Address pensioners’ plight as a matter of urgency

subsequent launch of the multiple currency trading system that saw years of contributions wiped out in their face.
Up to this day, most of them are receiving paltry amounts that average US$30 per month in payouts, making their lives difficult at a time when social safety nets are almost non-existent.

Their years of contributions, which were supposed to provide a fall back position, were eroded by inflation, leaving them stranded.
A monthly payout of US$40 is hardly enough to sustain a pensioner, many of whom depend on these funds for their day-to-day upkeep.
With the advent of the HIV/Aids scourge that has largely affected the economically active age group, many of the pensioners have become breadwinners, looking after orphans left by their children and other relatives.

This scenario compounds an already bad situation.
It is in this vein that we commend Government for initiating a process that will review the pension structure with the ultimate intention of giving more realistic pay outs.
The cost of living has increased significantly in recent months, with a family basket now at US$504.

Under the proposed pension reform, Government intends to create a consolidated pension fund that will not only guarantee benefits that are consistent with one’s contribution but will also allow an injection of funds for broader investments.
Such a separate pension fund, as opposed to the current Pay As You Go system, will enable Government to create a separate portfolio where contributions would be managed and invested to multiply resources.

It is from these that payments would be made.
The scheme also allows funding in advance as it creates more value for pensioners.
The current system is such that pensioners are paid from current contributions hence limiting payments only to available resources, with no value added.

Other pension funds should take a cue from this initiative by Government. It is only logical that efforts be pursued to improve the pensioners’ plight.
Pensions are a form of saving that should present good returns to the contributor but this is not currently the case.

Statistics show that by mid this year pension fund investments on the Zimbabwe Stock Exchange were more than US$2,5 billion, representing about 60 percent of total investment on the bourse.
Such huge investments and those in the property and other sectors of the economy should translate into more economically viable payouts to pensioners.
Many have worked for as long as 50 years, investing their time and resources into companies and yet they are left to make do with a US$40 cheque at the end of the month.

With many of these stationed in rural areas, half of the payouts are accounted for by transport, leaving negligible resources to buy food and other needs.
It is because of this that many who reach retirement age opt to remain in employment to ensure a decent salary.

This is quite understandable and yet unfair to the pensioner because they cannot retire to a miserable life when they still have a bit of energy to soldier on in full employment.
Therefore, it is incumbent upon pension funds to ensure that the monthly pay-outs are decent, relative to the obtaining standard of living.

The primary objective of pension funds is to accumulate sufficient assets through contributions and investment income to satisfy all pension obligations of the contributor on a timely basis.
This can be achieved once the pension funds become resolute in their efforts to amass and then pay out respectable pensions.

On the flip side, it is also imperative for Government and pension funds to review individual contributions.
Where they seem to be too little, a raise would be required to ensure that when the time comes, the contributor would have something significant to take home.

The current average 10 percent seems inadequate to ensure a good pay out. Some schools of thought have even argued that this should be raised to 30 percent of income.
The appropriate figure will need to be debated with guidance from actuaries and relevant experts in this US dollar era.

Adjustments will obviously be made when the economy reverts to the Zimbabwe dollar or when the rand is adopted as proposed under Sadc.
Zimbabwe is still facing challenges that have affected the standard of living and the pensioner would need better pay cheques to stave them off.

They deserve the best after having worked and contributed to the welfare of their respective organisations and the economy at large.
Their plight certainly needs redress.