The Government Institution Pensioners' Association in Namibia (GIPAN) has rejected the five percent annual pension increase by the Government Institution Pension Fund.

The Chairperson of GIPAN, Raphael Pieters, argued that the increment is 0.46 percent less than the previous financial year.

The five percent increment came into effect last month.

“We are of the opinion that we would have influenced the unfavourable and contentious 5% increment had we had a representative of our own on the board. An increment arrived unilaterally, making us victims of exclusions. Taking the ever-increasing hikes on fuel prices, electricity, and the basic needed commodities on the shelves of retailers, this 5% increment is tantamount to an insult to the pensioners.”

Pieters also bemoaned the lack of engagement between the pensioners' association and GIPF management.

"We would reason that the GIPF should prioritise mutual engagement and collaboration with this body and make it part of their social, ethical, and moral duty to empower and help capacitate this association, given the fact that this body exists on their initiative."

Equally, Pieters demanded representation of pensioners on the GIPF Board to safeguard their interests.

Commenting, GIPF CEO and Principal Martin Inkumbi says the board of trustees decided on the increment after a thorough actuarial due diligence.

He added that various factors, such as the inflation rate, cost of living, reasonable benefit exceptions for members, and affordability, were also considered.

Inkumbi noted that the pension increase serves as a cushion for the pensioners from unexpected changes in their purchasing power and added that the board of trustees remains committed to ensuring the long-term sustainability of the fund.

Inkumbi revealed that the current . active annuitants of the Fund as of February 19 stood at N$54,484.