Online Reporter
Tapiwanashe Mangwiro, Zimpapers Business Hub
THE Insurance and Pensions Commission (Ipec) has raised concern over the growing volume of unclaimed pension benefits and persistent compliance gaps across the sector. It has warned that pension funds failing to remit benefits older than five years are in breach of the law, as stipulated under the Estate Administration Act.
According to Ipec’s Pensions Report for the half-year ending June 2025, liabilities from unclaimed benefits surged to US$15.9 million, up from US$15.4 million in the previous quarter.
The total number of members with unclaimed benefits also rose slightly to 100 354, marking a 0.74 percent increase from March. Ipec attributed the rise in unclaimed benefits primarily to pension adjustments and bonuses awarded to members.
The commission’s analysis revealed that stand-alone funds account for the largest share of members with unclaimed benefits, representing 81.4 percent, followed by insured funds at 12.5 percent, and self-administered funds at 6.1 percent.
However, in terms of the total value of unclaimed benefits, insured funds hold the highest amount at US$147.4 million, compared to US$141.1 million under self-administered schemes and US$118.1 million in stand-alone schemes.
“The commission is encouraging the industry to intensify efforts to locate members and surrender unclaimed benefits that are over five years old to the Guardian Fund,” Ipec stated in the report.
The regulator further noted that while most unclaimed benefits fall within the 0–2-year period, administrators continue to hold onto benefits exceeding five years, in violation of statutory requirements.
“Ipec is concerned about the industry’s non-compliance with the Act and the ongoing difficulty in locating members who have unclaimed benefits,” the commission added.
The report also highlights growing dissatisfaction among members. During the first half of 2025, Ipec received 118 complaints, of which 92 were resolved while 26 remained outstanding.
Of these, 25 were complex complaints, with only five resolved, while 93 were non-complex, the majority of which were successfully addressed. Ipec’s report shows that low benefit payouts and unpaid benefits together accounted for 65 percent of all complaints.
“The Commission noted that low benefits paid to members constituted 33 percent of all complaints received, with unpaid benefits following closely at 32 percent,” the report stated.
Other issues included information-related disputes (13 percent), 2009 compensation grievances (11 percent), and minor concerns such as delays in payment or non-remittance of benefits, each accounting for three percent.
A significant portion of unresolved cases stemmed from the non-remittance of contributions by sponsoring employers — a recurring issue that continues to undermine members’ retirement security.
“The commission is actively engaging sponsoring employers to address the issue of unremitted contributions to ensure members receive the support they are entitled to,” Ipec said.
Economic analyst Tinashe Mudzengi, described the findings as a troubling reflection of inefficiencies in pension administration, warning that the growing pool of dormant benefits erodes trust in the system.
“When workers cannot access what they have rightfully earned, confidence collapses. Regulators and administrators must leverage digital tools — from mobile-based verification to data sharing with the registrar’s office — to trace beneficiaries faster,” Mr Mudzengi said.
Pensions expert Ruvimbo Nyamadzawo, stressed the need for strict enforcement of the Estate Administration Act.
“Funds holding unclaimed benefits beyond five years should face penalties. The Guardian Fund exists to protect those entitlements, not for administrators to delay indefinitely,” she argued.
The commission’s findings expose long-standing structural issues in the pensions sector, ranging from data management to contribution remittance. Analysts warn that without digital integration and tighter oversight, the backlog will persist.
Ms Nyamadzawo urged the sector to embrace transparency:
“Publishing unclaimed benefit lists publicly and enabling online claims portals could drastically reduce the backlog. Technology can bridge the gap between administrators and rightful beneficiaries.”
As the regulator tightens its supervision and engages defaulting employers, attention now turns to fund managers’ compliance levels and the fate of thousands of pensioners still waiting to access their savings.
“The pension industry’s credibility rests on timely, transparent benefit payments,” said Ipec. “Every unpaid dollar is a deferred promise to a worker who has already done their part.”
