News / National
Zimdollar pensioners to be compensated
28 Mar 2016 at 10:04hrs | Views
The ministry of Finance is seeking to compensate thousands of policyholders and pensioners who lost their savings in the conversion to US dollars from Zimbabwean currency in 2009.
Finance Minister Patrick Chinamasa has introduced legislation to facilitate the setting up of a commission to look into the unsavoury happenings that resulted in many losing value on their hard earned savings.
"Where it has been established that pension fund members or insurance policyholders have been materially prejudiced, to establish an appropriate basis for compensating such pension fund members or insurance policyholders or beneficiaries of such persons," an excerpt from amendment of proclamation 8 of 2015 says.
The law provides for investigation of the financial soundness of Zimbabwe's insurance and pension industry before and after the conversion the Zimbabwe dollar era to US dollar or multi-currency system.
"If any financial unsoundness is established, to identify the causes thereof, and to establish how the financial soundness of insurance and pensions industry can be resolved," the provisions say, adding failure of regulation, Governance and oversight in running funds and monitoring will also come under scrutiny.
The legislation promulgated last year sought to probe the role pension funds and insurance firms played in the financial prejudice, other than what went wrong, why and how that happened, as Zimbabwe exited the decade long economic tailspin.
Insurance policyholders and pension fund members are feared to have lost significant value when Zimbabwe transitioned to a basket of currencies dominated by the greenback.
Finance Minister Patrick Chinamasa has introduced legislation to facilitate the setting up of a commission to look into the unsavoury happenings that resulted in many losing value on their hard earned savings.
"Where it has been established that pension fund members or insurance policyholders have been materially prejudiced, to establish an appropriate basis for compensating such pension fund members or insurance policyholders or beneficiaries of such persons," an excerpt from amendment of proclamation 8 of 2015 says.
The law provides for investigation of the financial soundness of Zimbabwe's insurance and pension industry before and after the conversion the Zimbabwe dollar era to US dollar or multi-currency system.
"If any financial unsoundness is established, to identify the causes thereof, and to establish how the financial soundness of insurance and pensions industry can be resolved," the provisions say, adding failure of regulation, Governance and oversight in running funds and monitoring will also come under scrutiny.
The legislation promulgated last year sought to probe the role pension funds and insurance firms played in the financial prejudice, other than what went wrong, why and how that happened, as Zimbabwe exited the decade long economic tailspin.
Insurance policyholders and pension fund members are feared to have lost significant value when Zimbabwe transitioned to a basket of currencies dominated by the greenback.
Source - Herald
