Pensioners get compensation for lost savings

By The Standard and Newsday | Jan. 22, 2022 | 2 Min read

A commission of inquiry was once set up to investigate the conversion of pensions and insurance benefits in United States dollars from the moribund Zimbabwe dollar.

BY HARRIET CHIKANDIWA GOVERNMENT has started paying pensioners a maximum of US$100 in compensation for losses suffered after the country adopted the multi-currency system in 2009.

A commission of inquiry was once set up to investigate the conversion of pensions and insurance benefits in United States dollars from the moribund Zimbabwe dollar.

Insurance firms have been clashing with pensioners and policyholders, who are unhappy with the paltry benefits being disbursed to them. Pension companies claim contributions had been wiped by inflation.

In a statement yesterday, Finance minister Mthuli Ncube said government was seeking to bring closure to the matter.

“To cushion pensioners, Treasury through the 2021 national budget allocated an investment worth US$75 million in Kuvimba Mining Housing for the purpose of compensating pensioners. It is the investment return that is earmarked for compensation to private occupational pensioners so that pensioners benefit on a sustained basis,” Ncube said.

“Subsequently to the dividends, the ministry tasked Ipec [Insurance and Pensions Commission] to cone up with the implementation modalities, both from technical and operational point of view, which would resultantly see the most valuable pensioner benefiting from the first tranche.

“These modalities were concluded in December 2021 and disbursements to almost 4 000 eligible pensioners have commenced in earnest, with each pensioners getting US$100 each cash through BancABC and its kiosk in Pick n Pay outlets across the country. Payment of pensioners began on January 10 this year.”

He added: “As government, we are aware that not all pensioners will benefit from this first tranche dividend distribution. However, rest assured that future dividends will target other cohorts of pensioners as and when the dividend is declared.”