NSSA revenue in marginal decline in 2017, but profit in massive jump
By Insurance24
HARARE, The National Social Security Authority (NSSA) revenue for 2017 declined a marginal one percent to $349 mln largeley as a result of declining contributions and premiums as registered employers number declined due to company closures.
Despite that, NSSA, profit for the year significantly went up to $149 million compared to $105.9 million in 2016. According to acting managing director Emmerson Mungwariri said this was largely driven by increased investment income and less write downs which more than offset the decline in contributions.
He said registered employer numbers reduced to 25 800 compared to 28 162 in 2016 due to company closures.
Despite declining revenue performance from the traditional core contributors, investment income rose 133% to $54,6 million from $23.5 million in 2016. This according to Mungwariri was driven by increased investments in money market and treasury bills. “These partly offset the decline in interest rates, capital uplifts on loans and advances as well as bad debt recoveries,” noted the acting MD.
For the period under review, claims and benefits rose 21% to $172.3 million from $142.7 million in 2016 due to increase in number of claims.
“The economic hardships being faced by most pensioners have resulted in the increase in the number of claims as more pensioners who previously did not bother to claim are making submissions resulting in a surge in arrear pension payments,” said Mungwariri.
He said an average 203,333 beneficiaries received pensions and other benefits in 2017 compared to 187,666 in 2016.
Nssa last year increased the monthly minimum retirement pension pay-outs from $60 to $80 with effect from October 1, with the authority saying the move was in line with the board’s desire for a livable pension for all pensioners.
This resulted in the monthly pension’s bill increasing by an average of $1.6 million. In addition to that, the Authority paid a full month bonus in December.
