PHILLIMON MHLANGA IN VICTORIA FALLS
Government has begun working on the compensation framework for pensions eroded after the post dollarisation conversion of balances from Zimbabwe dollars to United States dollars, Finance and Economic Development minister Mthuli Ncube said Thursday.
Many Zimbabweans lost their investments during the process of conversion of the Zimbabwe dollar to United States currency which was commissioned in 2015, resulting in huge pension investments suddenly turned into few cents or dollars.
“As you may be aware, the Commission of Inquiry which was approved by both Cabinet and Parliament in 2018, under paragraphs 991 and 992 of the report, recommend that as the industry regulator, the Insurance and Pension Commission (IPEC) has to assume overall oversight over the implementation of the compensation framework by the industry, as well
as obligating the institutions to submit their proposed compensation schemes. In this regard, IPEC had already been mandated to look into compensation modalities,” Ncube said in a speech read on his behalf by a ministry official at the on-going Zimbabwe Association of Pension Funds congress in the resort town of Victoria Falls.
“We are seized with the compensation issue and we have begun the process.”
He said IPEC “will soon be engaging industry to discuss this issue” and the initial consultative meeting was supposed to take place last week with industry players to kick-start the process. The meeting was postponed to a later date.
Ncube encouraged players to participate in the implementation of the proposed compensation framework without further delay.
“The implementation of this framework will also bring back the much needed public confidence in the pension funds sector, particularly on the part of the contributing members,” he said.