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Zimbabwe allocates US$25 million to compensate civil servants
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The Zimbabwean government has earmarked US$25 million to compensate civil servants for pension losses incurred before 2009 due to the country's period of hyperinflation. This move follows recommendations by the Justice Leslie Smith Commission of Inquiry, which was tasked with investigating pension underpayments and urged a reconsideration of the compensation issue.
Finance Minister Mthuli Ncube reaffirmed the government's commitment to redressing the erosion of pension values and announced that, to date, 35,538 government beneficiaries have received compensation from the allocated funds.
In addition, the Insurance and Pensions Commission (IPEC) has approved two private compensation schemes, resulting in nearly US$500,000 being disbursed to eligible pensioners. However, progress in approving these schemes has been slower than anticipated due to several challenges, including data gaps in pension funds and insurers, complexities for life insurance companies in separating assets between shareholders and policyholders, and significant funding shortfalls in some pension funds.
To tackle these obstacles and accelerate the compensation process, the government is revising the Pre-2009 Compensation Regulations, initially published as Statutory Instrument 162 of 2023.
Meanwhile, the insurance sector has shown growth, with total assets rising by 12% to ZiG27.6 billion as of March 31, 2025. This increase was mainly driven by life insurers and reinsurers.
The pensions industry currently registers 967 pension funds, a modest increase from the previous year, with 479 active funds and 488 inactive funds slated for dissolution. Membership in pension funds grew by 1.2%, reaching a total of 990,801 members as of the end of March 2025.
The government's continued efforts to compensate pensioners and strengthen the pensions sector mark a significant step toward restoring confidence in retirement benefits and supporting the welfare of Zimbabwe's civil service retirees.
Finance Minister Mthuli Ncube reaffirmed the government's commitment to redressing the erosion of pension values and announced that, to date, 35,538 government beneficiaries have received compensation from the allocated funds.
In addition, the Insurance and Pensions Commission (IPEC) has approved two private compensation schemes, resulting in nearly US$500,000 being disbursed to eligible pensioners. However, progress in approving these schemes has been slower than anticipated due to several challenges, including data gaps in pension funds and insurers, complexities for life insurance companies in separating assets between shareholders and policyholders, and significant funding shortfalls in some pension funds.
To tackle these obstacles and accelerate the compensation process, the government is revising the Pre-2009 Compensation Regulations, initially published as Statutory Instrument 162 of 2023.
Meanwhile, the insurance sector has shown growth, with total assets rising by 12% to ZiG27.6 billion as of March 31, 2025. This increase was mainly driven by life insurers and reinsurers.
The pensions industry currently registers 967 pension funds, a modest increase from the previous year, with 479 active funds and 488 inactive funds slated for dissolution. Membership in pension funds grew by 1.2%, reaching a total of 990,801 members as of the end of March 2025.
The government's continued efforts to compensate pensioners and strengthen the pensions sector mark a significant step toward restoring confidence in retirement benefits and supporting the welfare of Zimbabwe's civil service retirees.
Source - NewZimbabwe
