Ghost of 2008-2009 haunts Pensions industry as viability and relevance is questioned
Staff Reporter
NYANGA: Zimbabwe Association of Pension Funds (ZAPF) chairperson Reginald Chihota has said the role of Trustees and Chairpersons of pension funds has now become more prevalent in the midst of emerging trends in the pensions industry where people are now asking the viability and relevance of industry.
He was speaking at the opening of the ongoing ZAPF principal officers and chairpersons conventions ongoing in Nyanga yesterday.
This comes at a time the industry is buffeted by erosion of pension investment values, unresolved loss of value issue and tumbling coverage in the wake of excessive expenses and high contribution arrears topping $600 million.
This also comes when the sector is experiencing weak corporate governance and hamstrung by outdated legislation.
But Chihota said what was is confronting the industry is in one way or the other connected to what has been happening in the legislative space where the country has witnessed statutory instruments are coming “fast and furious”.
“…and the ghost of 2008 to 2009 is already haunting us .Legitimate questions are being asked about the viability and continued relevance of the industry.
Notwithstanding the daunting challenges, concerted efforts are being made at industry to ensure preservation of value and growth of assets. In the midst of all these emerging trends, principal officers and chairperson’s role assume an even more critical role and pivotal role,’ he said.
Chihota added chairpersons still have to provide leadership and direction to the pension board in a VUCA (Volatility, Uncertainty, Complexity and Ambiguity) context together with principal officers and CEOs for the funds who are responsible for the day to day management and running of their funds in the chaotic environment.
The convention being held under the theme ’Emerging trends in the pension industry” is expected to see these executives who are tasked with the implementation of policies which are now often unpalatable deliberate and come up with solutions and adjust to the emerging trends in the pensions industry.
The unrelenting shocks rocking the industry and the economy have resulted in increased product termination of policies as contributions, premiums and benefits can no longer keep pace with the rate of inflation, which is growing at astronomical rates that would not allow investment returns to keep pace
