Sundaymail Editor
Tawanda Musarurwa in VICTORIA FALLS
Pension funds that are transacting in foreign currency should pay out benefits in the same currency, the Insurance and Pensions Commission (IPEC) has said.
Addressing delegates at the ongoing Zimbabwe Association of Pension Funds (ZAPF) annual conference in Victoria Falls on Thursday, IPEC director for pensions Mr Cuthbert Munjoma called for better disclosure on pension funds’ forex business.
“We have actually requested disclosure as part of the terms for forex business,” he said.
“We have noted that the beneficiaries of pension funds’ forex business has largely been service providers; that is, actuaries, investment managers and other stakeholders, but not the pension scheme members.”
In November 2020, Government promulgated Statutory Instrument 280 of 2020, which allowed Insurance companies and pension funds to carry out business in forex.
This followed a request from the industry occasined by the need to hedge contributions, investments and assets against inflationary pressures.
Bongani Ndlovu
Online Reporter