PENSIONERS, whose retirement contributions were eroded at the height of dollarisation of Zimbabwe’s economy in 2009, are set to be awarded compensation for pension value losses.
Addressing guests during the Insurance and Pensions Commission (IPEC)-organised media awards ceremony in Harare Wednesday, Finance and Economic Development Minister, Professor Mthuli Ncube said crafting of the framework for compensation was completed and regulations to guide the exercise now await gazetting.
“The insurance and pensions industry is grappling with low confidence due to the low values that policy holders and pensioners got after adoption of the multi-currency system in 2009.
“However, I am glad that finalisation of the compensation exercise as recommended by Commission of Inquiry into the Conversion of Insurance and Pensions Values from the Zimbabwe dollar to the United States Dollar, is almost done,” he said.
“It is government’s expectation that IPEC and the industry will expedite the compensation exercise, as soon as the regulations are gazetted.
“Compensation for the 2009 losses will go a long way in restoring confidence in insurance and pensions.
“We, therefore, need to work together and implement this exercise for the future sustainability of the insurance and pensions industry.”
Ncube said the importance of the insurance and pensions industry to national development cannot be overemphasised.
“The industry falls under the Macro-Economic Stability and Financial ReEngagement National Priority Area of the National Development Strategy (NDS1).
“As outlined in NDS1, the insurance and pensions industry which is part of the financial sector, plays an important role in ensuring sustainable growth through mobilising savings, directing funds into productive sectors, management of risks, efficient allocation of resources and facilitating delivery of products and services.
“Government notes the pensions and insurance sectors’ investments in prescribed assets in 2022, which amounted to ZW$74 billion and ZW$41 billion, constituting 7% and 9% of the industry assets, respectively.
“These levels are below the prescribed levels for the insurance and pensions industry, which is regrettable. I call upon the sector to comply with this statutory requirement.
“There is no justification for continued noncompliance considering that government now confers prescribed asset status even on private equity if it is of national importance,” said the finance minister.
