State-run pensions body, the National Social Security Authority (NSSA) has increased its minimum pension for the Pension and Other Benefits (POBS) to $1000, while the Accident Prevention and Workers’ Compensation scheme minimum pensions have also been increased to $1000 with effect from November 1, 2020.

The latest upward review comes after a recent ad-hoc acturial valuation.

Said NSSA acting general manager Mr Manase:

“The ad-hoc actuarial valuation recommended a 200 percent increase across the board, subject to a minimum retirement pension of $1000.

“This effectively means that the minimum pension for the Pension and Other Benefits Scheme increased five-fold from the $200 that was set in October 2019, while that of the Accident Prevention and Workers Compensation scheme has been increased from $240 to $1000.”

Additionally, NSSA also increased the funeral grant for both schemes from $2000 to $5000.

SInce April 2020 NSSA has been paying monthly discretionary bonuses while it awaited for the outcomes of the actuarial valuation.

The discretionary bonuses that were paid were staggered as follows: April to July (100 percent of monthly pension), August (150 percent of monthly pension), and September to October (200 percent of monthly pension).

The Authority has said the next acturial valuation is set for the upcoming year.

“Going forward, NSSA will be implementing a self-adjusting mechanism on insurable earnings, which is expected to improve the contributions income thereby allowing the Authority to review benefits pay-outs in line with changes in the economy,” said Mr Manase.