Relief for pensioners as IPEC invests in mining firm

By Tendai Munengwa

THE government has invested pension funds in a local mining conglomerate as part of efforts to preserve the value of pensioners’ contributions.

Under the new arrangement, part of the contributions have been used to acquire a stake in Kuvimba Group of Companies.

Insurance Pensioners Commission (IPEC) Commissioner, Dr Grace Mudzingwa said the institution has already received the first dividend from the Mining House and struck an agreement with a local bank, a development which is now benefiting some pensioners in United States dollars.

“Through the first dividend from Kuvimba of US$400 000, we have identified the least paid pensioners who were getting about ZWL1000 and we allocated them US$100 to ensure they are cushioned from inflation,” she said.

Dr Muradzikwa says a strategic framework has also been crafted to give guidance for the pensions’ Board of Trustees to institute mechanisms to ensure the value of contributions is not eroded by inflationary pressures.

“We have also come up with a guidance framework to train the Board of Trustees to be capable of dealing with inflation. We are saying the Board of Trustees should be professional enough to invest funds in strategic assets which will ensure that pensioners’ funds are protected from inflation,” she added.

More than one million pensioners are currently on the pensioners’ list and IPEC is working on modalities to ensure that their funds are invested in a manner that preserves the value of their
contributions.