ZCTU slams NSSA’s token payout increments, says pensioners still won’t meet basic needs

THE Zimbabwe Congress of Trade Unions (ZCTU) has slammed the National Social Security Authority’s (NSSA) recent payout increments arguing they still do not match the decades long contributions invested during employment years.

This week, the government and NSSA approved an upward review of minimum pension benefits and announced a minimum monthly retirement pension increment of 28.57%, moving from US$70 to US$90 per month. This scheme covers approximately 262,000 beneficiaries.

The minimum monthly pension for workplace injuries and occupational disabilities increased by 30%, moving from US$100 to US$130 per month. This scheme covers roughly 8,000 beneficiaries.

ln a statement Friday, ZCTU acting secretary-general Nhamo Bepete said while the increments are acknowledged as a step in the right direction, the amounts on offer remain very inadequate to meet daily needs.

“At a time when the cost of living continues to place significant pressure on households, a minimum monthly pension of US$90 cannot adequately cover essential requirements such as food, accommodation, healthcare, transport and other basic necessities.

“Pensioners, many of whom have no alternative sources of income, deserve social security benefits that guarantee them dignity and reasonable financial security after years of contributing to the country’s economy,” he said.

The labour group therefore called for a fundamental shift in the determination of NSSA pension benefits arguing that pension adjustments should not merely be based on actuarial considerations and the financial position of the fund but must also take into account the prevailing cost of living and the actual needs of beneficiaries.

Bepete also questioned NSSA’s investment strategy, raising concerns that the portfolio has not been sufficiently structured to translate the Authority’s investments into tangible and meaningful benefits for contributors and pensioners.

“We therefore call for greater transparency and accountability in the management of NSSA investments, including clear disclosure of how investment decisions contribute to the welfare of contributors and beneficiaries,” he said.

He implored NSSA to ensure that its investment portfolio is deliberately aligned with the interests of workers and pensioners.

“The ZCTU reiterates that social security is a fundamental right and not a privilege.Workers contribute to NSSA throughout their productive years with the legitimate expectation that their contributions will guarantee them protection and dignity when they retire or become incapacitated due to occupational injuries,” added Bepete.

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