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LABOUR organisations should engage employers who are not remitting contributions to pension funds in order to protect members against old age poverty as several local authorities and other entities are in a combined $179 billion arears, the industry regulator has said.

Employers that deduct pensions contribution are required in terms of section 16(3) of the Pensions and Provident Funds Act (Chapter 24:32) to pay contributions to the respective pension funds not later than 14 days after the end of the month in which the contribution is payable.

“The Insurance and Pensions Commission (IPEC) publishes this notice in the public interest. IPEC hereby publishes the Top 50 sponsoring employers, by value, with pension contribution arrears aged 30 days and above as at December 31,2023.

“The purpose of this notice is to inform members belonging to these funds as part of the Commission`s disclosure,” the Commission said in a notice.

IPEC called on board members of the affected pension funds to put measures in place to ensure the defaulting employers remit outstanding contributions, for the benefit of their pension scheme members.

“In addition, labour organisations are urged to engage the employers who are not remitting pension contributions to protect members against old age poverty,” it said.

IPEC also implored employers and board members to familiarise themselves with the deterrent provisions of the new Pensions and Provident Funds regarding pension contributions.

On top of the list of defaulters is the Zimbabwe Electricity Transmission Distribution Company (ZETDC) which has arears of ZWL65 billion, the Zimbabwe Power Company (ZWL26 billion), ZESA Holdings (ZWL10 billion), ZESA Enterprises (ZENT) (ZWL7 billion), the Rural Electrification Agency (ZWL$1,2 billion) and ZESA Executives ($6 billion).

These power utility entities pensions contributions are administered by the Zimbabwe Electricity Industry Pension Fund (ZEIPF).

Other entities in the top 10 include Shamva Gold Mine (ZWL3 billion), the National Railways of Zimbabwe (ZWL billion), the Civil Aviation Authority of Zimbabwe (ZWL3 billion) and Freda Rebbeca Gold Mine ($7 billion).

On the list are close to 20 local authorities including Rural District Councils (RDCs) namely Chitungwiza Municipality ($982 million), Binga RDC ($917 million), Chipinge RDC ($682 million), Chimanimani RDC ($424 million), Beitbridge RDC ($530 million), Chegutu RDC ($462 million), Makonde RDC ($588 million).  Other local authorities include Victoria Falls, Mwenezi, Tsholotsho, Pfura, Zibagwe, Chikomba, Matobo, Bubi, Churumhanzi, Mhondoro, Murehwa.

-New Ziana