Chronicle Editor
Business Reporter
NATIONAL Social Security Authority (NSSA) has said due to rising cost-of-living pensioners under its wing will receive a $10 000 grocery stipend and cushioning allowance.
The once-off payments would be staggered within the month to manage cashflows.
NSSA’s minimum monthly retirement pension pay-out is pegged at US$70 payable in Zimbabwe dollars at the official exchange rate.
NSSA general manager, Mr Arthur Manase said a lot of pressure is placed on NSSA to assist its pensioners and beneficiaries, particularly during this exceedingly difficult phase we are going through.
“Although we run a social security scheme, which is meant to complement pensioners’ receipts from occupational pension funds, the reality on the ground is that NSSA is now the primary, if not the only, source for pension for most retirees,” he said in a statement.
“As a result, a lot of pressure is placed on NSSA to assist its pensioners and beneficiaries, particularly during this exceedingly difficult phase we are going through.
“All NSSA beneficiaries can look forward to a once-off grocery allowance of $10 000 this month.”
Mr Manase said in addition, NSSA will be awarding pensioners with a cushioning allowance equivalent to one month’s pension while the organisation is going through the approval process to adjust pension levels accordingly.
However, Mr Manase said the organisation has the lowest contribution rates in the region.
“A comparison of the contribution rate to the NSSA pension scheme with similar schemes in the region indicates that NSSA has one of the lowest contribution rates,” he said.
“For instance, Tanzania is at 20 percent, Ghana is at 18,5 percent, Kenya and Zambia are at 10 percent compared to NSSA’s contribution rate of nine percent.”
“Furthermore, all three countries collect contributions based on full salary whereas the NSSA contribution is subject to an earnings ceiling. Zimbabwe is the only country in the Sadc region with a social security pension scheme with an insurable earning ceiling.”
Online Reporter