Africa-Press – Namibia. THE Government Institutions Pension Fund is still in a sound financial position, but did not increase pension benefits enough to counter inflation last year.
This means pensioners had to fork out more money to pay for goods and services last year.
According to the fund’s 2022 integrated annual report, pension benefits increased by 4,62%, short of inflation, which was 5,50% as of April 2022.
Inflation for 2022 closed the year at 6,1%, meaning pensioners, like most consumers, had their pockets strained.
The report was released this week and also shows that the fund has a healthy balance sheet, boasting an asset value of N$147 billion and has achieved a 10,8% investment performance.
There are 44 participating employers that contribute to the fund and constitute over 94% of the active members.
The employees of these government-related institutions contributed to the fund N$4,5 billion and if spread over the 98 000 number, it means each member contributed an average of N$45 900.
The fund, however, paid beneficiaries N$1 billion more at N$5,5 billion, with the difference sourced from the fund’s income earned from the several investments it holds.
This has posed a liquidity risk, which the fund says it will closely monitor.
About N$13 billion investment income was earned, allowing the fund to report a surplus of N$16 billion for the year ended March 2022.
The N$147 billion assets are managed by an in-house investment team (N$30 billion) and external investment managers (N$105 billion).
For the 2022 financial year, GIPF invested N$949 million in the Namibian economy and over N$5,3 billion in the last five years.
Much of the cash is invested in Khomas (N$1,7 billion) and Otjozondjupa (N$1,3 billion).
GIPF remains a significant investor in Namibian government bonds and at the end of the 2022 financial year held 25% (N$23,6 billion) of the total bonds cutting across varying maturity days.
The full integrated report of the fund is available on the fund’s website.
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