50 percent boost for pensioners

PENSION pay-outs will be reviewed by up to 50 percent this month and be progressively adjusted in subsequent months subject to “affordability and sustainability” to cushion pensioners from recent price increases.

However, the loss of value of the Zimbabwe dollar and rising inflation have since been contained after recent Government interventions.

The National Social Security Authority (Nssa) told our Harare Bureau that it had reviewed pay-outs of its two schemes — the Pension and Other Benefits Scheme (POBS) and the Accident Prevention and Workers Compensation Scheme ( APWCS) — with effect from August 1, 2022.

A supplementary payroll for August is being processed to cover the difference of payments made earlier.

Nssa board chairperson Dr Percy Toriro said the Authority would now conduct monthly assessments of its benefits.

“Following an actuarial review of our two schemes, we obtained requisite approvals to increase benefits under POBS by 50 percent, which translates to a minimum retiree pension of $24 000, from $16 000. Those under APWCS will enjoy a 39 percent increase, which puts their minimum pension at $30 000, up from $21 600,” he said.

The Authority is in the process of switching to a self-adjusting mechanism that will protect pensioners’ savings from value erosion.

Pension contributions are currently split between employee and employer at 4,5 percent each, which gives an effective rate of 9 percent.

Other pension funds in the region have an effective rate of 20 percent. Since last year Nssa has been periodically reviewing benefits and other non-monetary benefits.

Clinics that will offer pensioners free primary healthcare are presently being established. Public Service, Labour and Social Welfare Minister Professor Paul Mavima opened the first clinic in Harare last Wednesday.