NSSA pays out US$55m

increase, from US$27,2 million, was largely a result of the pension increase in 2011 when it raised the monthly payout. The minimum retirement pensions were increased to US$40 a month while the survivor’s pensions were boosted to US$20 a month.
NSSA general manager Mr James Matiza disclosed this in a report accompanying the authority’s financial statements, released last week.
NSSA said, while US$40 a month was the minimum monthly retirement pension paid out in 2011, the maximum retirement pension remained at US$1 447. National pension fund contributions increased from US$137,6 million to US$147,4 million, despite the closure of many companies. The increase also defied the impact of reduction in national pension contribution rate from 8 percent to 6 percent, implemented in May 2010 and the effect was fully felt in 2011. NSSA chairman Mr Innocent Chagonda, in the chairman’s report on the financial statements, said 4 400 employees lost their jobs in 2011 due to company closures, resulting from viability problems.
Worker’s Compensation Insurance Fund premiums went down by 13 percent from US$43,8 million in 2010 to US$38,7 million last year. This was largely due to a reduction in premium rates. “WCIF assessment rates were reduced by 20 percent in line with actuarial advice as we build the three-year data after dollarisation, needed in the rates calculation formula,” Mr Matiza said. Investment income increased by 21 percent to US$23,2 million in 2011.
The income was mainly made up of money market interest and rental income, since the equities market remained subdued. Assets grew by 30 percent from US$456 million in 2010 to US$592 million in 2011.
Of that, 30 percent was in equities, 20 percent money market, 25 percent property, 10 percent prescribed assets, 10 percent housing and 5 percent empowerment.
NSSA said Occupational Safety and Health revenue jumped 37 percent to US$1,5 million against OSH expenses of US$2,3 million.
The number of injuries and deaths at work decreased in 2011.
In 2010, there were 4 410 accidents reported with 90 fatalities, while in 2011 there were 4 158 accidents recorded with 75 fatalities. The authority recorded a 43 percent increase in operating expenses from US$30,4 million in 2010 to US$43,5 million in 2011.
“This huge rise was due to once-off activities such as computerisation project costs write-off of US$0,759 million, contractual damages following arbitration award on computerisation project of US$1,285 million and debtors provision on money market investments totalling US$16,1 million,” he said.