GIPF increases pension benefit by seven per cent
04 Apr 2017 18:00pm
WINDHOEK, 04 APR (NAMPA) The Government Institutions Pension Fund (GIPF) has increased pension benefits by seven per cent effective 01 April.
A media statement issued on Tuesday by GIPFs Acting Marketing and Stakeholder Engagement General Manager, Daylight Ekandjo said the decision was based on the performance of the fund over the last financial year.
Amongst other factors were historical pension increases and the Consumer Price Index (CPI), which is used as baseline to determine the shift in the prices of basic commodities.
Ekandjo explained that the funds board decided on the seven per cent increase, as it is suitable and affordable for the fund.
She said the fund currently has about 35 194 recipients and pays out nearly N.dollars 3 billion annually. Of this amount, more than N.dollars 1.2 billion is paid out to pensioners.
The seven per cent pension increment is well within the funds affordability margin and will not have adverse financial implications for the institution, said Ekandjo.
She noted that despite the market volatility being experienced globally, the fund remains fully funded with an over 108 per cent ratio of assets to liabilities with an asset value of N.dollars 98 billion.
GIPF remains in a sound financial position to afford such a benefit for its pensioners, said Ekandjo.
She further emphasised that the increment is in line with the funds strategy to protect pensioners income from the erosion of the purchasing power of their income.