Government has gazetted the State Service Pension Fund Bill which establishes a fund to ensure members enjoy a decent standard of living in their retirement through provision of pensions, gratuities and other benefits.
This comes as the State seeks to boost financial and social security for eligible retired civil servants.
At present, retired civil servants receive the bulk of their pension through a pay-as-you-go scheme.
This comes as the Government has also invoked the Labour Act to prescribe a minimum retrenchment package on which an employer can pay should he or she decides to retrench as the State seeks to protect employees from unscrupulous employers who might seek to exploit workers.
The State Service Pension Fund Bill, which has been on the cards for some time, now waits to be tabled before Parliament for debate and is expected to pass with or without some amendments.
The new pension fund will be building up assets, allowing pensions to be paid out of income and interest from these assets and thus assuring State pensioners of their money, regardless of the state, at any particular time, of Government finances.
The creation of the Fund is also in line with the International Labour Organization's promulgation on social security providing for minimum standards.
One of the objectives of the Bill is to provide for payment of pensions, gratuities and other benefits to State employees on retirement, discharge, resignation, death or other termination of service.
The Bill establishes a State Service Pension Fund, whose object is to provide money for the payment of pension benefits to members, former members and their dependants, as and when they become due and payable.
"The Fund shall consist of contributions by members and the State, and, all sums arising from the investment of moneys in the Fund, and any other sums that may vest in or accrue to the Fund, whether in terms of this Act or otherwise," reads the Bill.
All contributions shall cease to be part of the Consolidated Revenue Fund to form part of the Fund once the Bill becomes law.
Clause 22 of the Bill protects pension benefits from being assigned, transferred, ceded, or from being pledged or hypothecated, or from being attached or be subject to any form of execution under a judgement or order of a court.
Pension of a member does not form part of his or her estate where such member's estate is liquidated.
Clause 24 provides for the protection and continuance of pension where a member is imprisoned, such that pension may still be paid during imprisonment to the pensioner or to the benefit of any spouse, child or dependant.
Clause 25 provides for the suspension or reduction of a pension benefit where a member is convicted of theft or misappropriation of state property or any misconduct involving fraud or financial prejudice to the State.
The Bill also provides that where a member has been discharged or dismissed from State employment on the ground of misconduct, the Board may authorise the deduction from any pension benefit payable to him or her of an amount equal to any direct loss which the State sustained as a result of that misconduct.
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In a related matter, Public Service Labour and Social Welfare Minister July Moyo has fixed a one month's salary for every year served as minimum compensation for loss of employment when a firm decides to retrench.
This was announced in a Statutory Instrument of a Government Gazette published last Friday.
"Unless better terms are negotiated and agreed between the employer and the employee or employees concerned or their representatives, a minimum retrenchment package of one month's salary or wages for every year of service as an employee or the equivalent, lesser proportion of (one month's salary or wages for a lesser period of service) shall be paid as compensation for loss of employment," reads the Statutory Instrument.
