Pensioners are singing the blues as most employers continue to default on the remission of pension fund despite deducting money from their salaries, a situation that has rendered most employees destitute once they leave employment.
Parastatals and local authorities have been found to be the biggest culprits in the non-remittance of the fund which stood at $600 million dollars as of December.
Local Authorities Pension Fund (LAPF) Board Chairperson, Mrs Elizabeth Gwatipedza said most local authorities are guilty for failure to remit the funds with plans afoot to make pensioners’ lives better.
“When I took over as the new board chair, I discovered that most local authorities were defaulting in remitting the pensions fund. However, we are doing our best to make sure that our members get this fund. One of the problems we are facing is that most of these funds have been eroded,” said Mrs Gwatipedza.
IPEC Director of Pensions, Mr Josphat Kakwere said the pension regulatory authority is crafting a cocktail of measures to ensure that employees enjoy their benefits before retirement.
“We have got issues to do with the current developments where current reforms have brought about unintended effects on the pensions and insurance industry and this has brought into question the relevance of pension fund and loss of value cannot be denied. Therefore the commission has responded by proposing a system where people can get their pension before retirement,” said Mr Kakwere.
Stakeholders are now pinning their hopes on the new Pensions Bill currently being promulgated which is expected to address most of the contentious issues affecting the industry.