The Government Institution Pension Fund (GIPF) announced an increase in its pension payouts this week in the capital. According to GIPF manager of corporate communications, Elvis Nashilongo, the board has approved an increase of 7.5% to pension payouts effective from the start of April.

Total pension liability for the GIPF amounts to N$5.6 billion and Nashilongo said the fund pays out over a billion dollars annually in pension-related benefits. GIPF supports about 20 000 pensioners, orphaned children and other Namibians who are entitled to receive pension pay-outs, such as the wives of deceased GIPF members. In total 40 000 Namibians enjoy GIPF benefits including those suffering from disabilities. Although the billion dollars paid to the 20 000 GIPF pensioners would average N$50 000 a year each, government pensions are worked out at two-thirds of salary on retirement so each would get a different amount; some less, some more.
Nashilongo noted that the consumer price index has shown a steady rate of inflation below 6% month-on-month and that GIPF has maintained its “strategy of targeting inflation-linked pension increases in order to protect pension income from the ravages of inflation,” he said.
Nashilongo said that the fund’s investments have delivered impressive positive returns averaging 11.8% annually over the last 5 years which means GIPF can afford the recently announced increases. Currently the fund has reserves hovering around N$50 billion, although these figures are unaudited, he said. The last audited figures from March 2011 had it at N$44 billion.