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Tawanda Musarurwa
Senior Business Reporter
Pension funds are now required to give members at least 90 days to verify their existence before suspending payments as pensioners’ mobility has been severely curtailed by Covid-19 risks and necessitated restrictions.
As at March 9, 2021 Zimbabwe had recorded 36 321 Covid-19 cases and 1 489 deaths, according to data from the Ministry of Health and Childcare.
The elderly are among the most vulnerable groups to the highly infectious virus.
Said Insurance and Pensions Commission (IPEC)’s director of pension supervision Cuthbert Munjoma:
“In line with our mandate of protecting the interests of policyholders and pension scheme members, we felt that there is need to put in place a 90-day moratorium so that pensioners’ benefits are not unnecessarily suspended on account of failing to submit these certificates of existence owing to Covid-19 restrictions.
“The measure is expected to curtail the continued growth in the number of suspended pensioners, which currently stands at 12 773 members.”
All things being equal, pensioners are required to submit certificates annually showing that they are still alive particularly for those whom benefits will cease in the event that the primary member
dies.
Failure to submit the certificate may imply that the member has probably passed on, and as such funds tend to suspend benefits under such circumstances until confirmation of death or the member proving that he/she is still alive.
The sector regulator has issued Circular 7 of 2021, which grants the moratorium of at least three months.
“Desirous of ensuring equitable treatment of pensioners in response to the Covid-19 environment, the Commission directs that the policies governing submission of proof of existence and suspension of pensioners should be reviewed to consider
that the Covid-19 related restrictions and their impact on the capacity of the pensioners to access, execute and deliver the certificates of existence; the need to grant a moratorium concerning the timelines within which the certificates should be submitted in response to the Covid-19 related restrictions,” said IPEC Commissioner Dr Grace Muradzikwa
in a February 2021 notice to players in the
industry.
The regulator wants the funds to be innovative around engagement with their members so as to minimise the need for pensioners to physically avail themselves at offices.
“The moratorium should extend to 90 days at a minimum; and exploring alternative ways of communicating with pensioners and verifying their continued existence,” she said.
“Prior to suspending pensions in payment
the fund or administrator is required to demonstrate to the commission that the above standards are
met.”
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