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The National Railways of Zimbabwe (NRZ) and some local authorities have been named among a list 50 defaulting employers who owe the Insurance and Pensions Commission (IPEC) in excess of ZWL$5.3 billion in unremitted pensions.
Their failure to comply with the labour based statutory requirement has seen some of the institutions’ employees receiving little or no pension benefits when they become due.
According to IPEC, the NRZ tops the list with ZWL$668 961, 624.73 followed by Harare City Council at ZW$545 479 373.19.
Zimbabwe Consolidated Diamond Company, Gweru City Council, RioZim and Zimbabwe Revenue Authority make the top 10 defaulters.
Other defaulters include Chitungwiza Municipality, Zimbabwe Platinum Mine, Simbisa Brands, Innscor Africa, OK Zimbabwe, Mazowe Mine, Kwekwe Municipality and the Civil Aviation Authority of Zimbabwe.
The list of defaulters is denominated by municipalities and mining companies.
IPEC said it has been receiving complaints from pension scheme members who have received reduced or no benefits owing to failure by their sponsoring employers to remit pension contributions after deducting the same.
“Pension contribution arrears stood at about ZW$5.3 billion as at 31 March 2022.
“IPEC calls upon trustees of the affected pension funds to put measures in place to ensure the said employers remit outstanding contributions for the benefit of their pension scheme members.
“In addition, labour organisations are urged to engage the employers who are not remitting pension contributions for the purposes of protecting members against old age poverty,” said the Commission.
According to IPEC, defaulting on pension contributions is a criminal offence.
“Employers that deduct pension contributions, are required in terms of section 2 (a) of Statutory Instrument 61 of 2014 to pay contributions into the pension fund within fourteen (14) days from the end of the calendar month to which they refer,” it said. ZimLive
