NBM pensioners’ benefits transferred to Nico Life
By McDonald Chapalapata:
The Trustees of National Bank of Malawi (NBM) Pension Fund have migrated NBM plc former employees’ benefits from the fund to Nico Life Assurance Company effective January 1 2021.
Announcing the change in Blantyre, NBM Pension Administration Limited Chief Executive Officer William Mabulekesi said the decision had been arrived at because of differences in risk profiles for active employees and pensioners.
He said the concerned members are those who retired from NBM plc on or before May 31 2014.
Mabulekesi explained that when the Pension Act became effective on June 1 2011, there was a provision of a three-year transitional period which expired on May 31 2014 where employees who retired in this period accessed 40 percent of the total accumulated pension while 60 percent remained in NBM Pension Fund to cover for their monthly pension receipts for life.
He assured the members to feel at home at Nico Life since they are to join a bigger pool of about 2,000 pensioners.
“In addition, they are joining an annuity portfolio which ably suits their objective of guaranteed monthly pension receipts for life.
“In the Annuity Fund, this agenda is well defined in contrast to be in a pool combined with active employees of NBM plc who are pursuing a different ambition altogether,” Mabulekesi said.
Mabulekesi also said all pensioners who currently receive their monthly pension pay-outs through NBM Pensions Administration Limited will now be receiving the same from Nico Life.
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