GIPF board approves 5% increase in benefits
The Government Institutions Pension Fund (GIPF) announced a 5% income boost for active annuitants' pensions, effective 1 April 2024. This increase also applies to members on disability. Additionally, pensions and disability income existing for over a year will see a 5% increment, while those under a year will receive a pro-rata increase based on their duration.The decision was made by the Board of Trustees after thorough actuarial scrutiny, considering factors like inflation, cost of living, reasonable benefit expectations, affordability, average annual returns, current and future liabilities, and fund assets to ensure sufficient coverage.
To mitigate investment volatility, the fund employs a 3-year averaging method using December year-end returns as a reference. Annual pension increments aim to balance the volatile investment environment, and global geopolitical factors, and manage expectations while ensuring active annuitants, numbering 51 484 as of 19 February 2024, cope reasonably with inflation.
Martin Inkumbi, GIPF CEO and Principal Officer emphasised the importance of pension increases in maintaining purchasing power and aims to align with the Namibian Consumer Price Index (NCPI) within affordability limits.
Furthermore, a 5% increase in monthly disability income was announced after a thorough actuarial review, considering the seven-year interval since the last increment. This move reflects the fund's commitment to enhancing financial security for all members, especially those with disabilities, to shield them from purchasing power fluctuations.