An international actuary, funded by the International Labour Organisation (ILO), is looking into issues relating to the co-existence of the National Social Security Authority (NSSA) and private pension schemes.
The actuary will also make recommendations on the optimum level of contributions to NSSA’s national pension scheme in relation to benefits. It is expected the evaluation will have been completed by the end of June and a report will be submitted to the government. NSSA and private occupational schemes are expected to be advised of the contents of the report soon afterwards.
The current low contribution levels and ceiling on insurable earnings, which is pegged at $200, mean that pension payments are also low, since the formula used to calculate pensions takes into account the length of time a pensioner has contributed to the pension scheme and the pensioner’s insurable earnings at retirement.
NSSA’s highest paid pensioner is receiving $1 447 per month, based on their contribution period and his insurable earnings when he retired.
ILO agreed to provide an international actuary at its own expense.
NSSA general manger James Matiza said the company appreciated the current pension levels, even though they might be better than those of private schemes, were inadequate, particularly for those living in urban areas, especially if they have no other pension or savings to complement their NSSA pension.
“We look to independent actuaries for guidance on such matters and hope that the recommendations of the international actuary currently undertaking an evaluation of our pension schemes will be accepted by government and other stakeholders, no matter what those recommendations may be,” said Matiza.
“People sometimes wonder why NSSA cannot pay higher pensions when it appears to have money to invest.
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“We are required to safeguard those contributions and invest them to make them grow, so that we can pay contributors an adequate pension when they retire.”
