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THE National Social Security Authority (NSSA) paid out $83,5 million to pensioners last year, up 51 percent from the 2012 figures driven by adjustments in contributions, the general manager, James Matiza has said. He said the fund managed to achieve above-inflation yields on its investments despite the general underperformance of the economy.
“In 2013, effective August 1, we moved pensioners from a minimum of $40 to $60 and we ended up paying $83,5 million that year.
“That was a 51 percent increase on 2012,” he said.
The number of beneficiaries, Matiza said rose to 167,926 last year from 152,952 the previous year as more people reached retirement age.
In June last year, the authority introduced a new combined employee and employer contribution rate of seven percent on insurable earnings of up to $700 per month.
Under this arrangement, the employee contributes 3,5 percent of the insurable earnings while the employer also pays 3,5 percent of the insurable earnings.
Previously, the contribution rate was six percent, three percent of which was paid by the employee and three percent by the employer.
Following the increase in contributions, the minimum retirement pension was increased from $40 per month to $60, with the minimum survivor’s pension and minimum invalidity pension going up from $20 to $30 with effect from August 2013.
These minimum pensions are paid to those whose pension, when calculated on the basis of insurable earnings and contribution period would come to less than these amounts.
It includes existing pensioners whose pension is less than these amounts.
Contributors, other than those in employment categories considered arduous, become eligible for their retirement benefit when they retire at age 60 or above or when they reach age 65, regardless of whether or not they have retired or are still in employment.
Those in arduous employment, such as agricultural work, heavy truck driving, quarrying and some mining and forestry jobs, who have attained the age of 55 and are unemployed qualify for early retirement benefit, provided they were employed in these arduous occupations for at least seven of the 10 years prior to their turning 55.
Online Reporter