SPSPA unhappy with pension increase
MBABANE – The Swaziland Public Service Pensioners Association (SPSPA) is unhappy with the pension increase announced by the Public Service Pensions Fund (PSPF).
This week, the PSPF announced an approval of a pension increase of 4.5 per cent for all pensioners. The cost of living adjustment is for PSPF pensioners (retired civil servants and dependents of late civil servants) who exited before April 1, 2021.
However, it should be noted that pensioners did not receive their cost of living adjustment in the last financial year, but instead received a once-off three per cent. According to previous reports, the Swaziland Public Service Pensioners Association (SPSPA) claimed they were allegedly told that investments within the pension fund did not perform well.
“The Public Service Pension Fund is pleased to inform all pensioners that the Minister of Public Service and Administration in consultation with Board of Trustees has approved a pension increase of 4.5 per cent for all pensioners with effect April, 2021,” reads a notice released by the fund.
Comment
When reached for comment regarding the increment issued by the fund, Secretary General of SPSPA Dominic Nxumalo said they were generally unhappy with the proposed increment; however, he would further unpack the reason during the SPSPA’s meeting at SNAT Centre in Manzini on Wednesday.
PSPF Marketing Manager, Makhosazana Simelane was also reached for comment and requested to be sent an email to respond to, however, by the time of going to print the email sent had not been replied to. The reporter had requested for a general overview on the aforementioned CoLA.
Adjustment
This follows a three per cent cost of living adjustment agreement between leaders of Public Sector Associations (PSAs) and government on August 7, 2020.
The PSAs also successfully negotiated for a once-off payment of one per cent of their basic salary across the board. After a series of intense negotiations this agreement was reached. The agreement was a full and final settlement of the demands by the PSAs.
Worth noting is that government and parastatals have previously reported facing fiscal challenges which have since been exacerbated by the advent of COVID-19 of which has had segments of partial lockdowns limiting trade and in turn affecting the country’s revenue.
A cost-of-living adjustment (CoLA) is an increase made to social security and supplemental security income to counteract the effects of inflation.
According to the PSPF site, a member retires from the Public Service of the Government of Eswatini on attaining the age of 60 years, and such retirement shall be referred to as compulsory retirement except for a member who holds the office of a judge shall retire on attaining the age of 65 years.
Promoted
If a member is promoted or demoted to a rank that has an effect on his compulsory retirement age, such promotion or demotion shall, as from the date of promotion or demotion, be taken into account in determining the compulsory retirement age of that member.
A member entitled to benefits under this part shall be entitled to a pension equal to two per centum of his final pensionable salary for each completed year of his pensionable service or part thereof and the minimum pension of which a member is entitled to shall not be less than E1 000 per month or such other amount which the Board may, after the minister’s approval, fix from time to time by publication in the Gazette. Payment of the pension under this regulation shall commence on the last day of the month following retirement and shall thereafter be paid to the member until his death.