NBM PAL Unrestricted Pension Fund Declares 17% Annual Final Bonus 2021

NBM Pensions Administration Limited (NBM PAL) has declared an annual final bonus of 17% to members participating in the NBM PAL Unrestricted Pension Fund for the financial year ending 31 December 2021.

NBM PAL Unrestricted Pension Fund is administered by NBM PAL and has a pool of several employers, who participate in the Fund for the benefit of their respective staff members.

NBM PAL Chief Executive William Mabulekesi said in an interview yesterday that it is no longer a hidden secret to state that NBM PAL’s unrestricted pension fund has been on a growth trajectory as evidenced by the statement of competitive bonuses over the past few years, compared to other pension funds in the sector.

CEO of NBM PAL, William Mabulekesi

He, however, hinted that the top-notch performance in 2021 is largely attributable to lucrative investment opportunities where pension contributions are locked in resulting in decent investment returns.

“In this regard, members should expect their retirement accounts to grow by 17% on balances as of 31st December 2021. This is a decent performance considering the underlying fundamentals of the operating environment, which is still hostile and volatile due to post-pandemic fallout and the Russian invasion of Ukraine.

“The war contributed significantly to shortages of strategic commodities such as gas, crude oil and fertilizers, which triggered inflationary pressures globally.” said Mabulekesi.

He also pointed out that the Fund declares a final bonus from a return on investment made in that particular year, adding that its unique approach in managing pension funds allows it to achieve high returns on investment, which improves pension benefits for members.

“The NBM PAL Bonus policy is unique in that everything declared is attributed to members’ accounts, and this is an approach known as full vesting. This contrasts with other industry players who retain part of the final premium for economic smoothing in difficult years.

“Our commitment is to declare bonuses, which are higher than the annual inflation of a given year. In this regard, a decent bonus of 17% is higher than the average inflation rate of 9.3% for the year 2021,” Mabulekesi explained.

Recently, Nico Pensions declared a 14% bonus while Old Mutual declared an 11% bonus, according to the two companies’ published statements in the media.

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Dolores W. Simon