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372 pension funds face closure
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More than 370 of Zimbabwe's occupational pension funds were awaiting dissolution at the end of 2025, according to the Insurance and Pensions Commission (Ipec) report for the nine months ended September 30, 2025.
The report paints a sombre picture of the local pensions sector, with more than half of registered occupational pension funds currently inactive. Analysts warn that this situation threatens the future retirement benefits of thousands of employees.
As of September 30, 2025, Zimbabwe had 968 registered occupational pension funds, unchanged from June 30, 2025. Out of these, 479 (49.5%) were active, while 489 (50.5%) were inactive. Among the inactive funds, 372 (76%) were awaiting dissolution.
The report also confirmed the deregistration of pension funds belonging to the National AIDS Council, Trust Holdings, the Zimbabwe Broadcasting Corporation, and the Zimbabwe Energy Regulatory Authority. Deregistration occurs when a fund ceases operations and formally cancels its registration. Ipec noted that even inactive funds must continue reporting until the dissolution process is complete, which is governed by the Pension and Provident Funds Act.
Ipec reminded sponsors and administrators that all pension schemes must hold valid registration certificates before commencing operations or remitting contributions, and that all funds must be reported on regardless of their status.
Despite the high number of dormant funds, the report highlighted resilience among active schemes. Total pension contributions for the quarter rose sharply to US$225.89 million, up from US$148.35 million in the same period last year. Unpaid employer contributions declined by 9%, signalling improved compliance among functioning funds.
Total membership, including beneficiaries, increased by 17% from one million to 1.2 million. This growth was partly driven by the reinstatement of 178,988 dormant members under the Construction Industry Pension Fund and 6,582 new entrants across the sector.
Zimbabwe's pensions sector has faced long-standing challenges, including hyperinflation, currency instability, and economic volatility over the past two decades, placing severe pressure on retirement savings and complicating long-term sustainability.
Ipec's findings underscore the urgent need for oversight and restructuring to protect employees' retirement benefits and strengthen the country's pension system.
The report paints a sombre picture of the local pensions sector, with more than half of registered occupational pension funds currently inactive. Analysts warn that this situation threatens the future retirement benefits of thousands of employees.
As of September 30, 2025, Zimbabwe had 968 registered occupational pension funds, unchanged from June 30, 2025. Out of these, 479 (49.5%) were active, while 489 (50.5%) were inactive. Among the inactive funds, 372 (76%) were awaiting dissolution.
The report also confirmed the deregistration of pension funds belonging to the National AIDS Council, Trust Holdings, the Zimbabwe Broadcasting Corporation, and the Zimbabwe Energy Regulatory Authority. Deregistration occurs when a fund ceases operations and formally cancels its registration. Ipec noted that even inactive funds must continue reporting until the dissolution process is complete, which is governed by the Pension and Provident Funds Act.
Ipec reminded sponsors and administrators that all pension schemes must hold valid registration certificates before commencing operations or remitting contributions, and that all funds must be reported on regardless of their status.
Despite the high number of dormant funds, the report highlighted resilience among active schemes. Total pension contributions for the quarter rose sharply to US$225.89 million, up from US$148.35 million in the same period last year. Unpaid employer contributions declined by 9%, signalling improved compliance among functioning funds.
Total membership, including beneficiaries, increased by 17% from one million to 1.2 million. This growth was partly driven by the reinstatement of 178,988 dormant members under the Construction Industry Pension Fund and 6,582 new entrants across the sector.
Zimbabwe's pensions sector has faced long-standing challenges, including hyperinflation, currency instability, and economic volatility over the past two decades, placing severe pressure on retirement savings and complicating long-term sustainability.
Ipec's findings underscore the urgent need for oversight and restructuring to protect employees' retirement benefits and strengthen the country's pension system.
Source - The Independent
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