Civil servants fault pension scheme


By Jameson Chauluka:

Civil servants affected by the new Contributory Pension Scheme are demanding transparency and accountability in administration of their funds.

This year, the government put civil servants that are below 35 years of age on a contributory pension scheme.


The civil servants have raised their concerns through a letter which their Chairperson Stanley Kadam’manja and Secretary Misheck Chanunkha have addressed to Human Resource Management and Development Secretary and Civil Servants Trade Union’s Blessings Chilabade.

In the letter, dated July 16 2018, the civil servants have complained that they were provided with scanty information on the new scheme.

“As a matter of fact, there were no thorough consultations with civil servants at all levels, a thing that has left many with unanswered questions. For instance, we need to know why the scheme is only targeting those who are 35 years and below. In its nature, this pension scheme is evil, discriminatory and aimed at victimising the youthful civil servants,” reads the letter in part.


The letter says the concerned civil servants want access to information on the pension accounts which the government said are held at Old Mutual which is the administrator of the scheme.

“We, therefore, demand that as concerned employees, [the] government should give us access to accounts in order for every concerned civil servant to follow up every transaction taking place,” it reads.

In a separate interview, Chanunkha said the concerned civil servants have taken it upon themselves to rectify the anomalies with the scheme saying the Civil Servants Trade Union is not showing enough interest in pushing the matter.

But Minister of Finance Goodall Gondwe and Reserve Bank of Malawi Governor, Dalitso Kabambe, in a letter of intent to roll out the contributory pension scheme to the International Monetary Fund this year, said the government’s review with the help of IMF technical assistance determined that the scheme would not be sustainable.

The two promised to revisit the proposed pension reforms by concentrating on parameter adjustment to reduce the liabilities of the current system.

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