The insurance and pensions bills are expected toe out by June as the government moves to implement recommendations of the Justice Smith Commission of Inquiry into the Conversion of Insurance and Pensions values from Zimbabwe dollar to United States (US) dollar.
The inquiry revealed that loss of value in insurance and pension benefits was mainly caused by macro-economic regulatory and institutional factors. The commission recommended reformation of Zimbabwe's legislation around the insurance and pensions sectors as part of initiatives to guard against loss of value and fair compensation after noting serious loss of value.
Regulatory failure on the part of Government and the regulator for insurance and pensions were identified as having caused loss of value. Government was accused of failing to guide the industry during the hyperinflation and currency debasing and during conversion of insurance and pension values when the economy was dollarized from 2009.
The Insurance and Pensions Commission (IPEC) is said to have failed to conduct on-site supervision and investigate its licensees, allowing arbitrary insurance product terminations by insurance companies, poor investment management practices, poor record keeping and failing to deal with predatory administration expenses among other issues, short-changed members.
Amendment of legislation on insurance and pensions, namely Amendment of the Insurance Bill, the Pensions and Provident Funds Bill, and the Insurance and Pensions Commission Bill is expected to cover the identified regulatory gaps, and especially strengthening of IPEC. The Pensions and Provident Fund Bill, in particular, would be expected to foster better corporate governance practices within the industry while adequately providing the legal basis for a troubled entities' resolution framework as well as increasing the commission's enforcement powers.
Finance and Economic Development Minister Mthuli Ncube, has said the bills in this respect should appear before Parliament during the first half of this year.
“The Ministry is seized with legal reforms targeted at the legislation governing insurance and pensions. I understand the Bills took long at drafting stage. However, I wish to give you assurance that all the three Bills will be introduced in Parliament during the first half of this year,” he said.
“The macroeconomic reforms that we are implementing, particularly currency stabilisation, ease of doing business reforms and re-engagement efforts are meant to ensure stability, predictability and growth of the economy. I believe predictability of macroeconomic fundamentals is critical for informing pricing assumptions of insurance products and in guiding objective determination of the present value of future liabilities.”
The Commission was appointed by former President Mugabe and the report of the Commission of Inquiry was gazetted on 5th March 2018 through General Notice Number 149 of 2018. The inquiry was conducted over an 18 month period from September 2015 to March 2017 and covered a 20 year period from 1996 to 2014.
A nine member Commission. Its terms of reference of the Commission mandated the Commission to investigate the following issues among others:
To establish the total value, nature and type of assets owned by insurance companies and pension funds;
To determine the causes of loss of value of insurance and pension benefits;
To assess the conversion methods and processes of insurance and pension assets and liabilities to Unites States dollars;
To establish the extend of prejudice if any to policy holders and pensioners;
To recommend compensation where prejudice has been established and;
To examine instances of regulatory failures and finally;
To assess the soundness of the industry and the role of the insurance and pension sector in the economy.
Commutations of the full pension upon dollarisation, saw a number of occupational pension schemes and NSSA paying once off pension benefit to pensioners upon dollarization, arguing that the amounts were too small to warrant monthly payments. Pensioners were paid commutations as small as a few hundred dollars or one or two thousand in rare cases although lifetime pensions were expected.
A number of pension funds got away with unremitted pension contribution arrears, employers deducted monthly pension contributions from workers' salaries for all their years of service. That included the Mining Industry Pension Fund, the Local Authorities Pension Fund, the National Railways of Zimbabwe Pension Fund, the Unified Council Pension Fund, the ZUPCO Pension Fund, the Cold Storage Company Pension Fund and the Fidelity Printers Pension Fund and some other insurance companies. Consequently, upon retirement, pensioners could not receive their pension benefits from the pension funds.
As at December 2015, cumulative contribution arrears for the post-dollarization period amounted to about US$328, 5 million. Pensioners across all sectors who retired between 2007 and February 2009 lost their pension lump-sums largely due to the adverse impact of hyperinflation which whipped off their balances in banks. Upon demonetization of the Zimbabwe dollar, pensioners only received as little as US$5 as their one third lump-sum benefit.
