THE Insurance and Pension Commission names & shames 57 entities THE Insurance and Pension Commission (Ipec)

Nqobile Bhebhe, Senior Business Reporter
THE Insurance and Pension Commission (Ipec) has named and shamed 57 entities drawn from mining, local authority, energy, finance and higher learning over failure to remit pension contributions amounting to ZW$5,3 billion.

The pension contribution arrears stood at about ZW$5,3 billion as at March 31, 2022, said the regulator in a public notice published yesterday.

Ipec said it has been receiving complaints from pension scheme members who have received reduced or no benefits owing to failure by their sponsoring employers to remit pension contributions after deducting the same.

“Ipec has noted with concern the continued failure by some sponsoring employers to remit pension contributions to their respective pension funds to the detriment of pension scheme members who end up receiving reduced or no benefits when they become due,” it said.

“Employers that deduct pension contributions are required in terms of Section 2 (a) of Statutory Instrument 61 of 2014 to pay contributions into the pension fund within 14 days from the end of the calendar month to which they refer.”

According to a list released, Local Authorities Pension Fund and Unified Councils Pension Fund (UCPF) dominate with 15 councils, which include Bulawayo, Harare, Chinhoyi, Chitungwiza, Kariba, Kwekwe, Victoria Falls and Plumtree Rural District Council, among others.

Hwange Colliery Company Limited

In the mining and energy sector, Hwange Colliery Company, How Mine, Zimbabwe Consolidated Diamond Company, Shamva Gold Mine, Zesa Holdings, Zimbabwe Electricity and Transmission Distribution Company, and Rural Electrification Authority, feature in the list.

Other entities are Innscor Africa, Simbisa Brands, FBC Holdings, National Railways of Zimbabwe, Civil Aviation Authority of Zimbabwe, Zimbabwe Revenue Authority, Great Zimbabwe University and Grain Marketing Board.

Zimbabwe Pension and Insurance Rights Trust general manager, Mr Martin Tarusenga, said the non-remittance of contributions is fraudulent.

“Non-remittance of pension contributions legally deducted from an employee’s monthly earnings, and legally meant to be immediately remitted to a given pension fund is simply fraudulent,” he commended.

“The company in question should be jailed forthwith — it’s like taking money away from a weak elderly person in their face and getting away with it, with impunity,” said Mr Tarusenga in emailed response to the Business Chronicle.

“The question of challenges by the companies does not come in, it’s just collecting from employees and passing on to the pension fund.

And yet Ipec goes on without acting as a regulator charged with the responsibility to protect pension fund members, and pensioners.

“This matter can only be resolved when the regulatory system is strengthened, in particular when Ipec office bearers are not conflicted to the interests of pension fund members and pensioners.”

Ipec once considered a proposal that would have seen workers accessing part of their pension funds before retirement age so as to preserve value for their contributions.

Errant employers have in the past been accruing huge debts to pension funds by not remitting contributions, even though they deduct these from employees’ pay, and that has paralysed financial operations of many funds.

In March, the Senate debated the proposed Pension Fund and Provident Fund Act, which seeks to upgrade the present law to protect pension funds.

Errant employers who do not remit the pension contributions of their employees might face both criminal charges and civil action.

Clause 17 of the Bill compels employers to remit pension contributions deducted from their employees within 14 days from the end of each month or face criminal charges and civil action, with company directors or executives ordinarily responsible for pensions facing action in their personal capacity as well as representatives of the employer. — @nqobilebhebhe

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