Unpaid non-resident benefits continue to be a challenge: Ipec

Unpaid non-resident benefits continue to be a challenge: Ipec

Staff Writer

The Insurance and Pensions Commission (Ipec) says the unpaid benefits to non-resident pensioners cumulatively stood at ZWl$3,2 billion (US$600000) as at Q3 2023.

The amount owed to about 3055 non-resident pensioners increased by 1098% in nominal terms during the period with the number on pensioners having gone up to 3115.

Over the years issues to do with remittance of foreign currency had been responsible for many pensioners failing to settle their dues.

In a Q3 2023 update, Ipec said Old Mutual Life Assurance Company and Mining Industry Pension Fund had the greatest number of non-resident pensioners with 1079 and 1013 non-residents pensioners, respectively.

“Old Mutual was the only administrator who indicated that they paid 471 non-resident pensioners during the quarter under review, these non-resident pensioners were paid locally,” Ipec said.

It noted that the issue of unpaid non-resident members continues to be a challenge.

The NRZ Contributory Pension Fund had 366 non-resident pensioners and the cumulative amount owed as at that date was ZW$556 million.

“However the pensioners are paid in half every quarter therefore the amount was not yet due and is not included in the Q3 2023 statistics,” Ipec said.

During the quarter under review, the amount was ZW$2.2billion translating to US$393,726.00.

The NRZ Contributory Pension Fund recently listed the Revitus Property Opportunities Real Investments Trust (Revitus REIT) which became the second REIT to be listed on the Zimbabwe Stock Exchange (ZSE).

The Revitus REIT is managed and administered by CBZ Asset Management unit Datvest, and Stanbic Bank comes in as a trustee to oversee the interests of investors.

Market watchers say REITs remain a fair investment option, especially for pension funds, providing an opportunity to raise funds for the rejuvenation of buildings, especially in CBDs, which are dilapidated and have become an eyesore.

However, the Revitus REIT raised $48,551 billion through an initial public offering (IPO), which opened on November 15, 2023, and closed on December 14, 2023. The REIT started trading on the ZSE on December 20, 2023.