Pressure mounts to place NSSA under IPEC

LIVINGSTONE MARUFU

Pressure is intensifying on government to bring the National Social Security Authority (NSSA) under the regulatory ambit of the Insurance and Pensions Commission (IPEC), following damning submissions during nationwide public hearings that exposed deep-seated governance concerns.

Finance, Economic Development and Investment Promotion Minister, Mthuli Ncube, has signalled that Treasury is now actively considering the move, in what could mark a significant policy shift aimed at tightening oversight, restoring public confidence, and safeguarding pensioners’ funds.

Stakeholders who appeared before Parliament during public hearings on the Insurance and Pensions Commission Amendment Bill overwhelmingly called for NSSA to be placed under IPEC supervision. They cited persistent weaknesses in governance structures, limited transparency, and inadequate accountability mechanisms as key risks undermining the integrity of the social security system.

The proposal, long debated within government corridors—has gained renewed momentum following extensive consultations spearheaded by the Parliamentary Portfolio Committee on Budget, Finance and Investment Promotion, reflecting growing consensus that stronger regulatory alignment is urgently needed.

Speaking in Parliament, Finance Minister Professor Mthuli Ncube acknowledged the growing consensus, indicating that Treasury is actively considering aligning NSSA with IPEC’s regulatory framework.

“During visits to various locations, there was a broad consensus that the National Social Security Authority (NSSA) should also be included under IPEC, particularly concerning pension funds,” Professor Ncube said.

He commended contributions from legislators including Pupurai Togarepi and Clemence Chiduwa, noting that the weight of submissions made it increasingly clear that NSSA’s inclusion under IPEC is both necessary and urgent.

The push to migrate NSSA oversight from the Ministry of Public Service, Labour and Social Welfare to IPEC, which falls under Treasury, is largely anchored on the need to strengthen prudential supervision of pension assets and ensure long-term sustainability of the scheme.

Portfolio Committee chairperson Lincoln Dhliwayo said the proposed legislative amendments present an opportunity to harmonise the regulation of pension funds, insurance companies, and medical aid societies under a single, technically competent authority.

“The Committee observed that the Bill has generated significant interest around the regulation of NSSA, medical aid societies, as well as insurance companies and pension houses. If fully implemented, the Bill has the potential to strengthen IPEC’s operations and improve the overall performance of the insurance and pensions sector,” Dhliwayo said.

Committee member Edwin Mushoriwa criticised the current exclusion of NSSA from the Bill, arguing that it undermines efforts to enforce sound financial management practices within the authority.

“One of the major issues with this Bill is the exclusion of NSSA. Given the strong views expressed during public hearings, there is a clear demand for NSSA to fall under IPEC, particularly in terms of prudential management of its resources,” Mushoriwa said.

He clarified that the proposal does not seek to remove NSSA from the Ministry of Public Service, Labour and Social Welfare, but rather to introduce an additional layer of professional oversight through IPEC.

“Our argument is not to relocate NSSA entirely, but to ensure that there is a competent supervisory board, like IPEC, with the expertise to manage and safeguard the authority’s assets. Over the years, there have been numerous reports of mismanagement and corruption linked to NSSA, largely due to weak oversight mechanisms,” he added.

Mushoriwa further drew parallels with other institutions, noting that it is possible to separate operational control from regulatory supervision without creating institutional conflict.

The calls were echoed by Zanu PF Chief Whip Pupurai Togarepi, who argued that NSSA lacks the technical capacity to independently manage pension funds without robust external oversight.

“I fail to understand why there would be resistance to placing NSSA under a competent regulator. At the end of the day, what matters is that when contributors retire, they receive meaningful pensions,” Togarepi said.

He emphasised that pension contributors are less concerned about NSSA’s asset portfolio and more focused on the institution’s ability to meet its obligations.

“When people retire, they are not interested in buildings owned by NSSA, they want assurance that their pensions will be paid. That assurance can only come through strong prudential supervision,” he said.

Togarepi highlighted IPEC’s regulatory role in the insurance sector, where firms are required to submit investment proposals for scrutiny, ensuring that funds are deployed in viable and secure ventures.

Legislator Clifford Hlatywayo described NSSA’s exclusion from IPEC oversight as a “serious anomaly,” pointing to the institution’s significant financial footprint.

“NSSA is arguably the largest pension fund in Zimbabwe, collecting contributions from both employers and employees, yet it operates without the same level of regulatory scrutiny applied to other players in the sector,” Hlatywayo said.

He referenced findings from past investigations which exposed widespread corruption within NSSA, warning that failure to subject the authority to IPEC oversight would amount to a dereliction of duty by Parliament.

“It would be a grave oversight for Parliament to pass this Bill without addressing NSSA’s regulatory gap,” he said.

The renewed push to bring NSSA under IPEC comes against the backdrop of growing public dissatisfaction over low pension payouts, despite years of contributions by workers.

Analysts argue that aligning NSSA with IPEC could mark a turning point in restoring credibility, improving investment discipline, and ensuring that pensioners receive fair value for their contributions.