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Tendai Gukutikwa
Post Reporter
BLESSING Chipokoto (39) (not real name) has been committing pension fraud for almost a year.
Every month he collects his late mother’s pension benefits from the National Social Security Authority (NSSA), even though she is dead and he is not a beneficiary.
His mother’s death was never reported or registered, so he has been able to get away with this crime.
Chipokoto is therefore one of the people who has been stealing money from the pension industry.
He does not know about the life certificate requirement and he thinks he deserves to receive his mother’s pension.
He said he will not notify NSSA about his mother’s death and has no intentions of letting go of the monthly pay-out.
However, he may soon face legal consequences for his actions as what he is doing is criminal and prejudices the scheme.
In July 2022, a quartet of Harare-based pension fraudsters was charged with pension fraud worth over ZWL6 million.
Pension fraud is a serious challenge in Zimbabwe.
Authorities have noted that some people use fake identity cards or mobile phone SIM cards to access deceased pensioners’ bank accounts.
According to the Justice Smith Commission of Inquiry, which was adopted by Cabinet in 2018, the pension industry needs to modernise and strengthen its regulation and supervision to protect consumers and prevent fraud.
The Commission also recommended policy reforms, the adoption of a comprehensive social insurance scheme, and the promotion of good governance practices.
One way to detect and stop pension fraud is to require pensioners or their beneficiaries to submit a life certificate or certificate of existence every year.
This document proves that they are still alive and entitled to receive the pension.
If they fail to submit the certificate by a specified date, their accounts and membership will be suspended until they can verify their identity.
As of December 31, 2018, the pension industry in Zimbabwe had suspended at least 12 480 accounts through this route.
The life certificates protects both the pension industry and its members from people who may want to continue claiming benefits which should stop upon the death of the pension fund member or their beneficiary.
The Insurance and Pensions Commission (IPEC) website states that in the event that the benefits are not claimed within five years of the member’s suspension, they are transferred to The Guardian Fund which is administered by the Master of the High Court in line with Section 99 (1) and (3) of the Administration of Estates Act, Chapter 6:01.
A recent survey conducted by The Manica Post revealed that some spouses of NSSA pensioners are unaware of the life certificate, a document that proves that the pensioner is still alive and eligible for the benefits.
If the pensioner dies, the spouse must notify NSSA and apply for a survivor’s pension, otherwise they will be committing fraud by collecting the deceased’s pension.
Gogo Chipo Sivindani of Honde Valley said she has never heard of the life certificate.
“I was not formally employed but my husband was a teacher and he gets a pension. Sometimes I go to Mutare to collect it for him, but he never mentioned anything about a life certificate. I thought that when he dies, I will automatically inherit his pension and continue to receive it on behalf of the family. Is that not how it works?” she asked.
The survey also revealed that many pensioners are aware of the life certificate and its importance.
Sekuru Tichaona Mutasa of Watsomba said he has been submitting his life certificate to NSSA every year without fail.
“We are always reminded to provide this certificate as evidence that we are still alive. We were also advised to report to authorities any cases of people who are collecting pensions of deceased members without informing NSSA,” he said.
In an interview, NSSA deputy director for marketing and public relations, Mr Tendai Mutseyekwa spoke about the measures taken by the Authority to reduce the number of ghost pensioners in Zimbabwe.
He said NSSA has a direct link with the Registrar General’s Office and they are notified whenever a member’s death is registered.
This helps in preventing fraud and misuse of pension benefits by relatives or other parties.
Mr Mutseyekwa said NSSA requires its pensioners to submit life certificates every year to prove that they are still alive and eligible for their monthly pensions.
“This is a standard practice in the pensions industry worldwide and it is not meant to inconvenience or harass the pensioners. We urge pensioners to comply with this requirement aS failure to do so may result in their pensions being discontinued,” said Mr Mutseyekwa.
He also said some pensioners do not provide their life certificates as they do not understand the importance of doing so.
He went on to advise the public to report any deaths of NSSA members to the Authority as soon as possible, and to contact NSSA for any queries or assistance.
Mr Mutseyekwa also encouraged people to report cases in which they know of undeserving people who are receiving pensions of deceased people.
“Some people do not provide the Authority with their life certificates out of ignorance, not because they want to defraud the pensions industry. However, when we continue paying out pensions to someone who is dead but whose death has not been reported to the Authority, it prejudices the scheme as well as other members as the payroll will continue ballooning. We will be paying ghost pensioners, people who are undeserving of the pension,” he said.
“When we only pay these benefits to deserving people, it will enable us to pay better pensions. Paying to ghost pensioners affects the scheme and the level of benefits that we are giving to our pensioners,” he said.
NSSA, however, has a provision that allows for deceased pensioners’ surviving spouses and beneficiaries to keep receiving their beloved’s pensions.
However, they have to notify NSSA of the death of the pensioner first and get the pensions registered in their names.
“There is a formula that is applied universally where the pensioner gets the full amount and after their death, the beneficiary will get 40 percent of the late pensioner’s full amount monthly,” said Mr Mutseyekwa.
While making a presentation during a Journalism Mentorship Programme recently, NSSA’s research and schemes planning manager, Mr Cosmas Chikwawawa said to curtail these and other challenges, NSSA has been regularly undertaking pensioner engagements.
“Engagements have helped with information dissemination as well as communicating key developments in NSSA. These engagements have also provided platforms through which pensioners provide feedback to help improve service delivery,” he said.
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