GIPF ups monthly pension benefit by 5,46%

The Government Institutions Pension Fund (GIPF) has increased pension benefits due to the fund’s beneficiaries by 5,46% from 1 April.

This is expected to benefit more than 46 000 pensioners who are listed as beneficiaries of the fund, and will remain for the financial year ending 31 March 2024.

Last year, pensioners were awarded a 4,62% rise.

The fund says the board of trustees awarded the increase after considering the fund’s average annual return over the last five years, current and future liabilities, and the fund’s assets.

Given the fact that returns are volatile from year to year, the fund has adopted a three-year averaging method, with the returns of each December serving as a reference point.

“Therefore, amid the current volatile economic outlook resulting in increasing fuel and commodity prices, the fund continues to provide guaranteed benefits to members,” the fund’s general manager of stakeholder engagement, Edwin Tjiramba, says.

He says when awarding pension increments, the fund constantly strikes a delicate balance by considering volatile investment returns, global geopolitical circumstances, and the need to manage expectations regarding pension increases and to ensure pensioners live reasonably within inflation parameters.

“A pension increase serves to cushion pensioners against unexpected changes in their purchasing power, therefore the constant ability to increase members’ benefits annually is driven by the fund’s collective commitment to guard and grow members’ financial security,” Tjiramba says.

“The fund aims to match the Namibian consumer price index to ensure that pensions in payment retain their purchasing power over time, subject to affordability,” GIPF chief executive officer David Nuyoma says.

Estimates from the Bank of Namibia are that inflation would average at 6,1% per month this year, and if true, the increase is still below inflation, and pensioners would still need to cough up the difference.

– email: matthew@namibian.com.na