×
NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

NSSA to hike pensions

News
THE National Social Security Authority (NSSA) has written to the Ministry of Labour seeking permission to increase the payable minimum pensions upwards as a way of cushioning pensioners.

THE National Social Security Authority (NSSA) has written to the Ministry of Labour seeking permission to increase the payable minimum pensions upwards as a way of cushioning pensioners.

Report by Victoria Mtomba Business Reporter

NSSA is the statutory corporate body tasked by the government to provide social security.

At the moment, pensioners on the national pension retirement scheme receive $40 month basis, while widows get $20 per month, $20 for invalidity and $300 as funeral grants for burial expenses.

“The NSSA board made a recommendation to increase minimum pensions to the parent ministry that is the Ministry of Labour,” NSSA general manager James Matiza said.

“We are waiting for a response for that recommendation to adjust minimum pensions upwards.”

Matiza, however, could not divulge further details regarding the extent of the adjustment, but it is understood that monthly pensions would be increased from $40 to $60.

He said the NSSA Act indicated that the NSSA board, after considering the economic outlook, could adjust the pension’s contributions.

“People are getting low pensions and it is in this view that the board thought it would be wiser to raise the pensions so that people can buy more,” he said.

Many pensioners are getting $40 dollars that cannot sustain them as it is far below the poverty datum line estimated at around $500 per month.

Labour and Social services secretary Lancester Museka said the ministry was happy with the recommendation and was still waiting for a response from the Finance ministry to go ahead and review the pensions upwards.

“We consulted with the Ministry of Finance on the recommendations and it has not communicated to us,” he said.

“We also want that review of the pensions as it would improve what the workers would get at the end of the day.”

Matiza said last year, 167 deaths were recorded at workplaces.

He said the authority will this year do campaigns to reduce accidents at workplaces that resulted in the authority paying out more to the workers.

Matiza could not give figures on how much was paid out for the 167 deaths as the auditors were still working on them.

The authority recorded $55,3 million national pension schemes claims in 2011 which was double from the 2010 figure of $27,2 million.

NSSA indicated in its financial statements that total income was up by 11% to $221,8 million in 2011 due to member contributions, while the national pension funds contributions were $147,4 million.

The authority’s investment income stood at $23,2 million in 2011 due to returns from the investments that the company has at the money market.