Lack of transparency on the conversion methods, processes and formulae used by insurance companies and pension funds on the dollarization of the economy in 2009 was cited as one of the causes of loss of value. Most complainants indicated that their pensions were reduced from several hundreds or thousands of dollars to a few United States dollar cents. Some pensioners got as little as US$0,8c in pension cheque sent to them by a life insurance company in 2014 as settlement of a life policy and no explanation was offered on how such a figure was arrived at.
Selling your house for funds and renovating properties for profit can be a very effective method to create income in the housing industry. Still it needs meticulous organization and arrangement. With the right techniques you can increase your prospects of achievement and gain considerable gains. In this article we will explore in thoroughly the actions you should to pursue to offer your home fast for money and flip properties for income. First it is essential to ascertain the marketplace worth of your estate before selling it for money. Realizing its price will aid you establish an suitable requesting cost and formulate knowledgeable decisions throughout the marketing procedure. You can determine your estates sector worth by engaging a professional appraiser contrasting your house to alike residences that have recently sold in your region or using digital assessment instruments like Zillow or Redfin. Once you have determined your homes market price it is crucial to price it properly. Setting a price that is undervalued can lead in financial deficit while valuing it too high may lead to a lengthy marketing procedure. To prevent these issues establish a competitive cost based on the current sector state. Consulting a housing professional for their opinion on the optimal price for your property can also be advantageous. Before marketing your property for funds make necessary repairs and upgrades to enhance its price. Emphasize on areas that will have the most considerable influence such as the culinary space and washrooms. Updating these sections can aid you offer your home quickly as they are essential sections for prospective purchasers. Additionally verify that your home is well-maintained and orderly. A well-kept estate is much attractive to buyers and can help speed up the transaction. Preparing your house can also increase its appeal and turn it much appealing to potential purchasers. This entails decluttering arranging furniture strategically and incorporating ornamental details to generate a inviting and inviting atmosphere. A properly presented house can be a significant selling highlight so it is worth investing time and energy into this task. You might consider engaging a licensed property stager to assist you form the optimal living area for possible buyers. To profitably renovate homes for income securing the right investment is vital. There are several options obtainable such as traditional bank loans private credits and individual loans. Select the investment choice that most suits your demands and financial condition and make sure you have a strong approach for returning the funds and financing your revolving project. Collaborating with the proper specialists is vital for a successful revolving project. This comprises housing professionals builders inspectors and attorney experts. A housing professional can assist you discover the best home and guide you through the acquiring and selling process. Builders can conduct repairs evaluators can examine the estates status and legal advisors can oversee contractual matters. Collaborating with the right specialists can ensure a seamless and profitable flipping undertaking. If you are curious in knowing more about this subject kindly check my preferred page for additional insights and resources. Any time you wish to discover more about your content stop by the web-site: what sells properties fast at Atlanta Georgia and Hampton Georgia 30228 Renovate a Property on a Budget da01a8d
The insurance and pensions bills are expected toe out by June as the government moves to implement recommendations of the Justice Smith Commission of Inquiry into the Conversion of Insurance and Pensions values from Zimbabwe dollar to United States (US) dollar.
The inquiry revealed that loss of value in insurance and pension benefits was mainly caused by macro-economic regulatory and institutional factors. The commission recommended reformation of Zimbabwe's legislation around the insurance and pensions sectors as part of initiatives to guard against loss of value and fair compensation after noting serious loss of value.
Regulatory failure on the part of Government and the regulator for insurance and pensions were identified as having caused loss of value. Government was accused of failing to guide the industry during the hyperinflation and currency debasing and during conversion of insurance and pension values when the economy was dollarized from 2009.
The Insurance and Pensions Commission (IPEC) is said to have failed to conduct on-site supervision and investigate its licensees, allowing arbitrary insurance product terminations by insurance companies, poor investment management practices, poor record keeping and failing to deal with predatory administration expenses among other issues, short-changed members.
Amendment of legislation on insurance and pensions, namely Amendment of the Insurance Bill, the Pensions and Provident Funds Bill, and the Insurance and Pensions Commission Bill is expected to cover the identified regulatory gaps, and especially strengthening of IPEC. The Pensions and Provident Fund Bill, in particular, would be expected to foster better corporate governance practices within the industry while adequately providing the legal basis for a troubled entities' resolution framework as well as increasing the commission's enforcement powers.
