Unclaimed pension benefits up 168 percent

THE number of unclaimed pension benefits increased by 168 percent to 154 957 as at September 30, 2020 largely blamed on low benefits being paid out by the country’s pension funds.

In a report for the third quarter ended September 30, 2020, the Insurance and Pensions Commission (Ipec), indicated that in the comparable period in 2019, unclaimed benefits stood at 57 815.

“Noting that very low benefits have also been a contributing factor to the unclaimed benefits, the commission is insisting on allocation of revaluation gains on the unclaimed benefits in line with requirements of the guidance paper on currency reforms,” said Zimbabwe’s insurance and pensions regulator.

Ipec has also launched a search engine on its website onto which information on unclaimed benefits has been uploaded in an effort to inform members of their benefits.

In this context, the commission urged members of the public to make use of the search engine to trace unclaimed benefits for their loved ones.

Given the high numbers of people not claiming their benefits, Ipec also urged pension funds to be proactive in empowering their members with knowledge on how to claim their benefits through pre-retirement education programmes.

Meanwhile, during the period under review, the industry’s total membership, excluding beneficiaries, increased by 11,2 percent to 888 690 from 798 828 as at September 30, 2019.

The increase was largely attributable to new entrants mainly from life companies administered funds.

“Furthermore, the increase in membership was also as a result of inclusion of members with unclaimed benefits that were previously excluded by the Clothing Industry Pension Fund.”

As at September 30, 2020 the number of active members had grown to 326 956 from 314 524 in the corresponding quarter the previous year.

Ipec said the increase was as a result of new members who joined during the period under review.

The industry’s asset base increased in nominal terms from $9,45 billion as at 30 September 2019 to $108,05 billion in the third quarter last year.

Ipec said the asset base for the sector also grew by 62,70 percent from $66,41 billion reported as at June 30 2020.

“In real terms, the asset base grew by 14,59 percent from US$1,16 billion as at June 30, 2020 to US$1,33 billion as at September 30, 2020,” said the commission.

“The increase in the asset base was mainly driven by an increase in the values of investment properties and quoted equities which accounted for 77,99 percent of the industry’s assets,” said Ipec. —chronice.cl.zw