The Government Institutions Pension Fund (GIPF) has announced a 5.46% increase in pension benefits for all GIPF pensioners, effective from 1st April 2023.
According to the fund, the increase comes after a thorough actuarial due diligence conducted by the GIPF Board of Trustees, which considered the Fund’s average annual return over the last five years, current and future liabilities, and assets of the Fund.
“A pension increase serves to cushion pensioners from unexpected changes in their purchasing power. Hence, the incessant ability to increase members’ benefits annually is driven by the Fund’s collective commitment to guard and grow members’ financial security. The Fund aims to match the Namibian Consumer Price Index (NCPI) to ensure that pensions in payment retain their purchasing power over time, subject to affordability,” said GIPF CEO and Principal Officer, David Nuyoma.
This comes as the GIPF has adopted a 3-year averaging method, with the returns of each December year-end serving as a reference point, given the volatility of returns from year to year.
“In awarding pension increments, the Fund constantly strikes a delicate balance by considering the volatile investment returns, global geo-political circumstances, the need to manage expectations regarding pension increases, and ensuring that our pensioners live within inflation parameters,” said Nuyoma.
GIPF is a statutory pension fund which provides guaranteed pension and related benefits to 98,623 civil servants, and employees of participating employers in Namibia.
