Finnet Trust’s Post

We are excited to co-host the 5th Africa Pension Supervisors Association (APSA) Annual Conference 2024 alongside the Pensions and Insurance Authority (PIA) of Zambia 🇿🇲 today and tomorrow. This conference provides an opportunity to delve into the historical development, current landscape and future prospects of #Africa's pension systems. Our goal is to address the challenges in the pension system and explore strategies to ensure dignified and secure retirements for all African citizens. We aim to foster meaningful exchanges among public and private sector stakeholders, including policymakers, regulators, pension experts, think tanks, thought leaders, and senior economists. Key discussions will focus on emerging trends and opportunities, such as technological solutions for pension administration, investment innovation and diversification. We look forward to impactful conversations and innovative solutions that will shape the future of pensions in Africa. #APSA2024 #MakingFinanceWork #AfricaPensions #RetirementSecurity -- Mark Napier, Dr Evans Osano, DBA, Amos Mugi, FRM, Grace Pascal Mdemu, Adebayo Araoye, Mary M. Njuguna, Cecilia Bjerborn Murai, Cynthia Burudi, Angellah Khamala

THE GOLDEN HANDSHAKE OF 1997 (27 years later). The voluntary downsizing of the Kenya Civil Service 80% of the social media Gen Z may not understand this. But hey young people here is something that worked. Why do we keep fillybastering with an aging aged public workforce and gatekeeping matters of youth employment when there is a T&T model of handling the menace. By June 1993, the strength of the Kenya Civil Service was too bloated and stood at 273,000 in post as compared to 63,000 in 1963 at independence. This shows an average growth rate of 7,000 every year for a period of thirty years. Most of the government's recurrent expenditure was going to personnel emoluments, leaving very little money for use on operations, development and maintenance. To be efficient, productive, and even competitive in providing services and products to the public in an era of Structural Adjustment Programmes (SAPs) with liberalized economies, the government had to take measures to reduce its budget deficit by having a LEAN civil service bureaucracy. To induce civil servants to retire early, the government designed and rolled out a Voluntary Early Retirement Scheme (VERS) administered by the Civil Service Reform Secretariat, whereby those who VOLUNTEERED TO RETIRE EARLY were given substantial amounts of SAFETY CASH BENEFITS in the form of a GOLDEN HANDSHAKE to assist them in settling down properly after retirement from the service. It was also envisaged that the Golden Handshake would assist the RETIREES in VENTURING INTO SMALL BUSINESS ENTERPRISES and HELP THE GOVERNMENT BOOST THE ECONOMY. So fwd to 2024: a retiree with experience and a credit profile will easily start a business with a balanced level of risk balance and excitement, why are we pushing this down the throats of youth to gamble with GDP, GNP and balance of trade. Create room for young people to serve in public service. If i remember well the golden handshake age bracket was 48-55. It was a live discussion among my parents and my mom who served the Ministry of Public Works and Roads, Embu faithfully chose to stay on.

The pension sector in Kenya has seen several improvements, particularly in terms of penetration. But how does it compare to other African countries? South Africa, for instance, boasts one of the most advanced pension sectors in the continent. In this article, the pension industry in Kenya will be compared against that of South Africa,looking at key aspects such as pension penetration, assets under management and types of schemes among others. Age distribution plays an important role in shaping pension systems therefore, we will also look at the... #SouthAfrica #Kenya #Pension #RetirementSecurity

My stint in strategy and management consulting in Rwanda led me to believe that Rwanda and Malaysia are more similar than we think. The form of social security for the entire formal workforce in Rwanda is defined benefit i.e. pension system. This poses an active sustainability risk to the social security fund, that is to say, it is possible that one day, the social security organisation may not have cash to pay out pensions. This great day of doom is not too remote. And this is why I have previously recommended that Rwanda pivots towards a defined contribution scheme. Now Malaysia has plenty to learn from the risk experienced by other economies. While we do have other cushions to slow our decline, this in no way permits us any complacency in securing a healthy fiscal surplus for other development projects. This article accurately captures my thoughts I like where we are heading: 1. Reform of the civil service pension system i.e. wholesale abolishment will improve overall government fiscal health 2. This reform will pave way for growing performance-focussed talent pool, compared to those aiming to secure llifelong pension.  3. This reform must be applied to both political appointees and civil servants I will proceed to add the following point: 4. Revision of remuneration scheme for the new generation of civil servants must be competitive to private sector to ensure successful transition to a full defined contribution scheme, i.e. EPF based. 5. Improving fluidity of civil service to enable talent entry at managerial level. This includes abolishing the tacit civil service principle of "once out, forever out", and debunking the "career for life". Without great talent, our nation withers. We ought to know better from the example across the Tebrau Strait.

Sri Lanka plans to establish a national wealth fund using government assets, as announced by President Ranil Wickremesinghe. This initiative aims to emulate investment companies in countries like Norway, Qatar, and Singapore, where profits from government revenues are used for public welfare. Traditionally, funds from the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) were used to purchase bonds. However, the current program focuses on reducing government spending and increasing state revenues. Wickremesinghe shared these plans during the launch of a retirement insurance system by Sanasa in Colombo. https://lnkd.in/gVDmwPY2

