adminThe age at which a National Social Security Authority retirement pension can be claimed varies between 55 and 65 but is the same for men and women.
It tends to be taken for granted by most people that following independence measures were adopted to ensure that men and women are treated equally, in line with both the current and independence Constitution, which stipulate that there should be no discrimination on the basis of gender.
That was not the case before independence, when there was job discrimination on the basis of gender as well as race and even salaries could be different for men and women doing the same job.
It was somewhat surprising, therefore, to receive a question from one correspondent, who asked whether it was true that women qualify for pension at the age of 55. The earliest retirement age for a NSSA pension is normally 60, except where a person has been employed in a job categorised as arduous.
In some countries there is a difference in the retirement age and pensionable age of men and women. In the United Kingdom, for instance, up until 2010 women could claim their state pension at 60, whereas men had to wait until they were 65 for their pension.
There is still a difference in the pensionable age for men and women in the United Kingdom but efforts are underway to eliminate this difference, so that by November 2018, the retirement age for women, as well as men, will be 65. Thereafter there are plans to increase the retirement age equally for both men and women, so that by October 2020 it will be 66 for both men and women. By no later than 2046 and possibly much earlier, the retirement age for both men and women is due to rise to 68.
With the NSSA pension scheme having only come into effect in October 1994, the pensionable age has always been the same for men and women.
The standard retirement age at which a NSSA retirement pension is payable is 60 for both men and women who have retired at that age and are no longer working.
Men and women who remain in employment after the age of 60 continue to make pension fund contributions. They only become eligible for their pension and stop making contributions at age 65 or when they retire and stop working, whichever comes sooner.
The early retirement age of 55 only applies to those who have been employed for at least seven of the previous 10 years in a job categorised as arduous, such as agricultural work, heavy truck driving, quarrying and some forestry and mining jobs.
Preliminary results of the population census carried out in August 2012 show that Zimbabwe’s population stands at almost 13 million people. Of this population, 6,7 million are female while 6,2 are male.
It is believed that women who reach old age tend to live more years in retirement than men. There is therefore a greater likelihood of their exhausting their savings during their retirement, making social security particularly important for them.
It might seem surprising, therefore, that in some countries women are able to start drawing their pension earlier than men. The reason is perhaps found in the fact that in many countries women used to retire at an earlier age than men.
Just as there is no difference in the age at which men and women become eligible for a retirement pension, there is no difference either in the contribution rate or benefits for men and women.
Benefits are determined solely by the contribution period and the contributor’s insurable earnings prior to the contributor or his/her dependants becoming eligible for the benefit. This applies to both men and women.
Those with identical insurable earnings at retirement and identical contribution histories should receive the same benefit, regardless of whether they are men or women. Differences in pensions received by different pensioners is attributable solely to differences in either their insurable earnings at retirement or contribution period.
The contribution rate for everyone in formal employment earning up to $700 a month is 3,5 percent of basic earnings. For those earning more than $700 the contribution is 3,5 percent of $700. The employer pays the same amount as each employee.
When a pensioner dies or a national pension scheme contributor dies before reaching retirement age, whether the contributor was a man or a woman, the surviving spouse and children are entitled to a survivor’s grant or pension that depends on the contributor’s contribution period.
If contributions have been paid for 10 years or more, the husband or wife of the deceased contributor receives 40% of the pension the contributor would have been entitled to had he or she been entitled to a retirement pension at that time. The children receive a further 40%.
This means that together the surviving family receives a pension equivalent to 80% of the pension the contributor would have been entitled to. The minimum survivor’s pension is $30, which is 50% of the minimum retirement pension.If contributions have been paid for less than 120 months but not less than 12 months, a grant is paid instead of a pension.
If a person under the age of 60 who has been contributing to the national pension scheme, whether the person is a man or a woman, becomes permanently incapable of work due to a medical condition or disability, he or she can apply for an invalidity grant or pension.
An invalidity pension is payable if contributions have been paid to the scheme for at least 12 months. If contributions have been made for less than that but for at least six months, an invalidity grant is payable. However, the person’s permanent inability to work must be medically certifiable.
Talking Social Security is published weekly by the National Social Security Authority as a public service. There is also a weekly radio programme on social security, PaMhepo neNssa/Emoyeni leNSSA, at 6.50PM every Thursday on Radio Zimbabwe and Friday on National FM. There is another social security programme on Star FM on Wednesdays at 5.30PM. Readers can e-mail issues they would like dealt with in this column to [email protected] <mailto:[email protected]> or text them to 0772-307913. Those with individual queries should contact their local NSSA office or telephone NSSA on (04) 706523/5, 706545/9, or 799030/1.
Online Reporter