IPEC in headache over ZW$7, 24 billion unclaimed pensions – NewZimbabwe.com

By Alois Vinga

THE Insurance and Pensions Commission (IPEC) is in a quandary, with over a total ZW$7, 24 billion unclaimed pensions prompting considerations to offload part of the amount to the Guardian Fund.

Latest data from the regulator shows that the unclaimed amount has recorded significant growth in the comparative period.

“Total unclaimed benefits as of 31 December 2022 amounted to ZW$7.24 billion compared to ZW$2.97 billion reported in a similar year, representing an increase of 144%.

“Whilst there has been an increase in the nominal value of unclaimed benefits, membership for unclaimed benefits declined from 151,253 to 111,542 attributed to the transfer of some unclaimed benefits to the Guardian Fund,” said IPEC.

All amounts of monies whose owners are not locatable by any firm operating in Zimbabwe are expected to be deposited into the Guardian’s Fund which is manned by the Master of High Court.

The insurance regulator also revealed that from the total unclaimed so far over 59% of the benefits are above five years and qualify to be given to the Guardian Fund.

“Pension funds are urged to transfer for them to comply with the legal requirements. For the period under review, there was a slight upward movement in membership with a 0.03% increase and a total of 10639 total members,” said IPEC.

The unclaimed benefits constitute 9, 44% of the total unclaimed with an outstanding balance of ZW$1,03 billion.

Unclaimed benefits above five years constitute 32% of the outstanding balance.

However, IPEC raised concerns that transfer of funds among the firms to Guardian Funds is still very low and the Commission urged all entities to comply.

“The membership of unclaimed benefits reduced by 31% due to reclassification by Comarton after issuance of Circular 28 of 2022. Self-administered funds constituted 30% of the monetary value in terms of the total unclaimed benefits of the industry,” added IPEC.