Finance and Economic Development Minister Mthuli Ncube, has said the bills in this respect should appear before Parliament during the first half of this year.
“The Ministry is seized with legal reforms targeted at the legislation governing insurance and pensions. I understand the Bills took long at drafting stage. However, I wish to give you assurance that all the three Bills will be introduced in Parliament during the first half of this year,” he said.
“The macroeconomic reforms that we are implementing, particularly currency stabilisation, ease of doing business reforms and re-engagement efforts are meant to ensure stability, predictability and growth of the economy. I believe predictability of macroeconomic fundamentals is critical for informing pricing assumptions of insurance products and in guiding objective determination of the present value of future liabilities.”
The Commission was appointed by former President Mugabe and the report of the Commission of Inquiry was gazetted on 5th March 2018 through General Notice Number 149 of 2018. The inquiry was conducted over an 18 month period from September 2015 to March 2017 and covered a 20 year period from 1996 to 2014.
A nine member Commission. Its terms of reference of the Commission mandated the Commission to investigate the following issues among others:
To establish the total value, nature and type of assets owned by insurance companies and pension funds;
To determine the causes of loss of value of insurance and pension benefits;
To assess the conversion methods and processes of insurance and pension assets and liabilities to Unites States dollars;
To establish the extend of prejudice if any to policy holders and pensioners;
To recommend compensation where prejudice has been established and;
To examine instances of regulatory failures and finally;
To assess the soundness of the industry and the role of the insurance and pension sector in the economy.
Commutations of the full pension upon dollarisation, saw a number of occupational pension schemes and NSSA paying once off pension benefit to pensioners upon dollarization, arguing that the amounts were too small to warrant monthly payments. Pensioners were paid commutations as small as a few hundred dollars or one or two thousand in rare cases although lifetime pensions were expected.
A number of pension funds got away with unremitted pension contribution arrears, employers deducted monthly pension contributions from workers' salaries for all their years of service. That included the Mining Industry Pension Fund, the Local Authorities Pension Fund, the National Railways of Zimbabwe Pension Fund, the Unified Council Pension Fund, the ZUPCO Pension Fund, the Cold Storage Company Pension Fund and the Fidelity Printers Pension Fund and some other insurance companies. Consequently, upon retirement, pensioners could not receive their pension benefits from the pension funds.
As at December 2015, cumulative contribution arrears for the post-dollarization period amounted to about US$328, 5 million. Pensioners across all sectors who retired between 2007 and February 2009 lost their pension lump-sums largely due to the adverse impact of hyperinflation which whipped off their balances in banks. Upon demonetization of the Zimbabwe dollar, pensioners only received as little as US$5 as their one third lump-sum benefit.
Lack of transparency on the conversion methods, processes and formulae used by insurance companies and pension funds on the dollarization of the economy in 2009 was cited as one of the causes of loss of value. Most complainants indicated that their pensions were reduced from several hundreds or thousands of dollars to a few United States dollar cents. Some pensioners got as little as US$0,8c in pension cheque sent to them by a life insurance company in 2014 as settlement of a life policy and no explanation was offered on how such a figure was arrived at.
The insurance and pensions bills are expected toe out by June as the government moves to implement recommendations of the Justice Smith Commission of Inquiry into the Conversion of Insurance and Pensions values from Zimbabwe dollar to United States (US) dollar.
The inquiry revealed that loss of value in insurance and pension benefits was mainly caused by macro-economic regulatory and institutional factors. The commission recommended reformation of Zimbabwe's legislation around the insurance and pensions sectors as part of initiatives to guard against loss of value and fair compensation after noting serious loss of value.
Regulatory failure on the part of Government and the regulator for insurance and pensions were identified as having caused loss of value. Government was accused of failing to guide the industry during the hyperinflation and currency debasing and during conversion of insurance and pension values when the economy was dollarized from 2009.
The Insurance and Pensions Commission (IPEC) is said to have failed to conduct on-site supervision and investigate its licensees, allowing arbitrary insurance product terminations by insurance companies, poor investment management practices, poor record keeping and failing to deal with predatory administration expenses among other issues, short-changed members.
