NSSA explains pension payouts

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Actuaries advised NSSA that increasing pension payouts from $60 to $100 per month would deplete the pension fund before 2045, Public Service, Labour and Social Welfare Deputy Minister Tapiwa Matangaidze has said. He was responding to a question asked in Parliament last weekcabout why NSSA failed to live up to government’s promise that pensioners would be paid $80 at the end of June, with the figure rising to $150 after that. A local firm, Atchinson Actuaries and Consultants, was contracted to conduct an actuarial evaluation of the Nssa Pension and Other Benefits and Accident Prevention and Workers’ Compensation Schemes, and completed its three-year valuation last month. In January, the Public Service, Labour and Social Welfare Minister Prisca Mupfumira said pension payouts will increase to $100 in the first quarter of the year, before rising to $150 by the end of the first half. “The information given to us was that, if we move payments to increase them from $60.00 to $80.00 and then increase the age of retirement from 60 to 65, the amount is going to last us until 2045.  Hence, instead of going to $100.00, we have to increase from $60.00 to $80.00 but it is the Ministry’s wish that the pay-out should be increased should funds allow. –  Financiel Express (Online)

Listed telecoms firms, Econet has scaled down the issuance of new debit cards for its mobile money service, Ecocash in line with the central bank’s directive to monitor foreign expenditure. Local financial institutions have been battling to meet foreign payment obligations on the back of low nostro balances as foreign currency shortages in the country persist. Ecocash also suspended payment of Multichoice’s DSTV subscription at the beginning of the year. – The Herald, 31 July 2017

Diamonds from Chiadzwa will fetch around US$200 million by end of 2017 following adoption of new cleaning processes to increase their value. One million plus carats have been stock piled with cumulative output projected to top two million carats by year end. ZCDC CEO Moris Mpofu said Zimbabwe’s diamonds generally fetched low process because of hasty cleaning, giving the stones about 93.2 percent industrial and 6.8 percent gem quality. – The Sunday Mail, 30 July 2017

First Lady Grace Mugabe has demanded that the government reins in sugar producer, Tongaat Hulett to allow the Zanu PF women’s league to take over a part of the company’s Lowveld estate. In her address to the women’s league on Thursday, Grace told President Robert Mugabe that the South African company was resisting the women’s league efforts to take over. Many Zanu PF organs and party members have been eyeing Tongaat Hulett’s land for years, with public fights breaking out over some of the property. The government issued offer letters to about 300 people to take over a piece of the land owned by Tongaat Hulett. – NewsDay, 29 July 2017

By |July 31st, 2017|Categories: Headlines|

About the Author:

Kudzanai Sharara
Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.