Government owes NSSA $200m in pensions

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GOVERNMENT, through the ministry of Public Service, Labour and Social Welfare, owes $180 million in civil servants pension (s) contribution arrears it has not been remitting for the past three years, a report has revealed.
According to a report by the parliamentary portfolio committee on Public Service Labour and Social Welfare, which was submitted to the speaker of parliament, Jacob Mudenda recently, NSSA had been “crippled” by government’s non-remittance of civil servants’ pension contributions for years now.
“Government has been unable to remit NSSA Employer Contributions with arrears now approaching $180 million. The situation spells doom for NSSA since it is paying government Pensioners, whilst contributions are not coming in,” read part of the report.
“In view of the fact that the NSSA minimum pensions are being reviewed to $100 per month with a further upward review to $150 per month planned for 2017, it is critical for government to avail sufficient resources to NSSA to avert its possible collapse in the very near future,” said the report.
The report said the situation was going worsen this year because of the negative signs of economic recovery.
“Only $34,800,000 has been set aside for NSSA in the 2017 budget. This amount falls significantly short of what would be required to resolve the arrears problem,” the report pointed out.
This failure by government to remit civil servants’ pension contributions has also resulted in other parastatals doing the same, said the same report.
“The Government has been failing to remit its contributions to the PSMAS hence it has fallen into arrears. These arrears are affecting the smooth provision of health services to members who are frequently turned away from health institutions or are required to pay cash upfront for services,” noted the parliamentary report.Advertisement