Niël Terblanché
The Government Institutions Pension Fund (GIPF) has approved a 4% increase in pension benefits, effective 1 April 2025.
This adjustment applies to all GIPF pensioners, qualifying annuitants, as well as spousal and child beneficiaries.
The GIPF’s chief executive officer, Martin Inkumbi, announced the adjustment in a statement issued on Tuesday.
He said that pensions in payment or deferment for less than a year as of 31 March 2025 will receive the increase on a pro-rata basis.
“The Board of Trustees took this informed decision following the recommendation from the Fund’s Actuary,” Inkumbi said.
He explained that the advice was grounded in the sustainability of the Fund, recent inflation trends, and the expectations of members and pensioners.
He also indicated that the GIPF’s funding level remains above 100%, meaning the Fund’s assets are sufficient to meet its liabilities.
Inkumbi stated that the Fund intends to preserve the purchasing power of pension payments over time, with adjustments linked to the National Consumer Price Index (NCPI), subject to affordability.
“Affordability for the GIPF is defined as the difference between the net return earned on investments and the net interest applied in discounting pension liabilities,” he said.
He added that this rate currently stands at around 3.73% per annum.
According to Inkumbi, the Fund has adopted a practice of awarding pension increases on 1 April annually, aiming for adjustments within the range of 75% to 100% of the NCPI.
He said that the decision for the upcoming 4% increase followed a detailed actuarial analysis that considered the average annual return over the past five years, along with current and projected liabilities and assets.
Inkumbi said that, due to fluctuations in annual returns, the Fund uses a three-year averaging method based on returns recorded at each December year-end.
As of December 2024, the GIPF had 55 507 active annuitants, with an average monthly payout of N$330.4 million, which comes to approximately N$3.96 billion per year.
He reiterated the Fund’s commitment to its members.
“The GIPF will continue to prioritise the needs and aspirations of its members in decision-making and service delivery, while ensuring it meets its obligations for long-term sustainability,” he said.
