Staff Reporter
THE Government Institutions Pension Fund (GIPF) has approved a 5% increase in monthly pension benefits for all pensioners and qualifying beneficiaries, effective 01 April 2026, citing the fund’s strong financial position and the need to cushion members against rising living costs.
The increase will apply to all GIPF pensioners, as well as qualifying spousal and child beneficiaries, while pensions that have been in payment or deferment for less than a year as of 31 March 2025 will receive a pro-rata adjustment.
GIPF Chief Executive Officer and Principal Officer, Martin Inkumbi, said the decision was approved by the Board of Trustees on 26 March 2026 following an actuarial recommendation that took into account the fund’s sustainability and local inflation, currently estimated at 4%.
He noted that the 5% increase is aimed at preserving the purchasing power of pensioners and providing financial relief amid rising costs of essentials such as food, fuel, housing and healthcare.
“The GIPF took this decision as the Fund is in a favourable financial position to adequately cover its liabilities,” Inkumbi said.
He added that the fund remains committed to supporting pensioners and beneficiaries during retirement, ensuring financial stability at a stage when they no longer earn a regular income.
Inkumbi further said that the GIPF has consistently matched or exceeded inflation-based increases in line with the National Consumer Price Index (NCPI), reflecting prudent investment management and strong governance practices.
The fund’s policy is to implement pension increases annually on 01 April, typically ranging between 75% and 100% of the NCPI, depending on affordability. The latest adjustment follows a detailed actuarial assessment that considered the fund’s returns, assets, and long-term liabilities, using a three-year averaging method to account for market volatility.
As of December 2025, the GIPF had 57,314 annuitants receiving pensions, with total monthly payouts averaging N$337 million, amounting to over N$4 billion annually.
The fund reaffirmed its commitment to reducing members’ financial vulnerability and easing reliance on government and social support systems in the face of rising and uncertain living costs.
Photo: NBC Digital News
