Claim procedure

Payment processing

CPS draws guidance from the Pension Act and Payment of Benefits Directive in processing pension withdrawals by members. The regulation identifies the following conditions for payment of benefits in respect of pension funds;

  • Retirement
  • change of employer
  • death of the member
  • early payment benefits
  • employee leaving Malawi permanently

Above all, CPS ensure that all payments are done within the prescribed 14 days period.


Upon getting the retirement notice of the member, CPS carries out the following tasks;

  • send updated statement to the retiring member
  • confirm member’s age on ID with the retirement age of the Fund
  • check member’s total benefits against threshold in the Payments of benefits directive
  • make payment in accordance with the payment of benefits directive i.e. in full if benefits are within the threshold and 40% if above the threshold
  • obtain annuity quotations from Life Insurance Companies for the 60% balance and send to the member for a decision
  • Transfer the 60% balance for annuity to the Life Insurance company of the member’s choice

Change of employer

In the event that the employee has changed employment and wishes to transfer the pension benefits to the administrator of the new employer, CPS;

  • updates member’s position with latest member bonuses
  • Makes payment to the member’s new pension administrator indicated in the member’s withdrawal instruction

For inward transfers, CPS issues a receipt in triplicate, one to the administrator, a copy to the beneficiary member and another for filing.  In addition, the members’ data base is updated to reflect the incoming transfer.


CPS ensures all its members complete the nomination form to nominate beneficiaries  In the event of death of the member, CPS undertakes the following;

  • confirm if all required documents are provided i.e. death certificate or letter from Traditional Authority or letter from a licensed medical practitioner
  • update member’s position with latest member bonuses
  • distribute benefits according to the member’s nominated beneficiaries in line with the information provided on the member’s nomination forms.
  • make payment to beneficiaries above 18 years
  • open a separate trust account  for beneficiaries who are minors
  • make payment to the minor’s guardian upon receipt of instruction for minor’s upkeep.

Early pension payments

For employees who have left employment and wish to access their benefits, CPS carries out the following;

  • confirm with the employer  the date the member left employment to ensure that six months period has elapsed
  • check  with the member or employer’s instruction to confirm that  the member  is not employed elsewhere
  • update the member’s position with latest member bonuses
  • pay the member the total benefits if they do not exceed K500,000.00
  • pay the member the employee’s own contributions and associated interest only if combined benefits exceed K500,000.00.
  • write the regulator for prior approval if employee’s own contribution and associated interest exceeds K500,000.00.
  • upon RBM approval, pay the member his/her contributions with interest and  retain the employer portion with interest in the fund till the member attains retirement

Member leaving Malawi permanently

If a member is leaving Malawi permanently, CPS carries out the following:

  • checks if a member has a permanent residence permit or citizenship of the destination   country or has an approval letter signed by the Chief immigration Officer renouncing the Malawian citizenship
  • Pays 40% on granting of application
  • pays the remaining 60% after 12 months from date of initial payment

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