- SSC set to take over N$3 billion Psemas
TIRI MASAWI
President Netumbo Nandi-Ndaitwah has directed the Social Security Commission (SSC) to implement the National Pension Fund, and the National Medical Benefit Fund (NMBF) by 1 April.
The National Pension Fund is a government-backed savings scheme that ensures workers have a steady income after retirement. The NMBF is a public healthcare fund that helps cover medical expenses for workers and their families, making healthcare more accessible and affordable.
Presidential spokesperson Jonas Mbambo yesterday told the Namibia Business Review that President Nandi-Ndaitwah is keen to achieve all promises made to Namibians. He said this includes the NPF and NMBF.
“At a general level, the focus of the Presidency is on making sure that the commitments made to the Namibian people are reflected in real, practical improvements in everyday life,” he said.
The government is also pushing for the SSC to take over the N$3 billion Public Service Medical Aid Scheme (PSEMAS), a state-owned health scheme that covers medical expenses for public servants and their families. The proposed National Medical Benefit Fund would, however, extend similar healthcare coverage to all Namibian workers, not just government employees.
Mbambo said plans are in motion with relevant institutions to work closely to strengthen service delivery, keep implementation on track, and ensure that the timelines set are treated with the seriousness they deserve.
“The emphasis is on moving from policy and planning to outcomes that people can actually see and feel in their communities,” he said.
Mbambo added that, “Ultimately, the guiding principle is that the government’s work must be responsive, coordinated, and focused on impact, so that the benefits of public programmes reach households across the country.”
MINISTER’S WARNING
Minister of Justice and Labour Relations Fillemon Wise Immanuel last week told the Namibia Business Review that he has instructed the SSC to make sure that their budget and strategic plan for this year included the costs of implementing the two Funds.
“It is mandatory for the strategic plan and budget of the implementing agency, SSC, to include these important aspects without fail,” he said.
The NPF is established under Section VII of the Social Security Act of 1994 to provide for pension benefits for retired employees. It aims to cater to employees who are not covered by existing private or employer-sponsored pension funds.
The NMBF is established under Part VI of the Social Security Act of 1994 to provide medical benefits to employees. The fund is meant to provide medical cover to every employee registered with the SSC who does not have another approved medical aid scheme.
The Namibia Business Review understands that Minister Immanuel threatened not to sign off the SSC budget if the company does implement the two Funds.
“I might have sounded like I am threatening their budget allocation, but what I mean is that their strategic plan, and financial planning for the year must include the cost that is needed to implement both the Funds,” he said.
HIGH LEVEL ENGAGEMENT
Wise confirmed that an inter-ministerial meeting consisting of the Minister of Health and Social Services, Ministry of Justice and Labour Relations, and Ministry of Finance met on Thursday to deliberate on the issue to find a solution.
“I can tell that this issue is being handled by capable and favourable hands and we all have consensus that this issue must move forward,” he said.
He added “I can also tell you that this ministerial committee that I chair also deliberated with our respective executive directors, other technocrats and management of the implementing agency to make sure that we progress forward without fail.”
GETTING READY
SSC Executive Officer, Milka Mungunda yesterday told the Namibia Business Review that plans to roll out both the National Pension Fund as well as National Medical Benefit Fund have reached advanced level and will be executed in the first quarter of this year.
“We had a meeting including all stakeholders and the ministries responsible last week. We agreed that we must work towards implementation in the first quarter of this year. We have proposed a budget for the operation of the NPF and progress is also being made on the NMBF. I am, however, not able to reveal to you the figure we asked for from the budget but we expect this to be part of our budget and strategic plan this year,” she said.
According to Mungunda, the NPF and the NMBF faced several problems in the past including failure to comply with the International Labour Organisation (ILO) guidelines. She said this has now been dealt with and the Cabinet has fully endorsed the guidelines that have been put together.
“Ofcourse after deliberations with stakeholders including unions there are certain things they are not happy with and there are some that we are not happy with but the solution is to find the best way forward,” she said.
She said the SSC will soon advertise to attract experts who are needed to set up the two essential social safety nets.
“We will make sure that the consultancy that will be appointed will work closely with SSC employees for a short period of time. They will then hand over the operations to SSC. It is also obvious that we will need to advertise and improve our staff complement to deal with such a set up . We do not have the actuarial expertise that are needed to set up such but we would have to outsource that and have it running,” she said.
She said the NPF will encourage many Namibians to retire with peace of mind devoid of worries about upkeep.
“National Pension Fund is good because it will cover everyone and make life easy for Namibians. The same for the national medical fund,” she said
POLITICAL WILL
The SSC Executive Officer opined that the NPF and the NMBF have been backed by a strong political will. She said the political backing makes it easier to implement the two vital safety nets.
“All these things are strongly part of the plan that was laid by the President last year. I feel for the first time this issue is enjoying strong political backing.This also helps to drive the programme as we know the budgets associated with such will be supported,” she said.
Leader of the Official Opposition in the National Assembly Imms Nashinge said “If what we are hearing is true and that this move is truly about saving money and giving civil servants better service, and cutting out unnecessary costs, then it is a good thing and should be supported,” he said.
Nashinge said public money must work for the people who earn it.
“The only concern I have however, is with the Social Security Commission itself. The SSC has in the past been associated with unaccounted and missing millions, that history left me wondering if the SSC can be trusted to manage a fund of this size with the discipline and transparency it requires,” he said.
Nanshinge said he hopes that this is not just another fight over who controls a lucrative contract among comrades’ but a genuine attempt to fix a system that affects thousands of tax payers.
“As a nation, we have already seen how badly things can go when changes and decisions are rushed, as happened with SME Bank, Agribusdev, NamPost and social grants. We cannot afford a repeat of that,” he said.
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