Organisations in $179 billion pension arrears
LOCAL Authorities, energy-focused firms and other entities are in a massive $179 billion pension arrears, with the Insurance and Pensions Commission (Ipec) urging board members of affected entities to put in measures to ensure defaulting employers remit outstanding contributions.
Ipec is a statutory body that was created through an Act of Parliament – the Insurance and Pensions Commission Act [Chapter 24:21], to regulate the insurance and pensions industry in Zimbabwe.
The Commission’s principal function is to protect the interests, rights and benefits of insurance and pension consumers and to ensure that there is general stability of the insurance and pensions industry.
The regulatory body released a list of the top 50 sponsoring entities that are in various arrears contributions by value as of December 31, 2023.
“The purpose of this notice is to inform members belonging to these funds, as part of the Commission’s disclosures,” said Ipec in a notice.
Ipec said employers that deduct pension contributions are required in terms of section 16 (3) of the Pensions and Provident Funds Act (Chapter 24:32), to pay contributions to the pension fund not later than 14 days after the end of the month in which the contribution is payable.
“Ipec calls upon members of boards of the affected pension funds to put measures in place, to ensure the defaulting employers remit outstanding contributions, for the benefit of their pension scheme members.
“In addition, labour organisations are urged to engage the employers who are not remitting pension contributions to protect members against old age poverty,” said Ipec.
According to Ipec, firms whose contributions are administered by the Zimbabwe Electricity Industry Pension Fund (ZEIPF), such as ZETDC are in arrears of $65 billion, ZPC ($26 billion), Zesa Holdings ($10 billion), Zent ($7 billion), Zesa Executive ($6 billion) and REA ($1,2 billion).
Leading the pack, among more than 20 local authorities, mostly rural district councils, is Chitungwiza municipality with $982 million, Binga RDC ($917 million), Beitbridge RDC ($530 million), Bulilima RDC $563 million, Tsholotsho RDC ($452 million), Bubi RDC ($415 million) and Matobo RDC ($414 million).
Other companies in arrears include Zupco ($1,5 billion), Zimchem Refineries Private Pension Fund ($817 million), and Zimplow at $534 million.
Ipec said following gazetting of the new Pensions and Provident Funds Act (Chapter 24:32) into law in September 2022, employers and members of boards are urged to familiarise themselves with the deterrent provisions of the new Act regarding pension contributions.-chronicle.co.zw
