ZCTU Criticises NSSA Pension Increases, Says Payments Remain Insufficient for Basic Needs

The government and NSSA recently approved increases to minimum pension payments, raising the monthly retirement benefit from US$70 to US$90. The adjustment represents a 28.57 percent increase and is expected to benefit approximately 262,000 pensioners.

Minimum monthly payments for workers receiving compensation for occupational injuries and disabilities have also been increased by 30 percent, from US$100 to US$130. The category covers an estimated 8,000 beneficiaries.

However, ZCTU acting secretary-general Nhamo Bepete said the adjustments, although welcome, would do little to address the financial difficulties facing many pensioners.

In a statement released on Friday, Bepete argued that the new minimum retirement payment of US$90 was insufficient to cover essential expenses such as food, housing, medical care and transportation.

He noted that many retired workers depend almost entirely on their pension payments for survival and therefore require benefits that provide reasonable financial stability and allow them to maintain their dignity after years of employment.

The labour federation is now calling for a review of the way NSSA determines pension benefits. It believes adjustments should consider not only the financial position and actuarial calculations of the pension fund but also prevailing living costs and the actual needs of beneficiaries.

Bepete also raised concerns about the authority's investment strategy, questioning whether its investments were generating sufficient returns that translate into meaningful improvements for contributors and pensioners.

The ZCTU has consequently called for greater openness and accountability in the management of NSSA's investment portfolio.

According to Bepete, the authority should provide clearer information on its investment decisions and demonstrate how those investments contribute to the welfare of workers and pension beneficiaries.

He further urged NSSA to ensure that its investment priorities directly reflect the interests of the people whose contributions support the social security system.

The labour organisation maintained that social security should be treated as a basic right rather than a privilege.

It argued that workers make regular contributions throughout their productive years with the expectation that the system will provide financial protection when they retire or become unable to work because of occupational injuries.

The latest criticism adds to concerns about whether current pension payments are sufficient to support retired workers amid continuing pressure on household budgets.

Source: NewZimbabwe.com