Vusumuzi Dube
Rutendo Nyeve, Sunday News Reporter
THE National Railways of Zimbabwe Pension Fund has started paying its pensioners in forex every month to cushion them against the prevailing economic hardships characterised by run-away inflation.
The monthly forex payments started last month as an improvement from the quarterly forex payments that were done before. NRZ Contributory Pension Fund Board Chairperson Mr Takunda Madanha confirmed the latest development saying the pension fund had been paying a forex component from last year on a quarterly basis.
“In a bid to protect the most vulnerable pensioners against the prevailing economic hardships and the loss of ZWL value against the USD, effective May 2023 payroll, the fund introduced gross minimum pensions of US$30 for pensioners. Based on the available cash flows, pensioners earning above the minimum pension were paid part of their pension in US$.
In the June 2023 payroll, the fund shall target members in the lower bracket on a proportionate distribution. It must be noted that all pensioners will benefit from USD pension payments. The fund has been paying USD payments to its pensioners on a quarterly basis.
However, given the need for the Fund to regularly cushion its pensioners against the prevailing economic challenges, with effect from May 2023, the Fund started paying part of the pension benefits in USD on a monthly basis,” said Mr Madanha.
He said the fund had effected pension increases following revaluation gains and would continue to evaluate the gains.
“As partial distribution of December 2022 revaluation gains, the fund has so far awarded pension increases of 25 percent which came into effect on 1 January 2023. This was processed in the February 2023 pensions payroll.
This was followed by another 25 percent increase effected on 1 April 2023. The increase was processed and payment effected in the May 2023 pensions payroll,” said Mr Madanha.
NRZ Contributory Pension Fund is a stand-alone pension fund which administers pension benefits for current and retired members from NRZ, Road Motor Services and Railways Employment Council. @nyeve14
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