Amendment of legislation on insurance and pensions, namely Amendment of the Insurance Bill, the Pensions and Provident Funds Bill, and the Insurance and Pensions Commission Bill is expected to cover the identified regulatory gaps, and especially strengthening of IPEC. The Pensions and Provident Fund Bill, in particular, would be expected to foster better corporate governance practices within the industry while adequately providing the legal basis for a troubled entities' resolution framework as well as increasing the commission's enforcement powers.
Finance and Economic Development Minister Mthuli Ncube, has said the bills in this respect should appear before Parliament during the first half of this year.
“The Ministry is seized with legal reforms targeted at the legislation governing insurance and pensions. I understand the Bills took long at drafting stage. However, I wish to give you assurance that all the three Bills will be introduced in Parliament during the first half of this year,” he said.
“The macroeconomic reforms that we are implementing, particularly currency stabilisation, ease of doing business reforms and re-engagement efforts are meant to ensure stability, predictability and growth of the economy. I believe predictability of macroeconomic fundamentals is critical for informing pricing assumptions of insurance products and in guiding objective determination of the present value of future liabilities.”
The Commission was appointed by former President Mugabe and the report of the Commission of Inquiry was gazetted on 5th March 2018 through General Notice Number 149 of 2018. The inquiry was conducted over an 18 month period from September 2015 to March 2017 and covered a 20 year period from 1996 to 2014.
A nine member Commission. Its terms of reference of the Commission mandated the Commission to investigate the following issues among others:
To establish the total value, nature and type of assets owned by insurance companies and pension funds;
To determine the causes of loss of value of insurance and pension benefits;
To assess the conversion methods and processes of insurance and pension assets and liabilities to Unites States dollars;
To establish the extend of prejudice if any to policy holders and pensioners;
To recommend compensation where prejudice has been established and;
To examine instances of regulatory failures and finally;
To assess the soundness of the industry and the role of the insurance and pension sector in the economy.
Commutations of the full pension upon dollarisation, saw a number of occupational pension schemes and NSSA paying once off pension benefit to pensioners upon dollarization, arguing that the amounts were too small to warrant monthly payments. Pensioners were paid commutations as small as a few hundred dollars or one or two thousand in rare cases although lifetime pensions were expected.
A number of pension funds got away with unremitted pension contribution arrears, employers deducted monthly pension contributions from workers' salaries for all their years of service. That included the Mining Industry Pension Fund, the Local Authorities Pension Fund, the National Railways of Zimbabwe Pension Fund, the Unified Council Pension Fund, the ZUPCO Pension Fund, the Cold Storage Company Pension Fund and the Fidelity Printers Pension Fund and some other insurance companies. Consequently, upon retirement, pensioners could not receive their pension benefits from the pension funds.
As at December 2015, cumulative contribution arrears for the post-dollarization period amounted to about US$328, 5 million. Pensioners across all sectors who retired between 2007 and February 2009 lost their pension lump-sums largely due to the adverse impact of hyperinflation which whipped off their balances in banks. Upon demonetization of the Zimbabwe dollar, pensioners only received as little as US$5 as their one third lump-sum benefit.
Lack of transparency on the conversion methods, processes and formulae used by insurance companies and pension funds on the dollarization of the economy in 2009 was cited as one of the causes of loss of value. Most complainants indicated that their pensions were reduced from several hundreds or thousands of dollars to a few United States dollar cents. Some pensioners got as little as US$0,8c in pension cheque sent to them by a life insurance company in 2014 as settlement of a life policy and no explanation was offered on how such a figure was arrived at.
GOVERNMENT has unveiled a retrenched employment program which will reskill those exiting their jobs and avail grants to promote better opportunities.
With a lax labour regulatory framework which has seen companies retrenching at will in Zimbabwe, thousands of workers in the country have continued to untimely lose their jobs , forcing many into joblessness induced abject poverty.
But addressing delegates at a conference recently, Senior Employment Officer in the Labour Ministry Vimbai Chiza unveiled the government's plans to curb the scourge.
“We are creating a register where we will compile retrenched details so that we assist them with employment promotion initiatives. As the department of employment our thrust and mandate is for the promotion of full productive employment.
“So we are partnering with other United Nations Organisations to come with projects that will assist the retrenches in order for them to have a sustainable livelihood,” she said.
