Ipec publishes list of top pension fund arrears contributors

Ipec publishes list of top pension fund arrears contributors

Staff Writer

The Insurance and Pensions Commission (Ipec) has published a list of 50 entities dominating the pension contribution arrears in terms of value.

Topping the list is the National Railways of Zimbabwe tops the list, owing the NRZ Pension Fund $668,96 million, followed by the Harare City Council  owing the Local Authorities Pension Fund (LAPF) $545,47 million.

The Zimbabwe Electricity and Transmission Distribution Company is owing the Zimbabwe Electricity Industry Pension Fund (ZEIPF)  $331,02 million, Hwange Colliery (MIPF) $285,8 million and ZIMRA is owing the Zimra Pension Fund $202 million.

Companies that also makes the list include Innscor Africa owing is pension fund $57 million and Ok Zimbabwe owing the Ok pensions fund $17 million.

Ipec said it was concerned with is development which has seen pension scheme members end up receiving reduced or no benefit when they become due.

“Employers that deduct pension contributions are required in terms of section 2 (a) of Statutory Instrument 61 of 2014 to pay contributions into the pension fund within fourteen days from the end of the calendar month to which they refer.

“Ipec has been receiving complaints from pension scheme members who have received reduced or no benefits owing to failure by their sponsoring employers to pension contributions after deducting the same,” it said in the notice.

The industry regulator noted that as at March 31, 2022, pension contribution arrears stood at about $5,3 billion.

The Commission also called upon the trustees of the affected pension funds in place to ensure the said employers remit outstanding contributions for the benefit of their pension scheme members.

“In addition, labour organizations are urged to engage the employers who are not remitting pension contribution for the purpose of protecting members against members of old age poverty,” it said.

According to the Pensions report for 2021, there were 985 registered occupational pension funds as at December 31, 2021, compared to 967 funds reported as at December 31, with the increase resulting from new registrations and the correction by Old Mutual Life Assurance Company who had stopped reporting funds under dissolution.