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Old Mutual begin pension payouts

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Old Mutual Life Assurance Company Zimbabwe says it has begun carrying out a payout exercise as policy values have since been converted to United States dollars.

In a statement, the company said the offer was only limited to five policies namely, endowments, whole life, performance profits, Greenlife and retirement annuities taken out prior to 2004.

“Policyholders have the option to encash their policy values or transfer their values to existing products on advice from the company’s financial advisors,” said the notice.

The company stated that in respect of the Comfort Plan and Comfort Plus policies, the option to encash is allowed only if the policy value is less than or equal to $250.

“Where the policy is greater than $250, the policy must remain in force with benefits only payable from age 55. Policyholders will be able to invest more contributions into their policies until maturity,” the company said in a statement.

Most pension companies have had to adjust the pension payouts to US dollars since the country adopted multiple currency system in 2009 as a way of arresting the decade-long economic decline that was marred by hyperinflation.

Speaking at the commemoration of the Zimbabwe Defence Forces’ day on Tuesday, President Robert Mugabe said: “The issue of pensions for members who retired prior to the emergence of the multiple-currency regime should receive urgent attention.”

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