• Important notes & reminders
• In this newsletter...
• Tilman Friedrich's industry forum
• Compliment
• Benchmark: a note from Günter Pfeifer

• News from RFS
• News from NAMFISA
• Legal snippets
• Snippets for the pension fund industry
• Snippets of general interest
• And finally...

• Funds with February 2026 year-ends must submit their 2nd levy returns and payments by 25 March 2026;
• Funds with August 2026 year-ends must submit their 1st levy returns and payments by 25 March 2026; and
• Funds with February 2025 year-ends must submit their final levy returns and payments by 28 February 2026.

• Annemarie Nel CFP® (061-446 073)
• Christina Linge (061-446 075)
• Dennis Fabianus (061-446 098)

• Consumer Credit Bill status update
• Pension fund industry meeting

• The Electronic Transactions Act regulations
• Dead but not done paying? Maintenance obligations after death

• AI, global power shifts and market risk
• The critical timing of dependent status

• Financial behaviour – Part 1: Why smart
  people do foolish things with money
• The 4% rule is alive and well

• Deadline for Payment: All contributions owed to a registered fund, medical aid fund, or friendly society must be paid in full and deposited into the fund’s bank account within 7 calendar days after they become due.
• Unpaid Contributions: If contributions remain unpaid after the 7 days, the outstanding amount (plus any applicable interest) becomes a debt due to the fund. The fund’s board may file a certified statement with a competent court, which will then have the same effect as a civil judgment and can be enforced accordingly.
• NAMFISA may instruct the liable person to pay the outstanding amount immediately.
• The fund’s rules must specify whether interest is charged on overdue contributions and how it is calculated.

• The Fund’s rules must be amended in line with this standard and regulation RF.R.5.8, the protection of unpaid contributions of an employer, and to make provision for the charging of interest on overdue contributions and how it is calculated.

GEN.S.10.17 Description of Plain Language

This Standard applies:

• to all financial institutions and financial intermediaries and to their boards, directors, principal officers, other officers, employees, trustees, custodians and agents; and
• in respect of all documents presented to clients of registered financial institutions and financial intermediaries.

Summary:

• Clarity and Audience Focus:
  • Documents must be written for the clients, not for the financial institution or financial intermediary.
  • Use clear, informative language, avoiding jargon or abbreviations unless explained.
• Content Guidelines:
  • Include a glossary of terms if technical terms are used.
  • Ask questions that require client responses.
  • Remove unnecessary or redundant words.
• Writing Style:
  • Use plain, everyday language, short sentences, and the active voice.
  • Write in the first person where appropriate.
  • Use a readable font (minimum 12-point typeface).
  • Use direct verbs (e.g., “apply” instead of “make an application”).
  • Use “must” where the client is required to act.
  • Avoid double negatives and complex phrasing (e.g., “at least” instead of “no fewer than”).
  • Include examples, lists, tables or visuals to aid understanding.
  • Highlight key points using bold or underline.
• After reading the document, the client should be able to understand the document, make an informed decision and understand their rights and obligations set out in the document.

What to do:

• Financial institutions and financial intermediaries should review documents provided to clients (e.g. rules of the fund, member booklets, fund forms, annual report, service level agreements, etc.) against the requirements of this standard. Where service providers draft documents, financial institutions and financial intermediaries should ensure that the service providers comply with the requirements of this standard.
• Service providers that are involved in client communication should train their staff on plain language principles and client-focused communication.

GEN.S.10.18 The fiduciary responsibilities of financial institutions and financial intermediaries and of their directors, members of boards, principal officers and other officers

This Standard applies to all financial institutions and financial intermediaries, as well as their functionaries.

