News / Local
Nssa to increase pension pay-outs
27 Apr 2022 at 07:57hrs | Views
NATIONAL Social Security Agency (Nssa) has promised to increase pension pay-outs starting from next month and it will be backdated to this month.
In an interview with Daily News on Sunday yesterday, Nssa director of social services Shepherd Muperi said price hikes have eroded the current pension payouts.
"$3 000 is for the survivors who only earn about 40 percent of the minimum retirement pension, …minimum retirement pension is $7 440 rate. We have already done the process to review the pension levels and this $7 740 will be raised to around $9 000 and it will be aligned to US$60 by the time of adjustment …we will continue to track the official bank rate," said Muperi.
Muperi however, said pensioners should not depend on Nssa pay-outs because just like any other company they are affected by inflation and currency devaluation.
"Nssa was created as a safety net and it had a ceiling…highest earner and lowest earner were contributing same amounts to promote coexistence …however Nssa is offering other non-monetary benefits like zero bank rates at POSB and NBS, ten percent discounts on basic commodities at OK and Spar and loans so that they can sustain their livelihood," said Muperi.
He said they are also going to increase the pay-outs in July adding that they are aiming to raise it to US$90. Pensioners interviewed by the Daily News on Sunday expressed concern on the increment saying with the on-going price hikes and inflation the money will not be able to sustain their lives.
Rejina Jekwa, a widow, said the amount is insignificant particularly with the ever increasing inflation.
"After buying a mealie meal and some vegetables all the money will be depleted and I will not have bus fare to go back home, even if they increase it will not be enough to cater for my needs ," she said. Proud Moyo said as a pensioner his salary cannot meet his basic needs and his health doesn't allow him to do difficult jobs.
"I used to earn US$80 and now my salary if I convert it on the market I cannot get US$20, it's heart-breaking but we are happy that at least they have recognised our plight," he said.
In an interview with Daily News on Sunday yesterday, Nssa director of social services Shepherd Muperi said price hikes have eroded the current pension payouts.
"$3 000 is for the survivors who only earn about 40 percent of the minimum retirement pension, …minimum retirement pension is $7 440 rate. We have already done the process to review the pension levels and this $7 740 will be raised to around $9 000 and it will be aligned to US$60 by the time of adjustment …we will continue to track the official bank rate," said Muperi.
Muperi however, said pensioners should not depend on Nssa pay-outs because just like any other company they are affected by inflation and currency devaluation.
"Nssa was created as a safety net and it had a ceiling…highest earner and lowest earner were contributing same amounts to promote coexistence …however Nssa is offering other non-monetary benefits like zero bank rates at POSB and NBS, ten percent discounts on basic commodities at OK and Spar and loans so that they can sustain their livelihood," said Muperi.
He said they are also going to increase the pay-outs in July adding that they are aiming to raise it to US$90. Pensioners interviewed by the Daily News on Sunday expressed concern on the increment saying with the on-going price hikes and inflation the money will not be able to sustain their lives.
Rejina Jekwa, a widow, said the amount is insignificant particularly with the ever increasing inflation.
"After buying a mealie meal and some vegetables all the money will be depleted and I will not have bus fare to go back home, even if they increase it will not be enough to cater for my needs ," she said. Proud Moyo said as a pensioner his salary cannot meet his basic needs and his health doesn't allow him to do difficult jobs.
"I used to earn US$80 and now my salary if I convert it on the market I cannot get US$20, it's heart-breaking but we are happy that at least they have recognised our plight," he said.
Source - DailyNews
