Civil servants back 8% hike in pension payout
MBABANE – Civil servants have welcomed the intended increment on the lump sum payment of their pension.
Currently, the payment stands at 25 per cent but government, through the Public Service Pensions Fund (PSPF), proposed an eight per cent increment during a multi-stakeholders forum.
This means that if agreed, civil servants will take home 33 per cent of their savings when they reach the retirement age of 60 years.
Representatives of workers’ unions appreciated the intended increment, despite that it was lower than the 50 per cent they had proposed.
They stated that with the intended increment, government had shown an interest in their welfare. The civil servants said the 25 per cent was too little, resulting in them struggling to survive after retirement.
Clarity
The unions also praised government for allowing the leadership from the branches to be part of the meeting. They said the participation of the branch leadership afforded the civil servants an opportunity to engage and seek clarity on the management of the fund.
They stated that many civil servants had unanswered questions over the safety of their money.
The civil servants also appreciated government for increasing the funeral cover from E7 000 to E10 000.
“It’s a good step and we do not take it lightly. Government has increased the funeral cover from E7 000 to E10 000. It should be noted that this money is all contributed by the employer. We also appreciate the reduction of the monthly benefit for the increment of the lump sum payment,” said the Swaziland National Association of Teacher (SNAT) Secretary General (SG) Sikelela Dlamini.
Mayibongwe Masangane, SG of the Swaziland Democratic Nurses Union (SWADNU) said the fund was secretive and held less than an hour meetings with the representatives. He said government had done a tremendous job by allowing more members and extending the duration of the meeting. He said their members would be pleased by the move.
Other representatives who shared similar sentiments with SNAT and SWADNU were Thabile Zwane, who represented the National Public Service and Allied Workers Union (NPSAWU), Phumzile Masilela of Swaziland National Association of Government Accounting Personnel (SNAGAP) and Elliot Mkhatshwa, who represented the pensioners’ association.
However, as much as Mkhatshwa appreciated government for affording them an opportunity to come up with a solution over the management of the fund, he said as pensioners, they still wanted full control of the fund, without interference from government. He stated that pensioners wanted to correct the 1999 mistake where government took control of the fund.
“Government should step aside and leave the fund in the hands of pensioners,” he said.
In an interview, the Minister of Public Service, Mabulala Maseko, appreciated the civil servants and PSPF for having a fruitful meeting, which resulted in the parties deliberating on the proposed 33 per cent.
Maseko was asked about Mkhatshwa’s sentiments concerning the management of the fund. The minister said the fund was controlled by government because it was established by the employer on behalf of its employees.
Salaries
“Government has to guard against the collapse of the fund, which it established on behalf of its employees. Government contributes 15 per cent and the employees contribute 5 per cent of their basic salaries. This means that the civil servant will take home 33 per cent of their savings if the proposed percentage is agreed on,” he said. Maseko stated that government had a responsibility to manage the fund even for the employees who were still on the field of work.
“What needs to be understood is that the Fund had a deficit of about E8.6 billion. However, this is not to say it performed badly but it means the capital was not enough to start the fund. Also, the investment environment is not conducive due to the ongoing wars, meaning government has to make means to sustain the investment,” he said.
Maseko added that government had a responsibility to pay pensioners until death. He said it was not only in Eswatini where such a fund was controlled by government on behalf of the employees.