NSSA compliance efforts result in increased pension scheme contributions

Contributions to the National Pension Scheme administered by the National Social Security Authority went up last year by 43 percent, from $173,4 million in 2013 to $248,3 million in 2014.

This was despite the challenging economic climate, which saw at least 52 companies closing last year, with the loss of almost 7 000 jobs and many companies downsizing.

"Many employers have reduced employment to the extent that 52 percent of the 27 000 registered employers on the authority's database employ between one and five people," Public Service, Labour and Social Welfare secretary Ngoni Masoka said in the chairman's statement accompanying NSSA's abridged financial statements, which were published on Friday.

NSSA general manager James Matiza, in his report accompanying the financial statements, said the large increase in contributions was attributable to the concerted effort of NSSA's inspectorate division to visit employers "buttressed by optimal resourcing of the division".

He said there were 2 541 new registrations of employers last year against 1 439 cessations. The total number of registered employers stood at 27 246 at the end of the year, an increase of 4,2 percent over the previous year.

Total Worker's Compensation Insurance Fund (WCIF) premiums went down by 21 percent from $58,5 million in 2013 to $48,7 million, a decrease attributable to a 10 percent reduction in assessed premium rates in line with an actuarial recommendation.

NSSA paid out $124,8 million in pension scheme benefits and WCIF claims, compared to a total of $99,2 million the previous year, an increase of 25 percent. Pension scheme benefits included retirement benefits, invalidity benefits and survivor's benefits.

The time limit for claiming grants, which is normally five years, was suspended for the whole of last year to allow those whose grant claims had been rejected or would have been rejected for being submitted late to claim them. A significant number of late retirement and survivor's grant claims were received, Mr Matiza said.

There were 169 316 National Pension Scheme beneficiaries in 2014, compared to 167 926 in 2013. The number of WCIF beneficiaries was 9 838, compared to 9 313 the previous year.

Investment income increased from $19,1 million in 2013 to $34,9 million last year. The major contributor to this increase related to a dividend in specie from Cottco amounting to $13,1 million, Mr Matiza said.

The NSSA Group's assets grew by 10 percent from $1,038 billion in 2013 to $1,137 billion.

Operating expenses went up from $43,9 million in 2013 to $95,2 million, chiefly as a result of allowances for credit losses of $43,4 million and bad debts written off amounting to $9,4 million.

There were 5 491 serious injuries at work and 98 fatalities last year compared to 5 666 serious occupational injuries and 76 fatalities the previous year. The lost time injury frequency rate (LITFR) was 2,27, a slight improvement from the 2,34 LITFR in 2013.