The Sunday News
Loveness Mpofu, Sunday News Reporter
THE National Social Security Authority says it will not increase its pension payouts soon until an actuarial valuation has been conducted.
NSSA had projected to increase its pension payouts to $100 per month at the beginning of this year. The minimum pension payout for retirement pensioners was increased from $60 to $80 with effect from 1 October last year. This came after widespread calls for NSSA to increase its pension payouts, which have been considered to be too low by the beneficiaries.
NSSA marketing and communications executive Mr Tendai Mutseyekwa said: “In the meantime, we are hopeful that if we continue to grow the fund at the same pace we have over the last two years, then we should be able to afford another increase. Current projections are that profits will grow at an average of 10 percent per annum over the next three years, resulting in assets hitting the $2 billion mark by 2020.”
He said the authority undertakes periodic actuarial valuations in terms of Section 26 of the NSSA Act 17:04, in order to assess long-term sustainability of the fund and also to review pay-outs based on the actuary’s advice.
“The October 2017 increase was arrived at on the recommendation of the authority’s independent actuaries who were tasked with coming up with an amount that was sustainable for the benefit of current and future pensioners. While we had hoped for $100 we could only afford to go up to $80 for the time being,” said Mr Mutseyekwa.
He said the next increase will be established after an actuarial valuation has been conducted. Actuarial valuation is done by actuaries who give out information on the payments made by the authority, in order to prevent depletion of funds by NSSA.
Last year, the actuaries advised NSSA to increase payments from $60 to $80 and at the same time increase the age of retirement from 60 to 65, an amount which was going to last until 2045.
Hence, instead of going to $100 they increased from $60 to $80. Currently, the minimum pension for survivor’s pension stands at $32 per month, children’s allowance at $32 per month and invalidity pension is at $32 per month. NSSA payouts are currently pegged at $80 per month, although the $20 increase was criticised by parliamentarians who said it was not making any notable difference. -@lvydvy1
