HAVING grown up in the rural community of Chiriseri in Bindura South, Backdoor Mhunza says he witnessed the disgusting twist of circumstances which can ensue one in his old age due to reduced incomes.
From experience, Mhunza could tell how chronic diseases may end up escalating among the aged who find themselves helpless and struggling to meet their basic needs, let alone paying for their medical treatment.
Such childhood lessons left lasting impressions and since primary school Mhunza vowed that the moment he is going to secure a job he would subscribe to a pension fund through his employer to save his life from the catastrophic realities which come with old age.
Unfortunately, a few months before going on retirement, Mhunza recently learnt with shock that despite his employer at a local firm deducting pension contributions from his salary in the last five years, nothing was remitted to the respective pension fund for reinvestment.
As he forecasts the days which lie ahead post retirement, the hardworking brick layer will not be any different from several rural folks who never caught the sight of a pay slip back in Chiriseri.
Such are the circumstances confronting millions of Zimbabwe's workers exposed to escalating dishonesty which has seen the working class enduring a modern form of 'capitalistic heist' despite years of hard work.
Insurance and Pensions Commission's (IPEC) Director Pensions and Life Assurance, Cuthbert Munjoma
What is further heart- wrenching for the working class in this Southern Africa nation is that the majority last enjoyed a decent and deserving salary back in the 1990s and the reality of going on retirement empty handed becomes a double blow.
Insurance and Pensions Commission's (IPEC) Director Pensions and Life Assurance, Cuthbert Munjoma told NewZimbabwe.com recently that companies are owing pension funds a huge fortune.
"As at 31 March 2023, contributions arrears stood at about ZW$47 billion.
"In the event that a pension fund received some contributions, and the benefits are due to be paid to the fund member or his/her beneficiaries, the fund is expected to pay the benefits as informed by the contributions received plus some investment return. Only the arrears are not paid," he said.
The explanation makes it clearer that even if the company pays the arrears on the last minute, pensioners will not be able to enjoy a fully invested pay-out.
"Our analysis shows that in some circumstances, sponsoring employers' are even failing to pay monthly salaries while in some circumstances there is just reluctance by other employers who have the capacity to pay contributions but are not doing so for reasons best known to themselves," explained Munjoma.
Non-remittance of pension dues is a direct contravention of Section 16 of the Pensions Act which stipulates that, "any participating employer who fails to remit contributions within fourteen days after the end of the month in respect of which the contribution is payable, shall be guilty of an offence and liable to a category 1 civil penalty."
Among other provisions, the Pensions Act also empowers the IPEC Commissioner to garnish a bank account of a sponsoring employer in favour of the owed pension fund.
The Zimbabwe Congress of Trade Unions (ZCTU) Secretary General, Japhet Moyo dismissed the defence that some employers are experiencing hardships amid calls for stern measures to be instituted against errant employers.
"What continues to worry us as labour is the realization that despite underpayment of workers and non-remittance of pension dues in the last years, the standard of living for many company executives remain unchanged.
"They still afford to drive the top range vehicles. Their kids are still enrolled at private schools but workers continue to be marginalized left right and center," he said.
The labour union leader said enforcement mechanisms should be tightened alongside streamlining of process to expeditiously prosecute the offending companies as a strategy to curb the opaque problem among other mechanisms.
Employers' Confederation of Zimbabwe (EMCOZ) executive director, Nester Mukwewa said the employers group does not condone such conduct by errant employers hinting on the need for stern measures to be applied.
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"Once deducted we encourage employers to remit. We do not condone the non -remittance," she said.
On the part its part, IPEC said a raft of measures are being employed to deal with the problem which among others include; educating the boards of funds on the importance of checking whether contributions are being remitted and the legal provisions they can institute where there are contribution arrears and engaging parent ministries of parastatals in contribution arrears to make good the arrears.
"IPEC has also been engaging labour and employers sensitizing them on the importance of remitting pension contributions and the opportunity cost for non-remittance or delayed remittance of contributions."
The Commission is disclosing defaulting sponsoring employers through public notices, which helps fund members to know that their sponsoring employers are not remitting pension contributions. This will help fund members and their boards of trustees to take measures against such undesirable conduct.
