Information gaps faulted for unclaimed pension benefits

The value of Malawi's Default Pension Fund has risen to about K145 billion, largely driven by investment returns, but fund administrators say a lack of public awareness is preventing many former workers from claiming retirement benefits. The Reserve Bank of Malawi (RBM) appointed NBM Pension Administration Limited to manage the interim Default Fund, which holds inactive, or unclaimed, retirement accounts of employees who have left their jobs. In an interview, NBM Pensions Administration Limited Business Development Manager James Ngalande said the fund had grown from about K103 billion received through the transfer of dormant pension benefits to around K145 billion after investment income was credited to members' balances. "The fund has really grown, especially because of the investment income that has been applied to the balances," Ngalande said. The Default Fund was established under the Pension Act of 2024 to receive retirement benefits that remain unclaimed for six months after becoming payable. Ngalande said the final third tranche of transfers into the fund closed on January 1, 2026, with about K103 billion having been transferred from pension fund administrators. He said, since then, only relatively small amounts have been added as they comprise newly dormant benefits transferred after the six-month threshold. RBM spokesperson Boston Maliketi Banda said access to pension benefits was governed by the law and that only members who meet the prescribed eligibility conditions could receive payments. "The fact that approximately K6 billion has been claimed from the Default Fund out of over K103 billion transferred should not be interpreted as an indication that members are facing challenges in accessing their benefits. "Rather, it reflects the fact that only those members who have met the legal conditions for accessing their pension benefits have made claims," Banda said. He said the remaining funds continued to be securely invested on behalf of members until they qualify to receive them.

WIRE — The value of Malawi's Default Pension Fund has risen to about K145 billion, largely driven by investment returns, but fund administrators say a lack of public awareness is preventing many former workers from claiming retirement benefits. The Reserve Bank of Malawi (RBM) appointed NBM Pension Administration Limited to manage the interim Default Fund, which holds inactive, or unclaimed, retirement accounts of employees who have left their jobs. In an interview, NBM Pensions Administration Limited Business Development Manager James Ngalande said the fund had grown from about K103 billion received through the transfer of dormant pension benefits to around K145 billion after investment income was credited to members' balances. "The fund has really grown, especially because of the investment income that has been applied to the balances," Ngalande said. The Default Fund was established under the Pension Act of 2024 to receive retirement benefits that remain unclaimed for six months after becoming payable. Ngalande said the final third tranche of transfers into the fund closed on January 1, 2026, with about K103 billion having been transferred from pension fund administrators. He said, since then, only relatively small amounts have been added as they comprise newly dormant benefits transferred after the six-month threshold. RBM spokesperson Boston Maliketi Banda said access to pension benefits was governed by the law and that only members who meet the prescribed eligibility conditions could receive payments. "The fact that approximately K6 billion has been claimed from the Default Fund out of over K103 billion transferred should not be interpreted as an indication that members are facing challenges in accessing their benefits. "Rather, it reflects the fact that only those members who have met the legal conditions for accessing their pension benefits have made claims," Banda said. He said the remaining funds continued to be securely invested on behalf of members until they qualify to receive them.

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