adminthe Parliamentary Portfolio Committee on Public Service, Labour and Social Welfare this week said Government is operating an unfunded non-contributory plan. In the plan money deducted as pay-as-you-earn (PAYE) by employers is used to pay pensioners.
“Pensioners are earning paltry amounts so we believe we need to come up with a fund that will boost the benefits to pensioners. Government wants to introduce a funded, contributory-defined scheme in the public sector that will create an adequate package for retirees,” he said.
Mr Sisimayi said Government is consulting with the Public Service Commission after which an evaluation report would be submitted to Cabinet and other stakeholders.
The report would be tabled before Parliament. Mr Sisimayi could not, however, ascertain whether the fund would improve pension pay outs. He said details would be made available once the draft becomes law. Government pays out between US$10 to US$50 a month.
Zimbabwe Pensions and Insurance Rights Trust general manager Mr Martin Tarusenga said the fund would improve pensioners’ benefits.
If done properly it will definitely change pensioners’ welfare drastically.”
Mr Tarusenga said while such funds exist in the private sector, the civil sector does not have such a fund. He said civil servants pensions rely on the pay-as-you-go taxes. He, however, said pension service providers should fall under the same watchdog.
Online Reporter