Online Reporter
Judith Phiri
Zimpapers Business Hub
THE Insurance and Pensions Commission (IPEC) has expressed concern over the persistent data inconsistencies plaguing the sector, emphasising the need for accurate reporting and correct calculation of member benefits.
As the sector continues to grow, with a total of 967 registered occupational pension funds as of March 31, 2025 — the same number reported on December 31, 2024 — it has been highlighted that it is imperative that these issues are addressed.
In its 2025 first quarter pensions sector report, the Commission said data inconsistencies hindered effective oversight and accurate assessment of the industry’s performance.
“Persistent data inconsistencies remain a concern. The commission is committed to resolving these and other related issues to enable accurate reporting and ensure the correct calculation of member benefits,” said IPEC.
“Going forward, the sector must prioritise improving contribution remittances by ensuring that employers consistently meet their obligations. This is essential to securing meaningful and sustainable benefits for pensioners.”
It said another major challenge facing the pensions sector was the widespread failure by many employers to remit contributions, leading to a serious shortfall in funds available for pensioners.
IPEC said this problem threatens the financial security of pensioners and demands urgent corrective action from sponsoring employers.
“The commission urges all stakeholders within the pensions delivery chain to actively contribute to improving outcomes for pension scheme members, particularly by ensuring the timely payment of benefits that align with members’ reasonable expectations.
“The importance of comprehensive pension reforms, driven by a collaborative, multi-stakeholder approach, cannot be overstated.”
Of the 967 registered funds, half of them are inactive, with 78 percent of these (372 funds) earmarked for dissolution.
IPEC said that of the total funds, 34 were defined benefit schemes, while three were hybrid and 930 were defined contribution schemes.
The commission added: “As at the date of reporting, the sector had 954 funds, which outsourced fund administration services, of which 798 were insured funds and 155 self-administered funds. The other 14 were self-managed, standalone funds.”
“As at March 31, 2025, there were 14 registered fund administrators. Of these, five were independent, while the remaining nine were registered life assurance companies engaged in fund administration.”
Despite some of the challenges, the sector has shown signs of growth, with total membership, excluding beneficiaries, increasing by 1,37 percent to 990 801 as of March 31, 2025.
IPEC said this growth could be attributed to new entrants, highlighting the need for effective management of funds to ensure that members receive the benefits they deserve.
“The pensions sector’s total assets increased to ZWG66,391 billion, equivalent to US$2,48 billion at the official exchange rate. This represents a 10 percent growth from the US$2,26 billion recorded as at December 31, 2024, largely driven by revaluation gains, new investments and positive fair value adjustments in investment properties and equity instruments,” added the Commission.
IPEC said as at March 31, 2025, the value of investment properties increased by 8 percent to US$1,14 billion (ZWG30,5 billion), up from US$1,06 billion.
While the value of investment properties increased, the proportion of this asset class to total assets marginally decreased to 46 percent, from 47 percent reported in the last quarter.
“The value of investment properties has increased by 8 percent to US$1,14 billion, while quoted equity investments have marginally increased by 0,40 percent to US$465,56 million.
“Unquoted equity investments have shown significant growth, increasing by 33 percent to US$105 million,” read part of the report.
“Prescribed asset investments have also risen by 5 percent to US$280 million, driven by revaluation gains and new acquisitions. As IPEC continues to enforce compliance with approved instruments, it is essential that the sector meets the minimum regulatory threshold of 20 percent.”
