IPEC takes local companies to task

THE Insurance and Pension Commission (IPEC) has taken local companies to task over the non-payment of pension contributions after it emerged that arrears on self-administered funds were on the rise.

Report by Bernard Mpofu

The insurance regulator said despite registering growth, many companies were struggling to meet their pension contributions as the economy continues to underperform.

A self-administered fund is one whose assets are registered in its name.

The fund also has the autonomy to engage one or two asset managers to improve investment performance.

It, however, has stricter reporting requirements compared to an insured fund whose consolidated returns are done by the insurer.
Employers and employees jointly contribute 12,5% of salaries towards the voluntary pension contributions.

In its fourth quarter report on self-administered funds, IPEC said the sector reported contributions growth of 92% to close 2012 at $284 million (September 2012: $147 million).

IPEC raised a red flag after it emerged that arrears for employers contributions made to self-administered funds were on the rise.
“However, 43% or $122 million of the contributions were in arrears (September 2012:28% or $41 million).

“Various rehabilitative measures are ongoing . . . IPEC has engaged employers to tender payment plans in order to rectify such fund arrears in terms of the (Insurance) Act,” reads a report for the period ending December 31 2012.

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1 Comment

  1. This is high end nonsense…why should people continue contributing to pension funds who have fleeced them this bad in the past. After 30 years contribution you get 100 dollars as final payoff while the staff and management get all the money? How heartless is this? Do these IPEC joker clowns imgine the land is overflowing with idiotic sheeple waiting patiently to be fleeced by them. Is this because they pocket a percentage of the pension contributions, where is the SHAME? And what happened to the phantom actuary who was going to set things right? Indeed, pray tell us what happened to this ghost?

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