🛠️ Navigating Harsh Realities: The Challenges Facing Retirees Retirees often face numerous challenges. These insights are crucial not only for those nearing retirement but also for individuals just starting employment or self-employment. Firstly, attending employer or self-sponsored retirement training early, with regular refreshers, is essential for effective planning. This foresight bridges the gap between pension income and actual living expenses, reducing financial strain. Vigilance is also vital. Retirees are prime targets for financial exploitation. Protecting resources through trusted advice and caution is crucial. Since pension benefits are typically insufficient for a comfortable retirement, saving and investing during active years is critical. Building liquid assets ensures retirees have cash for unforeseen expenses. Ethical financial planning can help balance pensions, savings, and investments to cover healthcare and avoid unnecessary debt. Healthcare in Kenya is expensive, and the discontinuation of the Kenya Association of Retired Officers (KARO) enhanced medical scheme cover, once supported by NHIF, has left many retirees struggling with rising costs. No enhanced benefits, like those developed for students under SHIF, exist for the elderly. This is alarming since retirees face frequent chronic conditions. Given retirees’ high-risk status, government-supported medical coverage is more feasible than private insurance. Article 57 of the Kenya Constitution mandates the state to ensure the welfare of older citizens, including access to healthcare. Without this support, many children step in financially, though the state must bear the larger responsibility. Planning as if no financial assistance from children will materialize ensures financial independence. Strategic planning with professional advice helps retirees cope with healthcare costs while avoiding financial desperation. Incorporating stress management and regular exercise into daily life is essential for mental and physical well-being. If possible, taking holidays can refresh and enhance overall quality of life. In conclusion, retirement requires foresight, financial prudence, and a robust support system. Adequate preparation and informed decisions can ensure a smoother transition into this phase of life. #RetirementPlanning #FinancialSecurity #HealthcareKenya #EthicalWealth #FamilySupport

Last year, I attended a conference in Mombasa, where discussions revolved around the billions held in pension funds. We were in the midst of one of the most severe drought and floods thereafter in our nation has ever faced, yet not once did we address the crisis at hand. Pension funds are far more than just a vehicle for securing a comfortable retirement. They are a powerful tool—a tool that can and should be used to uplift our communities, fight poverty, and foster diversity. Food prices, driven by agricultural challenges like drought, are the single biggest driver of inflation in our country. When we invest in sustainable agriculture, in projects that build resilience against drought, we are not just securing returns—we are securing the very foundation of our economy. We are fighting inflation, protecting the value of our pensions, and ensuring that every Kenyan has access to affordable food. This isn’t just about financial growth; it’s about real, tangible impact. Pension funds should be the great equalizer, not just a safety net for the fortunate few, We have Evance RABONG'O an Agri economist and Esther Muriithi a pension executive and Women Farmers representative as we drive towards Kenya Pension Awards https://lnkd.in/dG3GxEnv

Latest news for Kenya's retirement benefits policy! The Treasury has unveiled reforms aimed at boosting access for informal, diaspora, and short-term workers, with investments totaling up to Sh255 million by December next year. Key highlights include strategies to onboard informal sector employees, awareness programs for the diaspora, integrating financial literacy into education, and amending laws to enhance pension product uptake. These interventions aim to significantly increase pension coverage within the next five years, addressing the current concentration on formal employees. Stay tuned for a brighter retirement future for all Kenyans! #RetirementBenefits #Kenya #PolicyReforms

Understanding the Benefits of EOBI (Employees' Old-Age Benefits Institution) The Employees' Old-Age Benefits Institution (EOBI) is a government department in Pakistan that plays a critical role in safeguarding the financial future of employees. Established under Article 38(c) of the Constitution of Pakistan, EOBI is designed to ensure social security by providing pension benefits to workers, making it an essential part of our labor landscape. Here are the key benefits of EOBI: 1. Old-Age Pension: Employees who reach the retirement age of 60 (for men) or 55 (for women) and have contributed for at least 15 years are entitled to a lifelong pension. 2. Survivor's Pension: In the event of an employee’s death, their dependents (spouse, children, or parents) are entitled to a pension, ensuring continued financial support. 3. Invalidity Pension: If a worker becomes permanently disabled and can no longer work, EOBI provides a pension to support them. 4. Old-Age Grant: Employees who retire without 15 years of contributions receive a lump sum payment. All private sector companies are legally required to register their businesses and employees with EOBI. Non-compliance can result in legal penalties. By contributing to EOBI, employers not only meet their legal obligations but also provide long-term financial security for their employees, in line with Pakistan's commitment to social welfare as outlined in the Constitution. Let’s take action to ensure a secure future for the workforce and fulfill our responsibilities as employers. #EOBI #EmployeeBenefits #RetirementPlanning #SocialSecurity #PakistanEmploymentLaw #EmployeeWelfare #EmployerObligations #Article38C

Restating JoyNews’ post, one could say that #SSNIT is unable to pay pension benefits to Ghanaians below the age of 48. Another way to put the analyses by the International Labor Organization (ILO). Such news prompts discussions on reform measures to ensure the long-term viability of these programs. The fix, however, is not so straightforward. The President wields undue influence, resulting in waste and inefficiency, even in subjects concerning the appointment of experts in retirement and aging matters! Why? The President appoints individuals based on political affiliations rather than expertise or merit. The vast majority of public officers in Ghana are in positions not because they have domain specialist knowledge, but because they contributed money to political campaigns. So, the separation of the #SSNIT #Trust from executive influence is a critical step to stop the wastage and mismanagement. The Trust's operations and financial statements should be subject to regular reviews by parliamentary committees, including appointments. Did you know that for the past ten years, neither #parliament, #trade #unions, nor the #general #public have received the actuarial valuation reports conducted by external actuaries? It is also time to reform the Trust! #About #SSNIT: The Social Security and National Insurance Trust (SSNIT) operates as Ghana's official statutory public pension scheme, responsible for administering, investing, and disbursing contributions to provide financial security for workers in retirement.