Nine new pension funds registered
NINE new pension funds were registered during the first-half of the year to June 30, according to the Insurance and Pensions Commission (Ipec).
In a statement accompanying the commission’s pensions report for six months ended June 30, Ipec said there were 967 registered occupational pension funds compared to 970 funds as of June 30 last year.
The difference was attributed to eight dissolutions that were finalised during the year. Further, Ipec said there were four transfers, one merger, and nine new funds, which were registered during the period under review.
“During the first half of the year, ending on 30 June 2024, nine pension funds were registered,” said the regulator in the report.
Insurance and Pensions Commission (IPEC)
“These include Lupane Local Board, Gutu RDC, Chipper, Nkayi RDC, Econet Life drawdown, Bubi RDC, Contact Family Counselling Centre Provident Fund, Donhodzo Micro-Pension Fund, and Mashonaland Tobacco Company Pension Fund.
“Fund administrators and pension scheme sponsors must ensure that funds are fully registered before starting operations and that they are subsequently reported on, regardless of their status and position.”
The commission said of the 967 funds, 471 were active, accounting for 48,7 percent of the industry’s funds.
The remaining 496 funds were inactive as they were either paid up or earmarked for dissolution.
“Of the total funds, 37 pension funds were defined benefit schemes, three were hybrid (both defined benefit and defined contribution) and the remainder were defined contribution schemes,” reads the update.
“Only 14 of the 967 registered funds conduct their own in-house fund administration. The remainder comprising 800 insured funds and 153 self-administered funds, outsource the services to fund administrators.
“There were 14 fund administrators registered with Ipec as at 30 June 2024.
“Five of the 14 administrators are independent, while the other nine are registered life assurance companies conducting fund administration business.”
Ipec said the industry’s total assets during the period stood at US$2,18 billion (ZWG29,82 billion) as at June 30 this year, an increase of 37,11 percent from US$1,59 billion during the same time last year.
The commission said contribution arrears were US$53,88 million (ZWG738,39 million), constituting 2,47 percent of the industry’s assets.
“This was an increase of 133,75 percent from US$23,05 million in the prior year wherein contribution arrears constituted 1,45 percent of total industry assets,” said the commission.
“The increase, though affected by exchange rate distortions, is also an indicator of a growing challenge of non-remittance of contributions by fund sponsors as they fall due.
Insert: Ipec public relations manager Mr Lloyd Gumbo
“The industry is being reminded that the commission can garnish the bank accounts of the defaulting sponsoring employers.”
According to Ipec, the pension industry assets were concentrated in investment properties and quoted equities, which constituted a combined position of 69 percent of the industry’s total assets portfolio.
Investment property amounted to US$992,98 million (ZWG13,61billion), being 46 percent of total assets as at June 30 compared to US$828,52 million, which was 52 percent of total assets in the comparative period.
Meanwhile, the commission issued three circulars for the pensions industry in the second quarter of this year.
Two circulars were targeted at guiding the industry on the conversion of insurance and pension assets and liabilities from ZWL to ZWG and the other one was for information regarding anti-money laundering and Countering of Terrorist Financing (AML/CFT training). —chronicle
