GIPF increases pension benefit by 5,5 per cent
13 Apr 2018 14:20pm
WINDHOEK, 13 APR (NAMPA) The Government Institutions Pension Fund (GIPF)s pension benefit has increased by 5,5 per cent for the year 2018, a 1,5 per cent decrease from the 7 per cent average increase recorded over the previous five years.
According to a media statement issued on Friday by the fund, the increase was approved by the Board of Trustees and is effective from 01 April 2018.
It said factors which influence the annual pension increase include its performance over the financial year, historical pension increases and the Consumer Price Index (CPI), which is used as a baseline to determine the shift in the prices of basic commodities.
With the year-on-year percentage inflation rate standing at 3,5 per cent the Board carefully considered the above factors and found the 5,5 per cent pension increase suitable and affordable for the fund, although over the years the Board has always awarded increases slightly above CPI, the statement said.
Additionally, the funds financial year end of March 2017 indicated that the number of active annuitants (pensioners and other beneficiaries) stood at 35 081.
This means the 5,5 per cent increase will result in the fund paying out an estimated N.dollars 115.8 million monthly and approximately N. dollars 1.4 billion to annuitants annually.
GIPF has assured its stakeholders that it is in a sound financial position to afford such a benefit for its pensioners as it is also in line with its strategy to protect pensioners income from the erosion of the purchasing power of their income.