Bank Denies Owing Pension Payouts

13 July 2011

Windhoek — Standard Bank Namibia Retirement Fund has issued a public response regarding the case of disgruntled members of the retirement fund who are convinced the fund owes them millions of dollars because of incorrect calculations by the fund.

The Standard Bank Namibia Retirement Fund says the allegations are false as only six members had their benefits understated, and the amount owed to them is insignificant given the size of the fund.

Last week the disgruntled members sued the principal officer of the fund, along with the fund trustees and Standard Bank Namibia, filing documents with the High Court.

The 122 members believe they are owed slightly over N$ 8 million. Standard Bank Namibia and the retirement fund trustees refute the claim saying it “is baseless and the High Court action is accordingly defended”.

Standard Bank says it would not comment in detail at this stage since the dispute is before the courts.

The dispute has been dragging on since last year.

The bank does however say that “appropriate measures are being implemented to address these mistakes [concerning the six affected members] and, in the case of affected members who left the fund in the meantime, additional payments are or will be made.”

Standard Bank Namibia Retirement Fund says when the allegations where first made it instructed independent actuaries to review the basis upon which the calculations were made.

“The independent actuaries confirmed that the basis of the conversion was correct.

In the course of this exercise the member information employed for the calculation of the benefits was also verified. It transpired that some data errors had occurred and that as a result the benefits of six members were understated [and] in respect of a few others, they were overstated. Given the size of the fund, the amounts involved are insignificant. Namfisa [Namibia Financial Institutions Supervisory Authority] is informed about developments throughout,” the fund said in its statement.

The errors seem to have crept in when the fund converted from a defined benefit to a defined contribution fund some years ago. It was during this period of conversion that some members had their benefits wrongly determined.

The trustees for Standard Bank Namibia Retirement Fund say members should be assured that “the fund is governed in accordance with best industry practice, fully compliant with all regulatory requirements and that its assets are properly invested”.

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