NSSA submits informal sector pension scheme

Published: 04 September 2017

THE National Social Security Authority says it has tabled the proposed social security scheme for the informal sector with an inter-ministerial task-force.

In an interview with The Herald Business on progress towards introducing the scheme, NSSA General Manager Elizabeth Chitiga said, "The NSSA executive has tabled the scheme with an inter-ministerial taskforce to spearhead the final design.

"The completion of the scheme design will give birth to implementation of strategies and roadmap to the launch," said Ms Chitiga.

NSSA has also engaged the services of actuaries to come up with a conducive model and final touches are being made to the final design of the scheme.

"A lot of work has already been done, including surveys and actuarial modelling. We have engaged actuaries and are currently deliberating with them on the final design of the informal sector scheme," she said.

The scheme will have benefits that include retirement pension and more products would be introduced come in response to demand from the sector.

"The scheme will initially offer basic products that include retirement pension, survivor's pension, injury at work compensation and funeral grant, followed by gradual introduction of more products in response to demand from the market," said Ms Chitiga.

NSSA intends to roll out the scheme focusing on previously neglected sectors, and the programme is expected to be rolled out before the end of 2017.

"NSSA is adopting a sectoral and phased approach in rolling out the programme. If all goes according to plan, we expect to launch the scheme by the end of the fourth quarter," Ms Chitiga said.

According to a survey by NSSA, 72 percent of people in the informal sector do not contribute to any social security scheme.
- bh24

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