NSSA payouts up 51pc to $84m

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THE country’s social security agency paid out $83,5 million to pensioners last year, up 51 percent from the 2012 figures and driven by adjustments in contributions, an official said on Tuesday.
National Social Security Authority (NSSA) general manager James Matiza told a parliamentary portfolio committee on public service, labour and social welfare that the fund had managed to achieve above-inflation yields on its investments despite the general underperformance of the economy.
“In 2013, effective August 1, we moved pensioners from a minimum of $40 to $60 and we ended up paying $83,5 million that year. That was a 51 percent increase on 2012,” Matiza said.
He said the number of beneficiaries rose to 167,926 during the period under review from 152,952 in 2012 as more people reached retirement age.
Last year, NSSA introduced a new combined employee/employer contribution rate of seven percent on insurable earnings of up to $700 per month.
Matiza said NSSA’s investments on the equities market grew by 27 percent to $668 million in 2013 compared to prior year driven by strong returns on the local bourse.
The Zimbabwe Stock Exchange was one of the best performing in the region, with its benchmark industrial index registering a 54 percent growth.
He said nearly 70 percent of NSSA’s investments are in equities and real estate, with the remainder in the money market.
NSSA has a strong interest in most listed companies, including a 40 percent shareholding in FBC Building Society.
Matiza said the authority is charging a maximum interest rate of 10 percent for on-lending to productive sectors of the economy. He said the authority has plans to set up micro-bank on housing to ease the national housing problems.Advertisement