Sundaymail Editor
Online Reporter
THE Insurance and Pensions Commission (IPEC) says about 50 companies are defaulting on pension remittances to various pension schemes, with arrears standing at $5,3 billion as at March 31, 2022.
In a statement on Wednesday, IPEC said despite failing to remit pension contributions, the employers continue to deduct subscriptions from their employees’ salaries.
National Railways of Zimbabwe (NRZ), Harare City Council, Zimbabwe Electricity Transmission and Distribution Company (ZETDC), Hwange Colliery and Bulawayo City are some of the major defaulters with a combined total of over $2 billion in arrears.
“Employers that deduct pension contributions are required in terms of Section 2 (a) of Statutory Instrument 61 of 2014 to pay contributions into the pension fund within fourteen days from the end of the calendar month to which they refer,” reads the statement.
“IPEC has been receiving complaints from pension scheme members who have received reduced or no benefits owing to failure by their sponsoring employers to remit pension contributions after deducting the same.
“Pensions contribution areas stood at about $5,3 billion as of March 31, 2022.”
IPEC has called upon trustees of the affected pension funds to put measures in place to ensure the employers remit outstanding contributions.
Online Reporter