Termination of loss-making professional pension funds in Zimbabwe

The Insurance and Pension Commission (IPEC) has, in recent 13 months, shut down 224 professional pension funds. The number of these institutions has now gone from 1552 by 31 December 2016 down to 1328 in early February 2018.

IPEC says that its move is accounted for by the financial non-viability of these funds. This situation is likely to be prejudicial to future retirees but the supervisory authority maintains that its decision will enable companies to focus on their primary activities.

Furthermore, IPEC plans on setting up an “umbrella fund” comprising several sub-funds, an initiative designed to optimize investments and reduce contributions exposure to market fluctuations.

More news:

• The insurance industry in Zimbabwe