Date first published: AllZim News is a news/content aggregation platform
FILE PHOTO: Pensioners lining up to process their benefits Spread This News By Alois Vinga THE government has set aside US$25 million for pre-2009 pension losses to compensate civil servants, who were hard hit by hyperinflation linked value erosion. Pensioners lost significant value during the 2008-9 hyperinflationary era which saw thousands of workers being paid peanuts. In a bid to avert the crisis, the government appointed the Justice Leslie Smith Commission of Inquiry into pensions underpayments.
When it presented its findings it established a series of anomalies and recommended the matter’s reconsideration.
Presenting the Mid Term Budget Review, Finance Minister Mthuli Ncube said government remains committed to compensating pensioners, whose contributions lost value due to the 2009 currency reforms. “To fulfil this commitment, the Government allocated US$25 million towards the compensation of Government pensioners who qualify for pre-2009 loss of pension values. “As a result, 35 538 beneficiaries were compensated during the period under review.
As at 31 March 2025, IPEC (Insurance and Pensions Commission) had approved two private compensation schemes and disbursements of close to US$500 000 to eligible pensioners have been made,” he said. Overall, Ncube said the approval rate for compensation schemes has been protracted due to several factors including some pension funds and insurers having serious data gaps relating to the investigative period, making it difficult to compute compensation as per the provisions of Statutory Instrument 162 of 2023.
The Treasury boss said all life companies are struggling to separate assets for shareholders and policyholders for the investigative period and substantial funding shortfalls for some pension funds as available assets cannot fully support the computed liabilities. “In light of the above challenges, the government is in the process of amending the Pre-2009 Compensation Regulations,
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