HomeNewsNSSA claims double as companies face closures

NSSA claims double as companies face closures

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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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