News / National
NSSA to review pensions
04 Feb 2019 at 07:45hrs | Views
The National Social Security Authority has submitted a request to Government for an upward review of monthly pension payouts.
This was said by acting NSSA general manager Mr David Makwara when he appeared before the Parliamentary Portfolio Committee on Public Service, Labour and Social Welfare last week together with other NSSA senior managers.
Pensioners are getting a minimum of $80 per month which has been eroded by inflation.
"I am happy to mention that we have already submitted a paper to the ministry (Public, Service, Labour and Social Welfare) for consideration to review the pension payout which is largely based on the recommendations from the actuaries," said Mr Makwara.
"So, it's a matter that is under consideration by the ministry and due process is being followed."
Pensioners have constantly complained that the payouts they got from NSSA were low and not in tandem with the high cost of living. Mr Makwara said NSSA had not been spared from the economic environment that had resulted in a decline in contributions due to company closures.
"Contributions to the authority have been subdued due to company closures and retrenchments," he said. "The revenues for 2017 have declined by 1 percent from $354 million in 2016 to $349,6 million in 2017.
"Contributions and premiums alone declined by 11 percent from $276,5 million in 2016 to $247 million in 2017."
Mr Makwara admitted that the institution had been affected by poor corporate governance in the past, but said Government was doing its best to promote sound management.
"We acknowledge that there has been a lot that has been happening at the institution. It has been battered by bad perception, some of it true and some of it perceived by the market," he said.
"We are certainly aware of the need to institute (sound) corporate governance at NSSA. You will find that most of the issues raised are to do with inefficiencies and bad investment decisions that were undertaken at some point.
"I am happy to say that the minister (Dr Sekai Nzenza) is doing her best to change things and is putting up structures to address governance issues, for example, board competencies and a proper structure fit for the purpose.
"I am sure once the board is in place all the other areas will be addressed."
This was said by acting NSSA general manager Mr David Makwara when he appeared before the Parliamentary Portfolio Committee on Public Service, Labour and Social Welfare last week together with other NSSA senior managers.
Pensioners are getting a minimum of $80 per month which has been eroded by inflation.
"I am happy to mention that we have already submitted a paper to the ministry (Public, Service, Labour and Social Welfare) for consideration to review the pension payout which is largely based on the recommendations from the actuaries," said Mr Makwara.
"So, it's a matter that is under consideration by the ministry and due process is being followed."
Pensioners have constantly complained that the payouts they got from NSSA were low and not in tandem with the high cost of living. Mr Makwara said NSSA had not been spared from the economic environment that had resulted in a decline in contributions due to company closures.
"Contributions to the authority have been subdued due to company closures and retrenchments," he said. "The revenues for 2017 have declined by 1 percent from $354 million in 2016 to $349,6 million in 2017.
"Contributions and premiums alone declined by 11 percent from $276,5 million in 2016 to $247 million in 2017."
Mr Makwara admitted that the institution had been affected by poor corporate governance in the past, but said Government was doing its best to promote sound management.
"We acknowledge that there has been a lot that has been happening at the institution. It has been battered by bad perception, some of it true and some of it perceived by the market," he said.
"We are certainly aware of the need to institute (sound) corporate governance at NSSA. You will find that most of the issues raised are to do with inefficiencies and bad investment decisions that were undertaken at some point.
"I am happy to say that the minister (Dr Sekai Nzenza) is doing her best to change things and is putting up structures to address governance issues, for example, board competencies and a proper structure fit for the purpose.
"I am sure once the board is in place all the other areas will be addressed."
Source - the herald
