GIPF increases pensioner benefits
The Governments Institutions Pension Fund this week announced a pension increase of 7%, despite challenging market conditions, its Chief Executive Officer, David Nuyoma said in light of a Board of Trustees meeting which took place a fortnight ago.
“We would like to announce the pension increase for the 2016 financial year in line with our philosophy of protecting pensioners’ income from the erosion of purchasing power. Although inflation rates have been largely flat around 3% to 3.4% in 2015, there has been a sharp increase in this rate which stood at 6.1% during February 2016. In our view the price of the food basket will continue to worsen and our pensioners expect more difficulties due to the eminent drought and lower agricultural production,” motivated Nuyoma.
He added, “it must be emphasised that the decision to grant pension increases has not been easy this time around. The Board had to deal with this decision against the backdrop of meagre investment returns recorded for the year. The world markets declined during 2015 affecting everyone and the Governments Institutions Pension Fund was not spared but we take solace in the fact that our average return over the past five years has been around 16%. Owing to this remarkable growth of our asset value, the fund managed to grant an annual average pension increase of 7.1% during the past ten years.”
Stated Nuyoma, “we wish to mention that despite global economic hardships, the fund remain s in a sound financial position with asset to liability ratio now standing at 108% according to the recent Actuarial Valuation Report.
Nuyoma added that the Government Institutions Pension Fund was excited about the recently announced Harambee Plan and said that it presented opportunities for the fund to participate in the various pillars announced earlier this week.
“Harambee coincides nicely with the fund. The pillar on infrastructure is exciting. We have always wanted to play a role as the Government Institutions Pension Fund,” he said.