Compensation to pensioners increases by 72 percent

Money paid to pensioners by the Social Security Fund of Rwanda (SSFR) increased by 72 percent by this year as compared to what was paid in same period last year. According to statistics, the public pension body paid Rwf3.1 billion in the first six month of this year as compensation compared to Rwf1.8 billion paid in the same period of 2008. “A total of 31,193 pensioners were compensated with Rwf3.1 billion as pension and occupational risks,” the first semester report reads. In a breakdown, Rwf3 billion was paid to 29,404 social security members as pension while Rwf103 million was payment of damages owing to occupation risks where 1,789 members benefited. According to the report, SSFR paid a tune of Rwf1.6 billion in benefits to cover pension and occupational hazards during the second quarter compared to Rwf1.5 billion that was paid in the first three months of this year. However, the first quarter compensation represented a 66.6 percent increase compared to other reporting periods, which was attributed to the computerisation of declarations that were missing in the database. The report also indicated that the number of new employers of the pension body has increased. The pension body registered 1,710 new employers under mandatory and 31 in voluntary, registering 17,100 employees as of June. Well as in the same period of 2008, only 1,037 new employers with 17,100 employees were registered. Despite the increase in members, statistics shows that there is a 6 percent decline in the employers’ compliance. Out of 10,048 active employers, only 6,342 members complied compared to the 5,180 of the 7,547 active employers registered last year in the first semester. Social security benefits constitute 8 percent of the employee’s total salary. Depending on the company’s capital intensity, the employer contributes 5 percent while the employee is deducted 3 percent from his salary. The pension body has introduced measures to narrow down this gap and extend coverage to informal and rural sectors. Registration in the informal sector employers is voluntarily.Meanwhile, the fund is considering measures against employers who fail to remit their workers’ social benefits. Penalties include a fine of up to 36 percent of the arrears or size of the company property. The fine accumulates up to 36 percent depending on the period of default with a monthly interest rate of the total amount due is 3 percent. Ends

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Compensation to pensioners increases by 72 percent