HomeNewsNSSA claims double as companies face closures

NSSA claims double as companies face closures


THE National Social Security Authority (NSSA), Zimbabwe’s compulsory national pension scheme claims for the period ending 2011 nearly doubled to $55,3 million in the year ending 2011, as many companies continued to face viability problems.

Report by Business Reporter

NSSA paid $27,2 million in 2010. Benefits include retirement benefits, invalidity benefits, survivor’s benefits and worker’s compensation insurance fund claims.

Financial statements released by NSSA, showed that total income rose 11% to $221,8 million during the period under review largely driven by member contributions. National pension fund contributions rose to $147,4 million from $137,6 million in 2010 to $147,4 million in 2011.

“The comparative year 2010 was buoyed by the non-existence of insurable earnings ceiling and the rate of contribution which was at 8% for the period January to April 2010. On the other hand, the introduction of an insurable earnings ceiling of $200 and the reduction of the rate of contribution to 6% was fully felt in 2011,” read a statement accompanying the financials.

NSSA general manager James Matiza said while $40 per month was the minimum monthly retirement pension paid out during 2011, the maximum retirement pension continued to be $1 447.

Worker’s Compensation Insurance Fund (WCIF) premiums went down by 13% from $43,8 million in 2010 to $38,7 million last year. This was largely due to a reduction in premium rates.

“WCIF assessment rates were reduced by 20% in line with actuarial advice, as we build the three years data after dollarisation, which is needed in the rates calculation formula,” said Matiza.

NSSA’s investment income was up 21% to $23,2 million in 2011 buoyed by good returns from the money market and rental income. Investments in equities ‒ in which NSSA is one of the major institutional investors on the Zimbabwe Stock Exchange according to the financials – remained subdued.

Total assets grew by 30% from $456 million in 2010 to $592 million in 2011. NSSA’s strategic asset allocation was 30% in equities, 20% on the money market, 25% in property, 10% in prescribed assets, 10 % in housing and 5% in empowerment.

Operating expenses went up 43% from $30,4 million in 2010 to $43,5 million in 2011. “This huge rise was due to once-off activities like the computerisation project costs write-off of $0,759 million, contractual damages following arbitration award on computerisation project of $1,285 million and debtors’ provision on money market investments totalling $16,1 million,” Matiza.

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