Low pension payouts: NSSA speaks out

By Zvamaida Murwira
THE National Social Security Authority, which has been under fire from pensioners over paltry payouts, has raised the monthly payments by at least around 100 percent with effect January 2011.
This means pensions for those who retired during the Zimbabwe dollar period will see their cheques rising from US$25 to US$40.
Survivors and invalidity pensions have also been raised from US$10 to US$20 per month, but the funeral grant remains at US$200.
At a Press conference in Harare yesterday, NSSA general manager Mr James Matiza said under the Workers’ Compensation Insurance Scheme, all work injury pensions will be increased by 50 percent while the minimum work injury pensions will rise from US$15 to US$30.
Minimum spouses pensions increase from US$10 to US$20 while children’s and dependant allowances have been pegged at US$10.
The insurance premium rates will be reduced by 20 percent across all industries.
Mr Matiza said the Government had approved the pension increases after assessment by actuaries from November 2010.
The NSSA boss said the public had been unfair on them when slamming the pension payouts.
He pointed out that the increase was not triggered by the attacks and the announcement should have been made last week but they had been bogged down with other work.
“We engaged actuaries in November last year, who are like auditors, to assess and advise whether we are able to give an increase.
“They did assess and made recommendations to the board before the recommendations were taken to the minister for consideration and approval,” said the NSSA general manager.
He said while they wanted to pay better pensions, the current formula – where NSSA collects six percent of earnings below a US$200 ceiling – meant this was not possible. This means NSSA cannot tax any earnings above US$200.
“If I had the power to increase these pensions I would be the happiest person to do that because I know that I would become very popular with pensioners.
“I would just wake up and raise it to say US$200 and people would say hallelujah, but I can’t do that.”
He said the US$200 ceiling was introduced in April 2010 after some pension funds complained that they might be pushed off business.
“We understand the concept of co-existence but we are saying as the economy improves people should get better pensions because some people are surviving on pensions alone.”
The House of Assembly Portfolio Committee on Public Service, Labour and Social Welfare last week said NSSA was not following up to recover money from people who had borrowed in the Zimbabwe dollar era and used it to acquire property.
Mr Matiza said Zimbabwe dollar debts were a national problem requiring a legal instrument applicable to everyone.
“We need a law that makes us recover that money; we can’t invent our own law.
“We also have money that was locked in banks and the Reserve Bank has removed 12 zeroes so how do you account for that in your books?” asked Mr Matiza.