Social Security - National Social Security Authority pensions and compensation fund collections increased by 9 percent to US$181,4 million last year. The increase in collections was attributed to the insurable earnings ceiling of US$200 and a rate reduction from 8 to 6 percent that was effected in May. General manager Mr James Matiza in the authority's audited financial results for the year ended December 2010 said total claims expenditure for the year was US$20,8 million, showing a 48 percent increase compared to the previous year.

In Zimbabwe social protection is offered under two schemes, the National Pension and the Workers' Compensation schemes.

Workers' Compensation claims expenditure was US$6,5 million as more workers claim their benefits due to the stability of the multi-currency system.

During the Zimbabwe dollar era beneficiaries were not interested in claiming as the payouts were eroded by inflation.

Despite collecting US$181,4 million from workers, beneficiaries have continued to receive only US$40 a month.

Beneficiaries have called for a review of payouts but it was blocked after the re-introduction of insurable earnings ceiling of US$200 in May last year.

As at December 2011, NSSA net assets had grown 46 percent to US$456,7 million against US$312 million in the previous year.

During the period under review, the authority recorded a total income of US$200 million as interest rates obtained on investments averaged 22 percent in the first quarter of the year before declining to an average of 17 percent in the second quarter.

"Expectations were that rates would decline further to an average of 1 percent during the second half of the year as liquidity was expected to improve particularly from the sale of diamonds," said Mr Matiza.

"However, not much was gained from the diamond sales and interest rates began firming to the end of the year averaging 13 percent."

During the period, NSSA invested 30 percent in equity investments, 20 percent in the money market, property investments 25 percent, prescribed assets 10 percent, housing 10 percent and empowerment fund just 5 percent.

The authority says under the empowerment fund, it extended US$1 million under concessionary terms to the Small Enterprises Development Corporation for the support of small and medium enterprises.

NSSA has also set up a US$5 million empowerment fund to support business ventures of retrenchees who were former contributors to NSSA schemes.

The facility, which will operate through FBC Bank and Metropolitan Bank, is for amounts between US$500 and US$5 000, payable over a period of six to 12 months attracting 10 percent interest.

Bright Madera

The Herald/23/09/2011