Mauritius Seeks Experts to Oversee Rs160 Billion for National Pension Reform

The Mauritian government has launched a formal search for specialist investment advisers to oversee the National Pensions Fund (NPF) and the National Savings Fund (NSF) as the country prepares for a major overhaul of its retirement system.

The Ministry of Finance issued a call for proposals this week, seeking firms to provide strategic guidance to the investment committees of both funds.

The move comes as Prime Minister Navin Ramgoolam moves forward with plans to reactivate the NPF, which is set to replace the Contribution Sociale Généralisée (CSG).

Strategic Management of Billions

Despite the introduction of the CSG in 2020—which halted new contributions to the NPF and NSF—the funds have remained financially resilient.

Contrary to initial concerns, assets have not depleted; rather, the NPF’s value reached approximately 160 billion rupees by the end of September 2024.

The primary objective of the new consultancy role is to:

• Optimise returns: Ensure more efficient and sustainable yields for pensioners.
• Ensure durability: Safeguard the long-term viability of the funds during the transition.
• Expert Oversight: Support the funds’ internal committees in managing existing assets while new reforms take shape.

Mandatory Requirements and Deadlines

The Ministry has set strict criteria for prospective advisers. Interested firms must be incorporated in Mauritius and maintain a physical presence on the island.

However, the government has left the door open for local firms to form consortiums with international partners to bring global expertise to the table.

“The recourse to investment experts is part of a process aimed at generating solid returns and ensuring the sustainability of the NPF and NSF as the future of the pension system takes shape,” the Ministry stated.

Pension Reform Context

A dedicated commission of experts is currently drafting recommendations for the NPF’s restructuring.

While the funds have continued to pay out pensions and grow their capital through investments over the last four years, the upcoming “reactivation” announced by the Prime Minister six months ago in the National Assembly necessitates a more robust management framework.

All proposals must be submitted to the Ministry of Finance no later than 11 February.

Source: Defi Media