GIPF increases disability income benefits
The Government Institutions Pension Fund (GIPF) has approved a 10% increase in disability income benefits. This increase is backdated to 1 April 2011 and will be implemented by February next year. GIPF made this announcement at a press conference held on Thursday, this week.
“In terms of the GIPF rules, disability income earners remain contributing members to the fund and they are entitled to receive annual increases. This increase, therefore, is awarded in correspondence to the average salary increase given to civil servants following a salary increment agreement between Namibia Public Workers’ Union (NAPWU) and government,” said Elvis Nashilongo, GIPF’s manager of corporate communications.
He added that the Actuarial Fund valuation report reveals that GIPF has a funding level of 105.9% as at 31 March 2009.
“The total disability Income Liability amounts to N$173 540 million, taking up roughly less than 1% of the total liabilities of the fund. The trustees are therefore of the view that such cost is affordable,” Nashilongo said.
He further said, the trustees will however continue to monitor the market volatility especially in view of the current turbulences caused by the sovereign debt crises in Europe and the United States.
“The fund would brace itself for moderate returns and this calls for good management of stakeholder’s expectations,” he said.