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Zimbabwe Seeks To Compensate Pensioners Who Lost Savings During Hyperinflation

1 year agoMon, 23 Oct 2023 15:38:40 GMT
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Zimbabwe Seeks To Compensate Pensioners Who Lost Savings During Hyperinflation

Zimbabwe is seeking help from the retirement industry to compensate pensioners who lost their savings due to hyperinflation and the collapse of the local currency in 2009. The adoption of the US dollar left Zimbabwe dollar-denominated investments worthless, leaving many pensioners in poverty.

Compensating the affected pensioners is crucial for restoring confidence in the retirement industry, Bloomberg reported citing a statement by Grace Muradzikwa, the head of the state regulator, the Insurance and Pensions Commission (IPEC). She said in a statement on Monday:

It is right, fair, proper and desirable for those affected by the loss to receive some compensation from relevant pension funds and insurers and from the state. The industry has the capacity to compensate eligible members to the fullest extent practicable.

The payment plan to compensate pensioners who lost their savings during a period of hyperinflation and currency collapse will cover the nine-year period up to February 2009, specifically focusing on savings held in Zimbabwe dollars. Pension funds and insurers have until the end of the year to submit the total amount owed to eligible pensioners, and payouts are expected to begin in March 2024.

The country’s retirement industry currently holds Z$9.14 trillion ($1.6 billion) in assets, with nearly one million people holding policies. Real estate and equity investments are the main sources of income for the sector, which experienced an 800% stock market rally earlier this year, strengthening its asset base.

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However, concerns have been raised about the compensation framework. Imara Asset Management, the country’s largest independent asset manager, warned that the government’s demand for compensation issued through the IPEC could pose risks to the entire industry. The compensation process seems to exclude the National Social Security Authority (NSSA), the national statutory pension body, which raises questions about the fairness of the process and its potential negative impact on the industry.

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10 Comments

kwadoka bvumazvipere · 1 year ago
ichi chikwata chasara chichizviti Zanu pf chakadhakwa ichi after hondo yerusununguko takatsvaka mabasa tikashanda tichitorerwa penjeni. Zanu ikati ma private sector haasikupa ma penjeni anouta kuti vanhu vawane hugaro hwakanaka after retirement so ngavabatirwe mari ye NSSA tikatombiramba Zanu ikati by ginya. vayida kuwanira mukadzi wavo uya basa wekurakasha mari dze NSSA chirikurwadza ndecheti Mnangagea government irikupa vanhu 50,000 rtgs plus ten, 20 to 30 usd but that is one in a blue moon ndokunge wapiwa usd but mwedzi yavasingakubhadhare usd unopiwa 150,000 rtgs shuwa are these people serious? patirikuti Zanu pf ngayimbobva hatiyisi mhisva guys imbobvai you're a thorn in the flesh
tafman · 1 year ago
hearing this for the uptenth time..we want action. it's long overdue
Citizen · 1 year ago
This gvt is evil evil. Muofumira Prisca lived a luxurious lifestyle thru theft of pension monies whilst the honest beneficiaries became beggars and laughing.stock. Mwari is there, one day is one day.
sad emoji2
tafadzwawongai · 1 year ago
kwese uko
Jim · 1 year ago
what about workers hiring those yrs?
CHAWABVUNZA · 1 year ago
This benefits those who were already pensioners by 2009. You do not have to apply because they know you by the way of montly payouts to individuals. Citizens shall hold their breaths for March 2024 to arrive.. This is my story and I am sticking to it. [ THE.BUSH LAWYER4CCC ].
Anonymous · 1 year ago
Anonymous · 1 year ago
So many of them passed away after working for so many years u decided to steal their money and eat with your friends and relatives used the money to fund zanupf campairns so that you cling to power and loot everything living citizens in deep poverty you are heartless you are not human beings shame to you its so painful .
Unknown · 1 year ago
Ooo zvaramba,, why always include Zanu😂😂😂

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