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Zvamaida Murwira Senior Reporter
THE recently-appointed National Social Security Authority board will consider whether to fix term limits for its chief executive and other conditions of service among an array of issues faced by the parastatal, the National Assembly heard yesterday.
Public Service, Labour and Social Services Minister Prisca Mupfumira said the board would also consider whether it was feasible to review the minimum monthly pensions NSSA was paying out.
Minister Mupfumira was responding to the portfolio committee report on Public Service, Labour and Social Services that was tabled recently.
One of the recommendations the committee had made was that there be two, five-year two terms of office for NSSA chief executive only renewable subject to performance and the incumbent’s character and achievements.
“Term limits for the CEO will be discussed with the NSSA board and also with reference to the National Code on Corporate Governance in Zimbabwe. The Government of Zimbabwe is currently looking at contracts for all parastatal heads,” said Minister Mupfumira. The committee also recommended that NSSA should increase its monthly pension minimum benefit from $60 to $150 on the basis of the widespread multi-million dollar projects it was engaged in. “I want to say this is desirable but we have to consult actuaries on the impact this would have to the fund and a due diligence will have to be done on the impact these monthly contributions would have on future payments of benefits,” said Minister Mupfumira.
“Multi-million dollar projects referred to in the report are meant to preserve value for future payments of pensions.”
Another recommendation was that NSSA should build its own referral hospitals and clinics around the country in consultation with beneficiaries.
Minister Mupfumira said what was critical to note was that NSSA was not in the business of providing health services despite owning some health facilities.
“NSSA board will discuss the issue of building hospitals countrywide. At the moment, NSSA had invested in Ekhusileni Medical Centre and Chitungwiza South Medical Centre. The priority at the moment is to construct a hospital and lease it out to professionals in the health field,” she said. There was a recommendation that there be a downward review of the retirement age from 55-60 to 45-50 years.
Minister Mupfumira said statistics appeared to show that people now lived longer than before and longevity had become a threat to most social security schemes worldwide. “Therefore further consultations are necessary and will involve actuaries on the impact of reducing retirement age on the fund,” she said.
Online Reporter