Chiza said through the initiative, the government would also like to provide training for the retrenched reskilling considering the new changes we have as a result of Covid19 pandemic.
“You may be aware that jobs have changed and there is a need for reskilling. We also have together with the Ministry of Higher and Tertiary Education under the Green Enterprize project. The development of the new curriculum in line with green jobs are some of the areas that we are currently tapping into and providing for the retrenches,” added Chiza.
However, labour market watchers have castigated the initiative, describing it as too ambitious and unachievable as it falls short of making any impact in a nation where more than 90 % of workers are employed in the informal sector.
The insurance and pensions bills are expected toe out by June as the government moves to implement recommendations of the Justice Smith Commission of Inquiry into the Conversion of Insurance and Pensions values from Zimbabwe dollar to United States (US) dollar.
The inquiry revealed that loss of value in insurance and pension benefits was mainly caused by macro-economic regulatory and institutional factors. The commission recommended reformation of Zimbabwe's legislation around the insurance and pensions sectors as part of initiatives to guard against loss of value and fair compensation after noting serious loss of value.
Regulatory failure on the part of Government and the regulator for insurance and pensions were identified as having caused loss of value. Government was accused of failing to guide the industry during the hyperinflation and currency debasing and during conversion of insurance and pension values when the economy was dollarized from 2009.
The Insurance and Pensions Commission (IPEC) is said to have failed to conduct on-site supervision and investigate its licensees, allowing arbitrary insurance product terminations by insurance companies, poor investment management practices, poor record keeping and failing to deal with predatory administration expenses among other issues, short-changed members.
Amendment of legislation on insurance and pensions, namely Amendment of the Insurance Bill, the Pensions and Provident Funds Bill, and the Insurance and Pensions Commission Bill is expected to cover the identified regulatory gaps, and especially strengthening of IPEC. The Pensions and Provident Fund Bill, in particular, would be expected to foster better corporate governance practices within the industry while adequately providing the legal basis for a troubled entities' resolution framework as well as increasing the commission's enforcement powers.
Finance and Economic Development Minister Mthuli Ncube, has said the bills in this respect should appear before Parliament during the first half of this year.
“The Ministry is seized with legal reforms targeted at the legislation governing insurance and pensions. I understand the Bills took long at drafting stage. However, I wish to give you assurance that all the three Bills will be introduced in Parliament during the first half of this year,” he said.
“The macroeconomic reforms that we are implementing, particularly currency stabilisation, ease of doing business reforms and re-engagement efforts are meant to ensure stability, predictability and growth of the economy. I believe predictability of macroeconomic fundamentals is critical for informing pricing assumptions of insurance products and in guiding objective determination of the present value of future liabilities.”
The Commission was appointed by former President Mugabe and the report of the Commission of Inquiry was gazetted on 5th March 2018 through General Notice Number 149 of 2018. The inquiry was conducted over an 18 month period from September 2015 to March 2017 and covered a 20 year period from 1996 to 2014.
A nine member Commission. Its terms of reference of the Commission mandated the Commission to investigate the following issues among others:
Commutations of the full pension upon dollarisation, saw a number of occupational pension schemes and NSSA paying once off pension benefit to pensioners upon dollarization, arguing that the amounts were too small to warrant monthly payments. Pensioners were paid commutations as small as a few hundred dollars or one or two thousand in rare cases although lifetime pensions were expected.
A number of pension funds got away with unremitted pension contribution arrears, employers deducted monthly pension contributions from workers' salaries for all their years of service. That included the Mining Industry Pension Fund, the Local Authorities Pension Fund, the National Railways of Zimbabwe Pension Fund, the Unified Council Pension Fund, the ZUPCO Pension Fund, the Cold Storage Company Pension Fund and the Fidelity Printers Pension Fund and some other insurance companies. Consequently, upon retirement, pensioners could not receive their pension benefits from the pension funds.
As at December 2015, cumulative contribution arrears for the post-dollarization period amounted to about US$328, 5 million. Pensioners across all sectors who retired between 2007 and February 2009 lost their pension lump-sums largely due to the adverse impact of hyperinflation which whipped off their balances in banks. Upon demonetization of the Zimbabwe dollar, pensioners only received as little as US$5 as their one third lump-sum benefit.
