Last week Friday, I had the pleasure of being among editors selected to learn more about the Eswatini National Pension Fund Bill, 2025 which has been piloted to change the status quo of the Eswatini National Provident Fund (ENPF) to be converted into a pension fund.
For the past two months, I’ve had several questions directed at me on my thoughts on the Bill and until last week Friday, I did not have interest because nami the person I had asked on the proposed law, her response was ‘senibadzala Sky akusasiyo yenu’ loosely translated to Sky you are over 45 so this is not your Bill.
So I lost interest there, not because I mind the fact that I am turning 47 (presents call start now) years old in December, but I figured I had no say in it.
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However, that was folly of me because the apples of my eye (my sons) turn 24 and 21, respectively and in my opinion they will definitely be beneficiaries.
ENPF Leadership Explains the Bill
Anyway, it was explained to us by the ENPF CEO Futhi Tembe whom I am sure that she even dreams about this Bill given the passion she spoke about it so intensely along with one of her executive managers General Manager Operations Miccah Nkabinde who also knows the Bill like the back of his hand.
They highlighted that the main disadvantage of the current setup of the provident fund when you reach retirement age of 60 was that you get the lump sum of your contributions.
And I rightly heard them that when money comes in bulk, say if you’ve worked almost all your life you withdraw the entire E100 000, go and buy a car and this did not go down well with our male counterparts as they highlighted that as soon as some males got the payout they decide to take a second or third wife.
It was highlighted that five ATM withdrawals later the money is blown and that is when the poverty cycle starts again in old age.
Risks of Lump Sum Withdrawals
I totally agree with them that depending on how the money is distributed, there should an amount that I receive either monthly or quarterly depending on the agreement I’ve penned down with ENPF until I meet my death.
I was talking to one of my colleagues who is in his 50s and will soon retire.
His response was “awu my friend, I took a certain portion when I turned 45 so I will not be getting much. Such a response worried me because on a daily basis we come up with a plan to get lunch or electricity units so what happens when he is out of the employee stage.
One of the presenters even highlighted that most former employees as soon as the lump sum is paid out, after a month they are first in line to register for the the E600 elderly grant.
Implementation and Enforcement Challenges
Anyway, to go with my headline today, I personally see the Bill passing, but what will be a hiccup will be the implementation stage of it.
We struggle in some instances even making Cabinet ministers adhere to Parliament resolutions, so who will enforce this new law?
I remember when my children were younger. they had child minders and the ENPF or the ministry of labour and social security would make noise about us domestic workers’ employers to deduct money from their salaries to pay their ENPF contributions. I think I only did this once given the countless of helpers I have had, but there was no ministry or officials ensuring that we do this for our gardeners or cleaners, that it why we fired them willy-nilly and vice versa they would decide that they were not coming back the next month and never to be seen again.
Need for Inclusive Regulations
When this Bill is enacted there must come detailed regulations because not everyone has a steady monthly job, for example cane cutters who are seasonal, textile workers who are from time to time retrenched because of lack of orders and labourers who end up jobless once construction has been completed at a certain mall for example.
I personally like what the Bill proposes kukhona kuvela efastelweni, but like I said I do not see the political will of government to enforcement.
History of Delays
This Bill has been delayed for many years and I remember my other mom the late former minister of labour and social security Winnie Magagula (RIP) who was so passionate the bill, one would have sworn it would pass there and then, but we are still here.
Public Education Still Needed
There seems to be some progress though this time around, but ENPF really needs to school the public about it especially the low earners and those who work in the informal sector. I can imagine money planted by dagga farmers (LOL) how far it would go. I am just kidding on that, but the possibilities are endless. Can’t my firstborn who makes beads on the side be able to save for his Lindlelantfongeni?
Meanwhile, I am yet to decide whether I go withdraw my lumpsum to take a husband or consider what the options will be once this conversion takes place.
Until next week…be kind.
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