The Mwafuli Unrestricted Pension Fund, as the name suggests, is a Defined Contribution (DC) Unrestricted pension fund that offers an economically efficient pension vehicle for administering pension contributions of all types of workers.
The Scheme is registered by the Reserve Bank of Malawi and provides pension benefits for members. The Fund offers a default lifecycle option designed to accommodate different investment preferences of participants as they approach retirement.
Members who elect to choose their own investment plans can modify their investment plan every five years as their circumstances change. This is done automatically for participants on the default lifecycle option.
The Fund is open to employers with a minimum of 5 workers. Because the Mwafuli Unrestricted Pension Fund is an occupational scheme, only participating employers can register their employees on the scheme.
The employer and employee are expected to contribute not less than 15% of the employee’s pensionable emoluments into the scheme. Contributions payments and associated remittance data are expected to be submitted before the 14th of every month.
Leaving employment & Benefit Payments:
Pension accounts are very portable for members who wish to transfer to and from the scheme whenever they change jobs. At the election of a participant, benefits can also be preserved in the scheme, though one may change jobs.
Benefits are paid by part lumpsum and regular monthly income as required by the Pensions Law. For deceased participants, nominated beneficiaries may apply for benefits to be paid to them. Withdrawal requests are processed and paid within the shortest possible time, after receipt of request.
Members may be entitled to a group life cover underwritten by Vanguard Life Assurance Company Limited to a tune of:
1. An amount equal to one times annual salary and a funeral cover of MWK50,000 upon the demise of the member
2. A funeral cover of MWK30,000 and MWK20,000 upon demise of wife and up to 4 children respectively.
Axis Pensions actively engage employees on pension educational programs for new joiners and exiting members, including persons approaching the age of retirement.
Other Advantages for joining the Mwafuli Unrestricted Pension Fund
1. Competitive fee structures
2. Competitive investment returns.
3. Low expense ratio
4. Life Cycle Options Exist
5. Professional management