Lack of transparency on the conversion methods, processes and formulae used by insurance companies and pension funds on the dollarization of the economy in 2009 was cited as one of the causes of loss of value. Most complainants indicated that their pensions were reduced from several hundreds or thousands of dollars to a few United States dollar cents. Some pensioners got as little as US$0,8c in pension cheque sent to them by a life insurance company in 2014 as settlement of a life policy and no explanation was offered on how such a figure was arrived at.
Selling your house for funds and renovating properties for profit can be a very effective method to create income in the housing industry. Still it needs meticulous organization and arrangement. With the right techniques you can increase your prospects of achievement and gain considerable gains. In this article we will explore in thoroughly the actions you should to pursue to offer your home fast for money and flip properties for income. First it is essential to ascertain the marketplace worth of your estate before selling it for money. Realizing its price will aid you establish an suitable requesting cost and formulate knowledgeable decisions throughout the marketing procedure. You can determine your estates sector worth by engaging a professional appraiser contrasting your house to alike residences that have recently sold in your region or using digital assessment instruments like Zillow or Redfin. Once you have determined your homes market price it is crucial to price it properly. Setting a price that is undervalued can lead in financial deficit while valuing it too high may lead to a lengthy marketing procedure. To prevent these issues establish a competitive cost based on the current sector state. Consulting a housing professional for their opinion on the optimal price for your property can also be advantageous. Before marketing your property for funds make necessary repairs and upgrades to enhance its price. Emphasize on areas that will have the most considerable influence such as the culinary space and washrooms. Updating these sections can aid you offer your home quickly as they are essential sections for prospective purchasers. Additionally verify that your home is well-maintained and orderly. A well-kept estate is much attractive to buyers and can help speed up the transaction. Preparing your house can also increase its appeal and turn it much appealing to potential purchasers. This entails decluttering arranging furniture strategically and incorporating ornamental details to generate a inviting and inviting atmosphere. A properly presented house can be a significant selling highlight so it is worth investing time and energy into this task. You might consider engaging a licensed property stager to assist you form the optimal living area for possible buyers. To profitably renovate homes for income securing the right investment is vital. There are several options obtainable such as traditional bank loans private credits and individual loans. Select the investment choice that most suits your demands and financial condition and make sure you have a strong approach for returning the funds and financing your revolving project. Collaborating with the proper specialists is vital for a successful revolving project. This comprises housing professionals builders inspectors and attorney experts. A housing professional can assist you discover the best home and guide you through the acquiring and selling process. Builders can conduct repairs evaluators can examine the estates status and legal advisors can oversee contractual matters. Collaborating with the right specialists can ensure a seamless and profitable flipping undertaking. If you are curious in knowing more about this subject kindly check my preferred page for additional insights and resources. Any time you wish to discover more about your content stop by the web-site: what sells properties fast at Atlanta Georgia and Hampton Georgia 30228 Renovate a Property on a Budget da01a8d
The insurance and pensions bills are expected toe out by June as the government moves to implement recommendations of the Justice Smith Commission of Inquiry into the Conversion of Insurance and Pensions values from Zimbabwe dollar to United States (US) dollar.
The inquiry revealed that loss of value in insurance and pension benefits was mainly caused by macro-economic regulatory and institutional factors. The commission recommended reformation of Zimbabwe's legislation around the insurance and pensions sectors as part of initiatives to guard against loss of value and fair compensation after noting serious loss of value.
Regulatory failure on the part of Government and the regulator for insurance and pensions were identified as having caused loss of value. Government was accused of failing to guide the industry during the hyperinflation and currency debasing and during conversion of insurance and pension values when the economy was dollarized from 2009.
The Insurance and Pensions Commission (IPEC) is said to have failed to conduct on-site supervision and investigate its licensees, allowing arbitrary insurance product terminations by insurance companies, poor investment management practices, poor record keeping and failing to deal with predatory administration expenses among other issues, short-changed members.
Amendment of legislation on insurance and pensions, namely Amendment of the Insurance Bill, the Pensions and Provident Funds Bill, and the Insurance and Pensions Commission Bill is expected to cover the identified regulatory gaps, and especially strengthening of IPEC. The Pensions and Provident Fund Bill, in particular, would be expected to foster better corporate governance practices within the industry while adequately providing the legal basis for a troubled entities' resolution framework as well as increasing the commission's enforcement powers.
