of Indebank Group by National Bank of Malawi Plc on 1st July 2016, Indetrust Limited, which was a subsidiary of the Indebank Group ceased to operate and handed over its pension administration services to NBM PAL which was already registered and licensed by that time. NBM PAL is a 100% wholly owned subsidiary company of National Bank of Malawi Plc established to offer pension administration services,” said Mabulekesi.
“We would like to assure our clients that the merger and rebranding of the two pension funds was sanctioned and approved by the regulatory authorities following consultations with key stakeholders – the Board of Trustees and relevant professional service providers; Actuaries, Legal Advisors and Auditors of the two defunct Pension Funds,” added Mabulekesi.
He also assured customers of the safety of their benefits which are supported by the governance structures of the rebranded pension fund, NBM Unrestricted Pension Fund.
In an interview, Mabulekesi said the rebranded NBM PAL Unrestricted Pension Fund has now pooled together a significant size of assets and will benefit the members participating therein in the sense that it can absorb market shocks through its well diversified portfolio of different instruments in investment space.
“All third party service providers like Auditors, Actuaries have been retained in order to safeguard the much needed institutional memory of the two merged Pension Funds for the benefit of the members,” said Mabulekesi.
He said NBM Pensions Administration Limited, as an Administrator of the defunct pension funds, will therefore continue providing services to the rebranded Fund.
“Members from the rebranded Fund will continue to enjoy the high quality administration services inter-alia real time access to information, prompt payment of claims, attractive bonuses as a result of a well balanced fund leveraging from the economies of scale and periodic client interfacing,” explained Mabulekesi.Follow and Subscribe Nyasa TV :