Summary:

• Financial institutions, intermediaries, and their representatives owe a fiduciary duty to clients and investors.
• Duties of financial institutions and financial intermediaries:
  • Act in the best interest of clients/investors
  • Disclose all material information before any transaction or relationship
  • Avoid or manage conflicts of interest
  • Ensure compliance with this Standard by their representatives
• Duties of functionaries/ representatives of financial institutions or financial intermediaries:
  • Act in clients’/investors’ best interest
  • Keep information confidential
  • Avoid or manage conflicts of interest and disclose any that arise
  • Make decisions affecting clients/investors based on reliable information and in good faith
  • Seek expert advice when necessary 
  • Act with diligence, skill, and care in executing client/investor transactions
  • Manage affairs prudently to avoid prejudice to clients/investors
  • Comply with laws and the governance framework of the financial institution or financial intermediary
  • Provide material information to enable informed decisions
• Financial institutions, financial intermediaries and their functionaries must maintain written (hard or electronic copy) records of material dealings with clients/investors to be able to demonstrate the execution of fiduciary duties.
• The records must be kept for five years after relationship termination, or longer if requested by a competent authority.

What to do:

• Update the code of conduct of the financial institution or financial intermediary with the requirements of this standard.
• The document retention policy of the financial institution or financial intermediary should require the keeping of records of material dealings with clients/ investors for five years after relationship termination.

By sound business practice, we confirm that we have the following covers through our brokers until 30 June 2026. Details were forwarded to all clients under separate cover. Note that we are in the process of arranging cybersecurity cover.

• Fidelity cover of N$ 9,5 million, excess of N$ 250,000 (Old Mutual short term insurance).
• Public liability cover of N$ 95 million, excess of N$ 250,000 (Old Mutual short-term insurance).
• Directors' personal management liability cover of N$ 5 million per director, no excess (Momentum short-term insurance).

In a circular to fund members, the fund’s principal officer, Mrs Sophia Amoo-Chimunda, announced certain changes to its board, effective 1 January 2026. She pointed out that the strength of any retirement fund lies not only in how it manages assets, but in how it stewards trust, and emphasised that the fund’s stewardship has been built on sound governance, principled leadership, and the ability to evolve with clarity and care.

These changes reflect the fund’s ongoing commitment to strategic renewal and are aligned with principles of transformation, continuity, and regulatory compliance. In particular, the anticipated implementation of the Financial Institutions and Markets Act (FIMA) continues to inform governance decisions aimed at safeguarding members' long-term interests.

As part of this transformation journey, the Fund bids farewell to two deeply respected Trustees, Mr Tilman Friedrich and Mr Marthinuz Fabianus, whose service over many years has been integral to shaping the Fund's values and integrity. The Fund is grateful for the leadership they brought to the Board and the steady guidance they offered during times of growth and change. We are also pleased to confirm that Mr Fabianus will continue to attend Board and strategic meetings in a non-voting advisory capacity, in full compliance with Fund policies. This arrangement ensures that valuable institutional knowledge is retained and transferred responsibly during the transition period, enabling the Board to benefit.

The Fund further welcomes three new appointments to the Board.

Mrs Carmen Diehl has been appointed as a Sponsor Trustee. She is a qualified    Chartered Accountant and currently serves as Senior Manager: Projects and    Compliance at RFS Fund Administrators. Mrs Diehl brings eight years of experience in internal audit, compliance, risk management, and fund accounting within the retirement fund sector. She also serves as a co-opted member of the Benchmark Retirement Fund FIMA Committee.

Mr Vincent Shimutwikeni joins the Board as a Sponsor Trustee for a three-year term. Mr Shimutwikeni is Manager: Legal Services at RFS Fund Administrators and holds a B.Juris, LLB (Honours), and a professional certification in Governance, Risk, and Compliance. He also serves as a Director at the Retirement Funds Institute of Namibia (RFIN) and previously served as Head of Legal at the University of Namibia and as a Trustee of the Universities Retirement Fund (UNIREF).

Mr Henning Tiemann, a longstanding member and now a pensioner of the Fund, has been appointed to represent the pensioner constituency. Mr Tiemann holds a B.Comm (Industrial Psychology) and completed the Executive Management Program at the University of Cape Town. He retired in July 2025 as Executive Manager at Agra Limited after nearly 20 years with the organisation. He previously served as Chairman of the Agra Retirement Fund Management Committee and as an Employer-appointed Trustee of the Agra Retirement Fund 

With these additions, the Board now comprises the following seven Trustees: Ms Afra Schimming-Chase (Chairperson), Ms Sabrina Jacobs, Ms Malverene Theron, Mr Hermann Hentschel, Mr Henning Tiemann, Mr Vincent Shimutwikeni, and Mrs Carmen Diehl.

