Government Institutions Pension Fund (GIPF) Board of Trustees has approved a pension increase of 7.5% for its pensioners affective 1 April 2014.
Speaking at the announcement of the increase, Chief executive officer of GIPF, David Nuyoma said that, “This implies that arrear pension would be backdated to this date. I am also happy to announce that the increase is above the year on year inflation rate of 5.2% recorded at the end of March 2014.”
The cost of providing for the increase is to be carried by the Fund following a thorough assessment of investment performance and the ability of the Fund to afford such an increase. This, Nuyoma revealed, was due to the performance of the Fund over the financial year, historical pension increases and Consumer Price Index (CPI), which is used as a baseline to determine the shift in the prices of basic commodities.
“I wish to however point out that pension increases are not compulsory in the Rules of the Fund, but are rather granted after considering the above factors,” Nuyoma said.
Currently there are over 32000 annuitants that the GIPF provides for, and over N$860000 pension payment was made between April 2013 and March 2014.