Recently the Insurance and Pensions Commission of Zimbabwe (IPEC) named and shamed about 50 companies whom they accused of being some of the biggest defaulters when it comes to making compulsory pension contributions. This is despite the fact that these companies are still deducting these contributions from their employee’s salaries at the end of each month. What is rather shocking is the list of offenders that includes some of the country’s well-known brands that, on paper at least, seem to be doing well.
IPEC has noted with concern, the continued failure by some sponsoring employers to remit pension contributions to their respective pension funds, to the detriment of pension scheme members, who end up receiving reduced or no benefis, when they become due.
IPEC has been receiving complaints from pension scheme members who have received reduced or no benefits woing to failure by their sponsoring employers to remit pension contributions after deducting the same.
As already said, the culprits include some of the well known and seemingly best-performing brands. They include a mix of privately-owned entities as well as some of the country’s well-known parastatals. Among the defaulters are:
- ZIMRA-now this is the most surprising member of this group. These guys have been supposedly exceeding their revenue collection targets each year.
- OK Zimbabwe
- FBC Holdings
- ZESA Holdings and its various subsidiaries
- National Railways of Zimbabwe
- Hwange Colliery Company
- Bulawayo, Chitungwiza and Harare City Councils
- Diamond Miner
- Civil Aviation Authority of Zimbabwe
- Grain Marketing Board
- Simbisa Brands
- National Food Limited
Now that is quite the list which begs the question what is going on? Could it be the tough operating environment? No doubt we will eventually learn the course. In the meantime, lots of pension funds are at risk. This comes at a time when the ordinary member of the economy is struggling.