Transitions of this nature are a healthy part of institutional growth. Leadership changes are part of a planned evolution that upholds the Fund's stability while preparing it for the future. The Fund remains assured that its Board now holds the collective experience and judgement to guide Benchmark with consistency, transparency, and vision, and that each appointment reflects the Fund’s commitment to being Efficient, Trusted, and Namibian.
 

Mrs Carmen Diehl	Mr Vincent Shimutwikeni	Mr Henning Tiemann

• Risk Profile – Moderate, Target Objective: NCPI +5% gross of fees
• The strategy focuses on high-quality companies, evaluating management, the business, and financial strength to determine long-term true value.
• Portfolios are constructed without reference to benchmarks, meaning returns may differ significantly from market indices and peers, particularly over shorter periods. This portfolio may have higher volatility with a view to outperforming over the longer term.

• Risk Profile – Moderate High, Target Objective: NCPI + 6% gross of fees
• The strategy focuses on managing risk, investing in quality assets, and paying sensible prices. The main goal is to protect capital, avoid losses, and achieve inflation-beating returns with minimal risk.
• The manager’s unique philosophy has resulted in low correlations with other manager products on the platform and provides diversification benefits with the existing products because of this. While this manager is classified as Moderate to High, it also aims to minimise negative returns over rolling 2-year periods.

• 202601 – Changes to the board of trustees 

• Your Retirement Fund made simple - Part 1: What it is, how it works and how your money grows;
• Real Member Journey: How a Retirement Fund Helped Ndapewa Build Her Future;
• Why Updating Your Beneficiaries Can Spare Your Family Unnecessary Hardship.

• RFS 2026.01-01: Update on FIMA readiness.

•      Lovisa Indongo-Namandje chaired the meeting.

• No other matters were added, and the agenda was approved.

• The minutes were approved.

• Three new employees were appointed, all serving in the position of graduate trainee.

• Vincent Shimutwikeni (RFIN director) provided an update on the following matters:
  • RFIN Board of directors: After the elections at the AGM on 25 November 2025, the Board of directors consists of Sabrina Jacobs, Klaus Laborn, Yvette Mtolo-Phiri, Sakaria Namandje and Vincent Shimutwikeni.
  • Revised RFIN Constitution: The meeting was reminded of the due date for comments and submissions on the draft revised constitution of 27 February 2026.
  • Training initiatives for 2026:
    • A collaboration agreement between RFIN and Batseta (Council of Retirement Funds of SA) is in its final stages for accredited training for trustees, master classes for principal officers, bespoke board-specific training
    • A collaboration agreement between RFIN and 2 Namibian service providers is in its final stages on Cybersecurity Preparedness and Monitoring, and Cybersecurity Awareness training
    • RFIN received a FIMA training proposal, and it is in the process of being finalised
  • National Pension Fund
    • A summary of the proposed model was provided
    • Way forward:
      • Collaborative approach on the NPF by Namibia Savings & Investment Association (NaSIA), Namibian Employers’ Federation (NEF), Society of Actuaries of Namibia (SAN) and Retirement Funds Institute of Namibia (RFIN)
      • Will proceed with an independent, data-driven study, running in parallel with the SSC’s implementation process. The study will focus on co-existence with existing retirement funds; economic, labour-market, and social impacts; governance and regulatory considerations; and long-term sustainability of the proposed NPF in view of the stated objectives.
      • Thereafter, key stakeholders will be engaged to present the outcome of the study

• There were 67 registered funds as at 31 December 2025, of which 60 funds were active.
• All 60 funds submitted their COA return due by 31 January 2026 on time.
• Refer to the NAMFISA presentation slides for more statistics

• Refer to the NAMFISA presentation slides
• It was noted that the root causes of most complaints are a lack of communication with the members.

