NSSA crippled by gvt's non remittance of civil servants' pension contributions, owed $180m
A report by the parliamentary portfolio committee on Public Service Labour and Social Welfare revealed that the government has not been remitting the civil servants’ pension contributions to NSSA for the past three years. This is affecting the operations of NSSA which is now owed $180 million by the government.
If not corrected this situation could lead to the collapse of NSSA, as it is paying out money without more money coming in. In the 2017 National Budget, NSSA was allocated only $34, 8 million, an amount which is insufficient to pay off all the arrears.
Excerpts from the report read:
Government has been unable to remit NSSA Employer Contributions with arrears now approaching $180 million. The situation spells doom for NSSA since it is paying government Pensioners, whilst contributions are not coming in
…it is critical for government to avail sufficient resources to NSSA to avert its possible collapse in the very near future.
Only $34,800,000 has been set aside for NSSA in the 2017 budget. This amount falls significantly short of what would be required to resolve the arrears problem.
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