The National Social Security Authority (Nssa) says it is
ready to administer its voluntary pension scheme for the informal sector.
“Our actuaries are currently working on the model and
design of the scheme,” Nssa chairperson Robin Vela said, adding that the
pensions administrator aims to launch the voluntary informal scheme before the
end of the first quarter of 2018.
Zimbabwe in 1989 set up a compulsory national social
security pension scheme which is provided for by Nssa.
This scheme is important as it provides some form of
security during retirement, invalidity or death of a breadwinner who was a
member of the scheme.
Since operations by Nssa started in October 1994 there have
only been two schemes: the National Pension Scheme and the Workers Compensation
Insurance Fund.
These two schemes only cover members in formal employment.
However, the informal sector, small to medium enterprises
and domestic workers are not included.
The new scheme, which was expected to have been operational
by the end of this year, will target these previously excluded groups.
According to Nssa, 72 percent of people in the informal
sector do not contribute to any social security scheme. The sector makes up 70
percent of Zimbabwe’s economic activity and contributes more than 50 percent to
the country’s gross domestic product, according to official statistics.
In terms of social security systems Zimbabwe is lagging
behind other countries in the region and globally.
In India for example the Atal Pension Yojana is open to all
Indian citizens in the 18-40 age group, whether they are formally or informally
employed.
Meanwhile, Vela said the minimum retirement pension monthly
pay-out was increased from $60 to $80 from October 1, 2017, in line with the
organisation’s desire to deliver a liveable pension to our pensioners.
“The 33,3 percent
increase was arrived at on the recommendation of the authority’s
independent actuaries who were tasked with coming up with a sustainable
increment,” he said.
Vela added that Nssa’s performance has continued to improve
with actual management accounts to end October showing, for the year end
December 31, 2017, a projected double digit percentile increase in all the key
matrices of fund size — investment income, and profitability in excess of the
$100 million achieved in the prior year.
“Taking all this into consideration, the board (using its
discretion) has approved a bonus payment equivalent to a 13th cheque to all
pensioners with their December 2017 pension,” he said.
As part of strategies to make life easier for pensioners,
Nssa successfully engaged banks for exemption of bank charges to pensioners,
senior citizens who are 60 years and above.
Currently, all 14 banks that hold Nssa pensioner accounts
are offering this service. Daily News
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