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Business Reporter
THE government says it will consult actuarial experts on the recommendation to have monthly pension payouts by the National Social Security Authority (NSSA) increased from $60 to $150. In a report on the operations of the pensions authority in Parliament on Tuesday, Public Service, Labour and Social Welfare Minister, Prisca Mupfumira, noted the recommendation by legislators to increase pension payments by 150 percent and a downward review of the retirement age from 55 to 45 years.

The Parliamentary Portfolio Committee on Public Service, Labour and Social Services had recommended, on the basis of the widespread multi-million dollar projects that NSSA is engaged in, that the “entity has adequate capital to increase monthly pension benefits from $60 to $150”.

The committee said the proposed amount should be payable to survivors in the event of the death of the actual member so that meaningful impact is made in their lives.

“My response is on increasing minimum monthly pensions from the current $60 to $150. I want to say this is desirable but we’ve to consult actuaries on the impact this would have on the fund and due diligence will have to be done on the impact these monthly contributions would have on the future payments of benefits,” Minister Mupfumira said.

She, however, said the august House should take into account that the multi-million dollar projects referred to in the report were meant to preserve value for future payment of pensions.

“The other recommendation is of the downwards review of the retirement age from 55 years to 45 and 50 years, which will benefit the disabled since they are already a vulnerable group. This means that members should start receiving benefits as soon as they retire, even before reaching the age of 60.”

NSSA monthly pension payments have been on a steady increase from $25 in 2010 after the adoption of the multiple currency system to $60 since 2013.

The committee also suggested that government reviews the NSSA Act to ensure employers and employees were fairly represented.

It also demanded decentralisation of services and reimbursement of beneficiaries for expenses incurred in efforts to access services such as travelling and related costs.

Minister Mupfumira said representation on the board has already been embraced as NSSA was governed on a tripartite arrangement. NSSA is fairly represented in all the 10 provinces in the country and has sub-offices in some districts. The committee also recommended a limit of two five-year terms in office for the chief executive officer that should be renewed subject to performance with job position awarded on the basis of merit.

There have also been calls for NSSA to make deliberate efforts towards increasing worker participation in decision making and updating beneficiaries of developments.

Minister Mupfumira said this would be achieved through intensified publicity and rural outreach programmes, which are already ongoing. The committee has urged NSSA to build its own referral hospitals and clinics around the country in consultation with beneficiaries.

“The NSSA board will discuss the issue of building hospitals countrywide. At the moment, NSSA has invested in Ekusileni Medical Centre in Bulawayo and Chitungwiza South Medical Centre. The priority at the moment is to construct a hospital and lease it out to professionals in the health field,” said Minister Mupfumira.

She challenged NSSA to be thorough and conscious when venturing into projects using public resources.

The minister said the NSSA investment policy should address issues relating to infrastructural development, agricultural production, processing and marketing, small and medium enterprises and housing, especially low income earners. The authority is already rolling out housing projects in Rusike in Marondera and Masvingo while efforts are underway to run a similar project in Bulawayo and other parts of the country. NSSA is also in the process of registering a building society, which will concentrate on low-cost housing starting next month.

The committee has recommended that scheme members should be allowed to use their membership as collateral in order to access loans.