Story by Yolanda Moyo
THE Insurance and Pensions Commission ( IPEC) says Statutory Instrument 162 of 2023, which addresses pre-2009 compensation payments for private sector pensioners who lost value of their savings due to hyperinflation, is almost complete.
The Commission says this will pave way for payouts for the loss of value to pensions.
Thousands of pensioners saw the value of their savings wiped out during Zimbabwe’s hyperinflation period, and IPEC says the long-running process to address the losses is now entering its final stages.
Amendments to Statutory Instrument 162 of 2023, which stalled the process due to crippling implementation challenges, are sitting at the Attorney General’s office and are expected to be gazetted, says IPEC.
IPEC Director of Pensions, Mr Cuthbert Munjoma, said the commission has already engaged industry stakeholders and recommended amendments aimed at resolving the bottlenecks that delayed implementation.
“The issue of pre-2009 compensation updates has taken long mainly because of implementation challenges relating to SI 162 of 2023. We engaged the industry and recommended amendments to the statutory instrument, which are now pending gazetting. We believe the amendments can be gazetted anytime soon, given the progress that has been made on other instruments that were also before the Attorney General’s Office.
“The call now is for us to be ready to disburse. Government has also assured us that it is prepared to make its contribution. We do not want the amendments gazetted and then begin requesting more time for calculations and other processes. We believe we can finally bring closure to this matter, which is very important in restoring confidence in the pensions sector.”
For the government, the stakes extend far beyond settling historical claims. On an international stage, this is a litmus test for Zimbabwe’s financial reforms.
By closing this chapter, government aims to ensure that formal retirement savings are safe, viable, and worth investing in once again.
Deputy Minister of Finance, Economic Development and Investment Promotion, Honourable Kudakwashe Mnangagwa, said restoring confidence in retirement savings remains a key priority.
“What is important is restoring confidence within the pensions sector. When pension contributions begin to decline, it often reflects uncertainty and hesitation among contributors. Addressing the pre-2009 compensation framework is central to rebuilding trust in the system.
“Once people are confident that their savings will still have value when they retire, confidence in the sector naturally improves. We are also looking at the future by putting systems in place that secure retirement savings and strengthen the sector for generations to come,” he said.
If executed seamlessly, the compensation plan will do more than just right a historic wrong. It stands to mark a definitive turning point for Zimbabwe’s financial markets, offering a blueprint for economic recovery, restitution for its elders, and a solid foundation of hope for the country’s economic future.