Finance and Economic Development Minister Mthuli Ncube, has said the bills in this respect should appear before Parliament during the first half of this year.
“The Ministry is seized with legal reforms targeted at the legislation governing insurance and pensions. I understand the Bills took long at drafting stage. However, I wish to give you assurance that all the three Bills will be introduced in Parliament during the first half of this year,” he said.
“The macroeconomic reforms that we are implementing, particularly currency stabilisation, ease of doing business reforms and re-engagement efforts are meant to ensure stability, predictability and growth of the economy. I believe predictability of macroeconomic fundamentals is critical for informing pricing assumptions of insurance products and in guiding objective determination of the present value of future liabilities.”
The Commission was appointed by former President Mugabe and the report of the Commission of Inquiry was gazetted on 5th March 2018 through General Notice Number 149 of 2018. The inquiry was conducted over an 18 month period from September 2015 to March 2017 and covered a 20 year period from 1996 to 2014.
A nine member Commission. Its terms of reference of the Commission mandated the Commission to investigate the following issues among others:
Commutations of the full pension upon dollarisation, saw a number of occupational pension schemes and NSSA paying once off pension benefit to pensioners upon dollarization, arguing that the amounts were too small to warrant monthly payments. Pensioners were paid commutations as small as a few hundred dollars or one or two thousand in rare cases although lifetime pensions were expected.
A number of pension funds got away with unremitted pension contribution arrears, employers deducted monthly pension contributions from workers' salaries for all their years of service. That included the Mining Industry Pension Fund, the Local Authorities Pension Fund, the National Railways of Zimbabwe Pension Fund, the Unified Council Pension Fund, the ZUPCO Pension Fund, the Cold Storage Company Pension Fund and the Fidelity Printers Pension Fund and some other insurance companies. Consequently, upon retirement, pensioners could not receive their pension benefits from the pension funds.
As at December 2015, cumulative contribution arrears for the post-dollarization period amounted to about US$328, 5 million. Pensioners across all sectors who retired between 2007 and February 2009 lost their pension lump-sums largely due to the adverse impact of hyperinflation which whipped off their balances in banks. Upon demonetization of the Zimbabwe dollar, pensioners only received as little as US$5 as their one third lump-sum benefit.
Lack of transparency on the conversion methods, processes and formulae used by insurance companies and pension funds on the dollarization of the economy in 2009 was cited as one of the causes of loss of value. Most complainants indicated that their pensions were reduced from several hundreds or thousands of dollars to a few United States dollar cents. Some pensioners got as little as US$0,8c in pension cheque sent to them by a life insurance company in 2014 as settlement of a life policy and no explanation was offered on how such a figure was arrived at.
Bula dinor 000x theworker.co.zw j0
The insurance and pensions bills are expected toe out by June as the government moves to implement recommendations of the Justice Smith Commission of Inquiry into the Conversion of Insurance and Pensions values from Zimbabwe dollar to United States (US) dollar.
The inquiry revealed that loss of value in insurance and pension benefits was mainly caused by macro-economic regulatory and institutional factors. The commission recommended reformation of Zimbabwe's legislation around the insurance and pensions sectors as part of initiatives to guard against loss of value and fair compensation after noting serious loss of value.
Regulatory failure on the part of Government and the regulator for insurance and pensions were identified as having caused loss of value. Government was accused of failing to guide the industry during the hyperinflation and currency debasing and during conversion of insurance and pension values when the economy was dollarized from 2009.
The Insurance and Pensions Commission (IPEC) is said to have failed to conduct on-site supervision and investigate its licensees, allowing arbitrary insurance product terminations by insurance companies, poor investment management practices, poor record keeping and failing to deal with predatory administration expenses among other issues, short-changed members.
Amendment of legislation on insurance and pensions, namely Amendment of the Insurance Bill, the Pensions and Provident Funds Bill, and the Insurance and Pensions Commission Bill is expected to cover the identified regulatory gaps, and especially strengthening of IPEC. The Pensions and Provident Fund Bill, in particular, would be expected to foster better corporate governance practices within the industry while adequately providing the legal basis for a troubled entities' resolution framework as well as increasing the commission's enforcement powers.
