Calls to overhaul Namibia’s unclaimed benefits system are under the spotlight, with consumer advocates and industry players agreeing that the process of tracing beneficiaries must improve.
This comes as institutions reject suggestions that they unfairly profit from unclaimed funds.
The renewed debate follows a parliamentary motion tabled last month by member of parliament Tobie Aupindi, who called for a national audit of unclaimed pension, insurance and death benefits.
Aupindi wants stronger tracing obligations and tougher penalties for institutions that fail to reunite beneficiaries with money owed to them.
Consumer analyst Salomo Iipinge tells The Namibian that the issue goes beyond administration, arguing that it reflects a structural failure that leaves vulnerable families without money intended to protect them.
“These benefits are deferred wages and safety nets, not corporate assets.
When institutions hold these funds while families struggle, it undermines social justice and public confidence,” he says.
Iipinge says complex claims procedures, costly documentation requirements and poor access to services continue to disadvantage rural and low-income Namibians.
He warns that reforms should guard against unscrupulous tracing agents charging excessive fees to desperate families, while calling for greater transparency on interest earned on unclaimed funds.
“If institutions can find consumers when payments are overdue, they should be held to the same standard when money is owed to beneficiaries,” he adds.
Beneficiary tracing specialist Milton Louw says the current system is outdated and inaccessible to ordinary Namibians.
“The system relies heavily on the Government Gazette, which is difficult to search and not user-friendly.
Most families simply do not know where to check whether money is owed to them,” he says.
Louw revealed that more than 11 000 records worth over N$121 million in unclaimed benefits were published between 2020 and 2024, describing the database as “a significant national repository of unclaimed financial benefits”.
Inconsistent records, outdated contact details and poor data quality continue to frustrate tracing efforts, he says.
“The real issue is not which fund has the most unclaimed benefits, but that the system remains too hidden and too complicated for ordinary people,” he adds.
FOLLOWS PROCEDURES
However, financial institutions insist beneficiaries do not lose investment growth while funds remain unclaimed.
Old Mutual Namibia says it follows an unclaimed benefits framework requiring reasonable efforts to trace beneficiaries through employers, intermediaries, relatives, tracing agents and public notices.
“Returns earned on unclaimed benefits accrue for the beneficiary and are paid once the rightful claimant has been identified and verified,” says group marketing, public affairs and sustainability executive Mignon du Preez.
She urges members to keep beneficiary nominations and contact details updated to speed up future claims.
Government Institutions Pension Fund spokesperson Edwin Tjiramba on Friday said determining the total value of unclaimed benefits in a defined benefit fund is difficult because benefits can only be calculated once the reason for a member’s exit from employment is established.
The fund says only 38 members currently have unclaimed benefits linked mainly to resignations or cases where the benefit type has not yet been determined.
Tjiramba says outdated contact details, missing employer records, incomplete documentation and members relocating abroad remain the biggest challenges.
“We conduct nationwide outreach programmes, work with participating employers and communities, and advertise through newspapers, radio, social media and our website to trace beneficiaries,” he says.
The fund also encourages members to update beneficiary nomination forms annually to ensure benefits reach the correct recipients without unnecessary delays.
