Pension sector assets up 10%
CLOUDINE MATOLA
The pension sector’s total assets rose by 10% to US$3.41bn as at March 31, 2026, driven by fresh investments and positive fair value adjustments in property and equities, the Business Times can report.
According to the Insurance and Pensions Commission (IPEC) quarterly report for the period ended March 31, 2026, total assets increased from US$3.11bn recorded as at December 31, 2025.
Investment property remained the dominant asset class, growing by 3% to US$1.38bn from US$1.34bn in the previous quarter, and accounting for 40% of total sector assets.
Quoted equities also strengthened significantly, rising by 36% to US$948.18bn, reflecting improved market valuations and portfolio gains, and now representing 28% of total assets.
Despite the strong asset performance, pension contribution arrears continued to mount, increasing by 18% to US$148.96m from US$126.26m in the prior comparative period.
In response, IPEC reiterated its readiness to intensify enforcement measures, including garnishment orders against persistently non-compliant employers.
“Pension contribution arrears also grew during the period, increasing by 18% from US$126.26m to US$148.96m, representing 4% of the sector’s overall asset base. Continued efforts are being made by the Commission to enforce timeous remittance of pension contributions by sponsoring employers to their respective funds. Additionally, engagement with non-compliant sponsoring employers is ongoing in accordance with Section 16 of the Pensions and Provident Funds Act [Chapter 24:32], and enforcement measures such as garnishment are reserved for cases where non-compliance has continued despite regulatory interventions,” IPEC said.
Unclaimed benefits also edged up by 8% to US$22.28m from US$20.58m, largely driven by the reclassification of members previously earmarked for transfer to the Guardian Fund but not yet processed.
The number of members with unclaimed benefits surged by 139% to 250,435 from 104,846 in the prior period, largely due to the Construction Industries Pension Fund (CIPF) reclassifying 146,861 dormant members into the unclaimed benefits register.
On the regulatory side, prescribed asset investments increased by 22% to US$312.77m from US$256.02m as at December 31, 2025.
However, sector compliance remains subdued, averaging 9%, well below the statutory 20% threshold.
“Despite the growth, sector compliance averaged 9%, well below the 20% minimum. IPEC is urging pension funds to diversify into more approved prescribed assets,” the Commission said.
