Pensioners above 60 years exempted from bank charges as NSSA/Banks strike deal

Pensioners above 60 years exempt from bank charges as NSSA/Banks strike deal


Harare,  Pensioners above 60 years are now exempted from paying transaction charges under a new dispensation agreed with at least 12 local banks, government controlled pension fund, the National Social Security Authority (NSSA) announced on Wednesday.

NSSA has previously been criticized for turning pensioners into paupers through its meagre payouts while at the same time losing millions in pensioners’ funds through shady deals.

However, this agreement with banks is one way NSSA is trying to improve on pensioners’ welfare, after it increased the minimum monthly pension payout to $80 from $60, with effect from October 1.

NSSA said banks including Barclays, Central African Building Society, CBZ, FBC, MBCA, Metbank and the National Building Society had agreed to waiver charges on transactions made by pensioners above 60.

Other banks also party to the agreement include NMB, Stanbic, Standard Chartered, Steward and ZB.

“If you are over 60 years old, you are now exempt from transaction charges at selected banks, this is our way of thanking you for your years of dedicated service to this country,” the authority said.

NSSA has said it will further increase pension payouts after the authority completes cleaning up its payroll through a biometric registration programme, which ends this month.

The new registration is aimed at weeding out ghost pensioners, among other things.

NSSA’s monthly pension payroll is currently over $8 million.

The authority has been directed by government to ensure that it hikes the minimum pension to $150 per month by year end.

NSSA is also working on introducing pension cover for people working in the informal sector, as the fund currently covers only those formally employed.

The authority recorded a jump of over 200 percent in net profit to $116.8 million for the year ended December 2016 compared to the previous year.

It also recorded an increase in income to $485.4 million in 2016 from $445.6 million the previous year.