Finance and Economic Development Minister Mthuli Ncube, has said the bills in this respect should appear before Parliament during the first half of this year.
“The Ministry is seized with legal reforms targeted at the legislation governing insurance and pensions. I understand the Bills took long at drafting stage. However, I wish to give you assurance that all the three Bills will be introduced in Parliament during the first half of this year,” he said.
“The macroeconomic reforms that we are implementing, particularly currency stabilisation, ease of doing business reforms and re-engagement efforts are meant to ensure stability, predictability and growth of the economy. I believe predictability of macroeconomic fundamentals is critical for informing pricing assumptions of insurance products and in guiding objective determination of the present value of future liabilities.”
The Commission was appointed by former President Mugabe and the report of the Commission of Inquiry was gazetted on 5th March 2018 through General Notice Number 149 of 2018. The inquiry was conducted over an 18 month period from September 2015 to March 2017 and covered a 20 year period from 1996 to 2014.
A nine member Commission. Its terms of reference of the Commission mandated the Commission to investigate the following issues among others:
Commutations of the full pension upon dollarisation, saw a number of occupational pension schemes and NSSA paying once off pension benefit to pensioners upon dollarization, arguing that the amounts were too small to warrant monthly payments. Pensioners were paid commutations as small as a few hundred dollars or one or two thousand in rare cases although lifetime pensions were expected.
A number of pension funds got away with unremitted pension contribution arrears, employers deducted monthly pension contributions from workers' salaries for all their years of service. That included the Mining Industry Pension Fund, the Local Authorities Pension Fund, the National Railways of Zimbabwe Pension Fund, the Unified Council Pension Fund, the ZUPCO Pension Fund, the Cold Storage Company Pension Fund and the Fidelity Printers Pension Fund and some other insurance companies. Consequently, upon retirement, pensioners could not receive their pension benefits from the pension funds.
As at December 2015, cumulative contribution arrears for the post-dollarization period amounted to about US$328, 5 million. Pensioners across all sectors who retired between 2007 and February 2009 lost their pension lump-sums largely due to the adverse impact of hyperinflation which whipped off their balances in banks. Upon demonetization of the Zimbabwe dollar, pensioners only received as little as US$5 as their one third lump-sum benefit.
Lack of transparency on the conversion methods, processes and formulae used by insurance companies and pension funds on the dollarization of the economy in 2009 was cited as one of the causes of loss of value. Most complainants indicated that their pensions were reduced from several hundreds or thousands of dollars to a few United States dollar cents. Some pensioners got as little as US$0,8c in pension cheque sent to them by a life insurance company in 2014 as settlement of a life policy and no explanation was offered on how such a figure was arrived at.
Bula dinor 000x theworker.co.zw j0
By Own Correspondent
GOVERNMENT has unveiled a retrenched employment program which will reskill those exiting their jobs and avail grants to promote better opportunities.
With a lax labour regulatory framework which has seen companies retrenching at will in Zimbabwe, thousands of workers in the country have continued to untimely lose their jobs , forcing many into joblessness induced abject poverty.
But addressing delegates at a conference recently, Senior Employment Officer in the Labour Ministry Vimbai Chiza unveiled the government's plans to curb the scourge.
“We are creating a register where we will compile retrenched details so that we assist them with employment promotion initiatives. As the department of employment our thrust and mandate is for the promotion of full productive employment.
“So we are partnering with other United Nations Organisations to come with projects that will assist the retrenches in order for them to have a sustainable livelihood,” she said.
Chiza said through the initiative, the government would also like to provide training for the retrenched reskilling considering the new changes we have as a result of Covid19 pandemic.
“You may be aware that jobs have changed and there is a need for reskilling. We also have together with the Ministry of Higher and Tertiary Education under the Green Enterprize project. The development of the new curriculum in line with green jobs are some of the areas that we are currently tapping into and providing for the retrenches,” added Chiza.
However, labour market watchers have castigated the initiative, describing it as too ambitious and unachievable as it falls short of making any impact in a nation where more than 90 % of workers are employed in the informal sector.
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