Monthly pen­sion pay­outs in­creased

The Herald (Zimbabwe) - - Front Page - Ti­nashe Ma­kichi Busi­ness Re­porter

GOV­ERN­MENT has di­rected the Na­tional So­cial Se­cu­rity Au­thor­ity (NSSA) to in­crease monthly pen­sion pay­outs to $100 in the first quar­ter of this year and grad­u­ally raise the fig­ure to $150 by the end of the first half.

NSSA is cur­rently pay­ing out a mea­gre $60 which has proved to be in­ad­e­quate for pen­sion­ers.

Pub­lic Ser­vice, Labour and So­cial Wel­fare Min­is­ter Prisca Mup­fu­mira told The Her­ald this week that NSSA had been tasked to se­ri­ously con­sider im­prov­ing the wel­fare of pen­sion­ers.

“We un­der­stand there are sev­eral in­vest­ments which were made by NSSA in the past, some of which failed to ma­te­ri­alise while oth­ers are do­ing quite well.

“How­ever, as Gov­ern­ment we are of the opin­ion that the $60 which is cur­rently be­ing paid out to pen­sion­ers is not enough and some­thing must be done to ad­dress the sit­u­a­tion,” said Min­is­ter Mup­fu­mira.

“We have since given a di­rec­tive to the NSSA board to come out with strate­gies to gen­er­ate funds which will ul­ti­mately see the au­thor­ity in­creas­ing the cur­rent pen­sion pay­out by March 31, 2017. This has to be done be­cause pen­sion­ers’ wel­fare should be a pri­or­ity.”

She added that the pay­outs should be in­creased to $150 by the end of the se­cond quar­ter.

Min­is­ter Mup­fu­mira said in pur- suit of the new in­vest­ment strat­egy, the au­thor­ity would push for board rep­re­sen­ta­tions in all the ar­eas it was in­vest­ing in.

“We have seen that NSSA has been los­ing a lot of money in in­vest­ments where they just in­vested and never both­ered to mon­i­tor. There­fore, it is high time that there must be a rep­re­sen­ta­tion of NSSA in boards of all in­vest­ments which they made,” she said.

NSSA’s in­vest­ment port­fo­lio in­cludes money mar­ket, prop­erty, short- and long-term in­vest­ments in as­so­ciates and sub­sidiaries as well as land in­ven­tory and deals re­ferred to as other in­vest­ments .

Fol­low­ing the di­rec­tive by Gov­ern­ment, NSSA has been re­view­ing its cur­rent in­vest­ment port­fo­lio and will be tak­ing a de­ci­sion to ei­ther dis­pose of non-per­form­ing as­sets or con­sol­i­date its in­ter­ests in ap­pro­pri­ate ve­hi­cles.

Min­is­ter Mup­fu­mira also said NSSA would ac­tively in­vest in de­serv­ing na­tional strate­gic projects and the pri­vate sec­tor.

“It is quite crit­i­cal that NSSA in­vests in de­serv­ing projects and pri­vate sec­tor com­pa­nies be­cause by do­ing that we will be cre­at­ing fur­ther em­ploy­ment that will boost pen­sion con­tri­bu­tions,” she said.

In pur­suit of im­prov­ing con­ve­nience, re­duc­ing costs and lever­ag­ing tech­nol­ogy, NSSA has be­gun a cam­paign to mi­grate pen­sion­ers to mo­bile pay­ment plat­forms.

Min­is­ter Mup­fu­mira

Newspapers in English

Newspapers from Zimbabwe

© PressReader. All rights reserved.