On March 1,2011, Malawi’s Parliament passed a bill establishing a system of mandatory individual accounts for most workers in the country. Although it has not yet been signed by the president, he is expected to sign the bill into law soon. While many of the specific details (such as coverage, investment rules and withdrawal rules) are not yet available, the following key provisions of the bill were made public.
Before said bill, there was no public pension system for private-sector workers in Malawi. However, the government encouraged state-run and private-sector companies through favorable tax policy to provide voluntary occupational retirement plans to their employees (by 2008, around 150,000 workers were covered by 450 private pension funds). Public-sector workers are covered under the pay-as-you-go Government Public Pension Scheme (GPPS).
Sources:"Malawi," International Update, October 2005, US Social Security Administration; "Financial Sector Assessment: Malawi," World Bank andInternational Monetary Fund, July 2008; "MCTU Happy with New Pension Law as Government is Defeated," Malawi Voice, March 1, 2011; "Malawi Modifies Pension Bill," The Nation, March 1, 2011; "House Passes Pension Bill," BNL Times¸ March 2, 2011; "Malawi: New Pension Scheme Introduced," US Library of Congress, March 9, 2011.