15 Jul 2018 13:20pm
WINDHOEK, 15 JUL (NAMPA) The Social Security Commission (SSC)s investment portfolio grew by 8,93 per cent in the financial year that ended 28 February 2018, Chairperson of the Board of Directors, Dr David Uirab, said.
Speaking during the commissions stakeholder gala dinner held on Thursday, Uirab said the SSCs investment portfolio grew from N.dollars 3.2 billion in the financial year ended 28 February 2017 to N.dollars 3.5 billion at the end of February 2018.
He attributed the growth to contributions and returns on investments.
The SCC derives its revenue from compulsory membership contributions.
The SCC funds have been invested offshore as of December last year. This has been done in order to diversify the portfolio risk, enhance returns and maintain liquidity needs, Uirab said.
This strategy was implemented to ensure effective investment risk management through a balanced and diversified investment approach to ensure long-term financial sustainability.
The SSCs maternity leave, sick leave and death benefits (MSD) contribution income for the financial year ended February 2018 stood at N.dollars 492.5 million compared to N.dollars 517.7 million at the end of February 2017 - a drop of about five per cent.
Assessment revenue for the Employees Compensation Fund (ECF) also dropped by two per cent - from N.dollars 131 million to N.dollars 128.5 million.
These reductions in income received by the SCC is attributed to the economic downturn that the entire country is facing at the moment, Uirab said.
A total of 38 000 claims under the MSD benefit fund were processed and N.dollars 280 million was paid out to members.
A total of 2 182 claims were received for the ECF for medical services totalling N.dollars 11.3 million.
The chairperson said medical claims were slightly higher than the previous financial year, where only 1 900 claims were received.
N.dollars 4.3 million was paid out for 1 402 compensation claims processed last year.
Furthermore, the SSC administered 20 monthly pensions related to fatal accidents and permanent disabilities, for which N.dollars 5.8 million was paid out.
Uirab also noted that the social protection landscape in Namibia was grossly fragmented, which affects the cost and capacity to deliver social security related services.
The SCC will take a leading role in a dialogue which may lead to the consolidation of the fragmented social security schemes into robust comprehensive and coherent national schemes under the SSC, he stated.