GIPF assets now equivalent to more than 89% of Namibia’s GDP – Business Express

…as N$6.9 billion is paid out to members as benefits

The Government Institutions Pension Fund (GIPF) has experienced remarkable growth, witnessing assets climb from N$117.5 billion in 2019 to N$151.8 billion by 31 March 2023, the Fund’s integrated annual report for the 2023 financial year reveals.

This represents over 89% of Namibia’s GDP, expresses GIPF in the report.

“Through strategic investments, GIPF has played a pivotal role in driving social change and sustainable economic development for the collective well-being of the nation,” the GIPF says in the report.

With N$110.7 billion managed by investment managers, N$1.9 billion in direct investments, and N$38.5 billion in the Treasury Portfolio, GIPF’s solvency ratio increased substantially from 100.7% in 2019 to 115.5% as of March 31, 2023, reflecting shared value creation and an improved quality of life for members.

“GIPF has made remarkable strides in delivering excellent service, as evidenced by exceeding targets and achieving a 100% client satisfaction index. The Fund’s commitment to efficient member care is evident in reduced benefits payment turnaround times, with funeral claims processed near real-time, retirement claims in nine days, and death benefits in within seven months. Our active membership decreased from 98,623 to 97,512 by end March 2023,” GIPF said adding that member contributions increased by 3.7% from N$4.5 billion to N$4.7 billion, while benefits paid out to members increased substantially, from N$4.4 billion to N$6.9 billion, indicative of a maturing Fund.

“Ensuring data integrity is a strategic priority for GIPF. Efforts to improve data quality have resulted in substantial progress, with a reduction in unclaimed benefits and improved reconciliation between systems. Despite challenges, the Fund has successfully enrolled 2,737 members previously not admitted, reflecting a commitment to accurate and complete data.”

GIPF also notes that results from the valuation indicate a funding level increase to 115.51% as of September 30, 2022, surpassing the 113.9% reported on March 31, 2021.

“Aligned with our internal policy guideline targeting a funding level of 105% – 115% over time, the increase is attributed to a three-year average investment return of 7.7%, totalling N$6.5 billion,” the GIPF said.