NIC is a purpose-driven brand providing a broad range of innovative products and services for protection, savings, pensions, financing and general insurance for both the individual and corporate markets.
On behalf of the Board of Trustees, I am pleased to present the annual report of the NIC Multi-Employer Pension Scheme (“NMEPS”, “the Fund” or “the Scheme”). The Board of Trustees and our stakeholders pursued the strategy of NMEPS to deliver long term value to all members.
The mission of NMEPS together with that of its Promoter, National Insurance Co. Ltd, is to protect and enhance the pension funds of its members for a peaceful retirement. The Board of Trustees fully takes up this mission and works with dedication and commitment
with its key professional partners to deliver effectively along this philosophy. Despite the unprecedented challenges of the last financial period arising from the pandemic, NMEPS has shown resilience and commendable financial performance, resulting from the prudent, sound and professional approach adopted in its investment and fund management strategy.
COVID-19 has brought a chain of uncertainties and insecurity. It has disturbed and changed the lifestyle of people and changing the way of interaction. Amidst such challenging times, the need for good health and financial security for us and our loved ones is, more than ever, the number one priority for everyone.
Notwithstanding the adverse effects of the pandemic on the investment markets both locally and globally, I am nevertheless glad that the timely and judicious decisions taken by the Board of Trustees over the past 3 years have allowed NMEPS to withstand the financial impact and have brought positive results paving the way for a sustainable growth and promising future ahead.
Bringing such financial security in retirement and protecting the future years of NMEPS members remains the prime focus of the Board of Trustees. Its responsibility is to reassure those who depend on the Fund, now and in the future, through prudential management of entrusted funds and a concurrent forward-looking perspective. Our goal is to ensure that NMEPS continues to be financially robust so that the delivery of this promise remains uninterrupted over the years.
Key Performance Highlights
The key financial realisations of the Fund for the year under review are as follows:
Portfolio Evolution
With the implementation of an extensive early retirement programme by the two sponsoring employers, National Insurance Co. Ltd and NIC General Insurance Co. Ltd, 50% of the active membership became deferred and 48 members opted for their pensions and a total of MUR 36.5 million worth of benefits were paid.
As a result of the material change in the portfolio’s demography arising from the above mentioned early retirement programme, the Board of Trustees has mandated an independent review of the present investment policy in line with the revised profile of the membership base.
I am also happy that NMEPS has been approached by a number of new sponsoring employers for adherence. Six new applications have been submitted for regulatory clearance prior implementation.
Enhancement of Scheme Rules
Alongside, the Board of Trustees has considered and approved a revision of the scheme rules with a view to comply with latest changes in law as well as to provide further flexibilities to prospective adhering employers in customising their schemes in line with their business needs and budgets.
Changes in Statutory Landscape
With the welcoming introduction of the tax relief measures on pensions in the recent budget, a culture of retirement savings is already gaining momentum and will surely boost positive developments in the pensions industry in the medium to long term.
Now and Beyond
“We face the future with much optimism and we are confident that the strategies adopted by the Board of Trustees of NMEPS will promote and sustain growth and resilience of the Fund. These strategies, coupled with the recent statutory incentives, are promising for the pensions market at large. The prudential and forward looking approach adopted makes NMEPS well poised for continued and enhanced value creation for its members, active or deferred alike.
Thank you for your trust! “
VIKASH PEERUN
Chairman
