School Heads Demand USD Pensions For Retirees

The Zimbabwe National Union of School Heads (ZINUSH) has demanded that the Government should pay retired school heads’ pensions in United States dollars, instead of in “useless” Zimbabwe dollars.

In a statement, ZINUSH secretary-general Munyaradzi Majoni said retired school heads are wallowing in poverty even though they once made their pension contributions in hard currency. Said Majoni:

We noted that this problem was caused by the model where salaries were in RTGS and only allowances were paid in US dollars and we sent our recommendation to the employer lobbying for the dumping of payment of salaries in RTGS (Zimdollars).

We raised concerns about why our retiring members were getting retirement packages in useless RTGS terms even though these members once made their pension contributions in hard currency.

Majoni said teachers were demanding an urgent review of the pensions to ensure pensioners live dignified lives. He said:

Our recommendation, as was espoused in our May Day statement to the employer, was that we start with converting the US dollar allowance to a salary so that pension emoluments could be in a more stable currency.

The Minister of Finance, Economic Development and Investment Promotion, Mthuli Ncube, announced in his 2024 budget statement that United States dollar allowances for civil servants will now be taxed to ensure they receive part of their pension in foreign currency.

Majoni acknowledged the development but said it was a case of too little too late. He said:

However, we take this as a case of too little too late. In the shortest possible time, our salaries and allowances must be entirely in hard currency so that we get value for our hard labour.

When contacted for comment by NewsDay, Public Service Labour and Social Welfare permanent secretary Simon Masanga noted the concerns of the teachers. He said:

It is a PSC [Public Service Commission] issue. They house the government pension fund.

According to the PSC, a member may retire from service upon reaching the pensionable age of 65 years. Upon retirement, a member is entitled to a lump sum payment and a monthly pension calculated based on his or her pensionable emoluments and service of at least 10 years.

It also says a member may retire from service upon or after having attained the age of 55 years. Upon retirement, a member is entitled to a lump sum payment and a monthly pension calculated the same way as for normal retirement.

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