• The FIMA effective date is unknown
• Proposed amendments to Pension Funds Act Regulations: The proposed amendments to the Pension Funds Regulations, together with the Minister’s comments, were received. NAMFISA has considered and responded to the Minister’s comments and has resubmitted the amendments to the Minister for finalisation.
• Application of FIMA to Retirement Funds – Provisions Effective Immediately and Provisions with Delayed/Phased Commencement
  • A table outlining the various sections of FIMA applicable to retirement funds was presented, indicating whether each provision commences immediately or becomes effective only after a specified transitional period – refer to the presentation slides.
• Participants pointed out that there are inconsistencies between provisions in
  Schedule 3, ‘Transitional provisions’, and provisions in the Act and that the industry is uncertain which provisions to apply. For example, the registration of FIMA rules (6 months vs 12 months) and appointments made before FIMA remaining in force for the remainder of the specified period appointed vs persons prohibited from serving on Boards.

• None

• typed names
• scanned or photographed signatures
• clicking “I accept”
• OTPs or simple biometrics

• protect passwords, PINs, OTPs, devices, and biometric access;
• sign only final documents;
• notify immediately if credentials are compromised;
• accept liability if careless.

• verify the signature and the signer’s authority;
• check certificates for validity, suspension, or revocation;
• ensure the signature strength matches the risk.

• Internal approvals
• Routine correspondence
• Low financial or legal exposure

• Employment contracts
• Pension fund administration documents
• Commercial agreements

• Benefit allocations
• Trustee resolutions with financial impact
• Amendments to fund rules
• Settlement agreements
• Regulatory-facing documents

• Can the signature be verified?
• Is the signer identified and authorised?
• Has the document been altered after signing?
• Is the certificate (if used) valid and not revoked?

• At common law, maintenance ends on divorce or death.
• Maintenance survives death only if the parties expressly agree, in a written settlement agreement incorporated into the divorce order, that the payer’s estate must continue paying.
• Court-ordered maintenance without a written agreement (SA’s s 7(2) equivalent) automatically lapses on death.
• These principles continue under Namibia’s Dissolution of Marriages Act, 2024, which modernises procedure but does not extend maintenance beyond death by default.

• A clause binding the estate creates a contractual obligation only. It does not determine whether the exspouse is a dependant for pension purposes.
• Under section 37C, a person is a dependant if, at the moment of death, the member:
  • had a legal duty to support them, or
  • was factually supporting them.

• If a settlement agreement required maintenance until death or remarriage, a legal duty existed at death, meaning the exspouse is a legal dependant under section 37C, regardless of whether the estate must continue paying.
• If the legal duty ended on death, the ex-spouse may still qualify as a factual dependant, depending on actual reliance.
• Pension benefits fall outside the estate, so trustees must base decisions on dependency, not estate-law claims.

• A person cannot become a dependant after the member's death.
• Once someone qualifies as a dependant at death, that status does not change, though their circumstances may influence the allocation of benefits.
• Funds must conduct thorough investigations focused on the factual position at the date of death.

• It clarifies how to identify legal and factual dependants correctly.
• It outlines the procedural expectations for section 37C investigations.
• It strengthens the protective purpose of section 37C in a society with widespread financial dependency.
• It has immediate practical implications for deathbenefit governance and fund decision-making.

• Loss aversion
• Recency bias
• Overconfidence
• Confirmation bias
• Anchoring
• Herd behaviour

• The 4% rule is a gross withdrawal rate. Tax must be calculated separately; this does not invalidate the rule.
• It was never meant to justify unrealistic drawdowns like 8%, which are dangerous in volatile markets.
• It assumes inflation-linked spending, but real-life retiree spending patterns vary. Many retirees naturally spend less in mid-retirement (“the retirement smile”).

• Skipping inflation increases after poor market years
• Allowing spending to drift lower during less active years
• Adjusting drawdowns based on market context and portfolio resilience

• The popular “bucket strategy” still risks forced sales during downturns.
• A bondladder approach—matching maturing bonds to future income years—reduces this risk by ensuring cashflow stability without selling equities at a loss.

Conclusion
The 4% rule is not dead—it is misunderstood. It should be used as a compass, not a fixed set of instructions. As a disciplined starting point, it anchors expectations, protects against overly optimistic drawdowns, and supports more resilient retirementincome planning.


Read the full article by Jonathan Brummer in Moneyweb of 6 February 2026, here.