The Government Institutions Pension Fund (GIPF) has announced a 5.46 per cent increase in pension benefits, up from a 4.62 per cent increase in 2022/2023.

The pension benefit increase became effective for all GIPF pensioners on 01 April 2023.

In a media statement issued on Wednesday, GIPF stated that the rate was determined after a thorough actuarial due diligence that considered the fund’s average annual return over the last five years, current and future liabilities, and assets.

Given the volatility of returns from year to year, the civil servants’ pension fund has implemented a three-year averaging method, with the returns of each December year-end serving as a reference point.

According to GIPF, as a result, despite the current volatile economic outlook which has resulted in rising fuel and commodity prices, GIPF continues to provide members with guaranteed benefits.

“The fund constantly strikes a delicate balance in awarding pension increments by taking volatile investment returns, global geopolitical circumstances, the need to manage expectations regarding pension increases, and ensuring that our pensioners live reasonably within inflation parameters,” it said.

GIPF aims to match the Namibia Consumer Price Index to ensure that pensions in payment retain their purchasing power over time, subject to affordability, it added.

Source: NAMPA