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, published through Statutory Instrument 162 of 2023 to expedite the compensation process,” Ncube said.Meanwhile, during the year’s first half the insurance industry recorded a 12% increase in total industry assets from ZiG24.6 billion as at 31 December 2024 to ZiG27.6 billion as at 31 March 2025 driven by the growth in assets of life insurers and reinsurers.As at 31 March 2025, the pensions industry had 967 registered pension funds, a marginal increase from 966 funds registered as at 31 March, 2024.Of the registered pension funds, 479 were active, accounting for 49.5% of the industry, while the remaining 488 were inactive, that is, managing assets and liabilities, and no longer receiving contributions from members and employers.A total of 372 out of the 488 inactive funds had been earmarked for dissolution.The industry’s total membership of pension funds, excluding beneficiaries, increased by 1.2% from 979 563 in March 2024 to 990 801 as at 31 March 2025 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, published through Statutory Instrument 162 of 2023 to expedite the compensation process,” Ncube said.Meanwhile, during the year’s first half the insurance industry recorded a 12% increase in total industry assets from ZiG24.6 billion as at 31 December 2024 to ZiG27.6 billion as at 31 March 2025 driven by the growth in assets of life insurers and reinsurers.As at 31 March 2025, the pensions industry had 967 registered pension funds, a marginal increase from 966 funds registered as at 31 March, 2024.Of the registered pension funds, 479 were active, accounting for 49.5% of the industry, while the remaining 488 were inactive, that is, managing assets and liabilities, and no longer receiving contributions from members and employers.A total of 372 out of the 488 inactive funds had been earmarked for dissolution.The industry’s total membership of pension funds, excluding beneficiaries, increased by 1.2% from 979 563 in March 2024 to 990 801 as at 31 March 2025 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, published through Statutory Instrument 162 of 2023 to expedite the compensation process,” Ncube said.Meanwhile, during the year’s first half the insurance industry recorded a 12% increase in total industry assets from ZiG24.6 billion as at 31 December 2024 to ZiG27.6 billion as at 31 March 2025 driven by the growth in assets of life insurers and reinsurers.As at 31 March 2025, the pensions industry had 967 registered pension funds, a marginal increase from 966 funds registered as at 31 March, 2024.Of the registered pension funds, 479 were active, accounting for 49.5% of the industry, while the remaining 488 were inactive, that is, managing assets and liabilities, and no longer receiving contributions from members and employers.A total of 372 out of the 488 inactive funds had been earmarked for dissolution.The industry’s total membership of pension funds, excluding beneficiaries, increased by 1.2% from 979 563 in March 2024 to 990 801 as at 31 March 2025 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, published through Statutory Instrument 162 of 2023 to expedite the compensation process,” Ncube said.Meanwhile, during the year’s first half the insurance industry recorded a 12% increase in total industry assets from ZiG24.6 billion as at 31 December 2024 to ZiG27.6 billion as at 31 March 2025 driven by the growth in assets of life insurers and reinsurers.As at 31 March 2025, the pensions industry had 967 registered pension funds, a marginal increase from 966 funds registered as at 31 March, 2024.Of the registered pension funds, 479 were active, accounting for 49.5% of the industry, while the remaining 488 were inactive, that is, managing assets and liabilities, and no longer receiving contributions from members and employers.A total of 372 out of the 488 inactive funds had been earmarked for dissolution.The industry’s total membership of pension funds, excluding beneficiaries, increased by 1.2% from 979 563 in March 2024 to 990 801 as at 31 March 2025 “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, published through Statutory Instrument 162 of 2023 to expedite the compensation process,” Ncube said.Meanwhile, during the year’s first half the insurance industry recorded a 12% increase in total industry assets from ZiG24.6 billion as at 31 December 2024 to ZiG27.6 billion as at 31 March 2025 driven by the growth in assets of life insurers and reinsurers.As at 31 March 2025, the pensions industry had 967 registered pension funds, a marginal increase from 966 funds registered as at 31 March, 2024.Of the registered pension funds, 479 were active, accounting for 49.5% of the industry, while the remaining 488 were inactive, that is, managing assets and liabilities, and no longer receiving contributions from members and employers.A total of 372 out of the 488 inactive funds had been earmarked for dissolution.The industry’s total membership of pension funds, excluding beneficiaries, increased by 1.2% from 979 563 in March 2024 to 990 801 as at 31 March 2025 “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, published through Statutory Instrument 162 of 2023 to expedite the compensation process,” Ncube said.Meanwhile, during the year’s first half the insurance industry recorded a 12% increase in total industry assets from ZiG24.6 billion as at 31 December 2024 to ZiG27.6 billion as at 31 March 2025 driven by the growth in assets of life insurers and reinsurers.As at 31 March 2025, the pensions industry had 967 registered pension funds, a marginal increase from 966 funds registered as at 31 March, 2024.Of the registered pension funds, 479 were active, accounting for 49.5% of the industry, while the remaining 488 were inactive, that is, managing assets and liabilities, and no longer receiving contributions from members and employers.A total of 372 out of the 488 inactive funds had been earmarked for dissolution.The industry’s total membership of pension funds, excluding beneficiaries, increased by 1.2% from 979 563 in March 2024 to 990 801 as at 31 March 2025 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 Source: NewZimbabwe All Zim News is a central hub for all things Zimbabwean, curating news from across the country so no story is missed Alongside aggregation, our team of nationwide reporters provides real-time, on-the-ground coverage Stay informed and connected — reach us at admin@allzimnews.com. Source: Newzimbabwe
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