Govt Sets Three-Year Deadline To Compensate Pre-2009 Pensioners

The Zimbabwean government has pledged to complete compensation for pensioners who lost the value of their savings before 2009.

Finance Minister Professor Mthuli Ncube confirmed that payouts will be finalised within three years, following proposed amendments to Statutory Instrument 162 of 2023, which governs the compensation framework.

The Second Republic, under President Emmerson Mnangagwa, is spearheading the initiative as part of efforts to address legacy economic injustices stemming from the hyperinflation era.

Zimbabwe demonetised its local currency in 2009 after runaway inflation rendered it worthless, leaving many pensioners with severely devalued benefits.

The compensation programme is anchored on findings from the Justice Smith Commission of Inquiry, which concluded that pensioners and policyholders were prejudiced during the 2009 transition to a US dollar-based multi-currency system.

The commission recommended compensation, leading to the gazetting of SI 162 of 2023 to guide the process.

Speaking at the Insurance and Pensions Commission (IPEC) Annual General Meeting in Harare, Prof Ncube—through a speech delivered by Finance Ministry director Mr Kudakwashe Zata stressed the urgency of resolving the matter.

“There is a need to bring closure to the issue of 2009 compensation, which is overdue. The Government has already commenced paying its pensioners and is committed to bringing the issue to finality within the next three years,” he said.

He urged IPEC to ensure the industry treats the matter with urgency, adding that Treasury is “decisively dealing with the matter” and actively pursuing amendments to SI 162 to operationalise the compensation process.

The 2025 National Budget has also prioritised the resolution of pre-2009 pension claims, alongside broader reforms to the national pension system.

Although initial payments were scheduled for March 2024, delays arose due to non-compliance with SI 162 provisions and data verification challenges.

IPEC Commissioner Dr Grace Muradzikwa reported that two pension funds have had their compensation frameworks approved, resulting in the disbursement of US$522,000 out of an approved US$750,000.

She acknowledged that earlier delays were linked to difficulties in accessing granular data and separating assets during investigations.

“Now we have come up with a number of interventions so that we can close this. Instead of insisting on granular data and proof of asset separation, we are now using financial statements,” Dr Muradzikwa said.

She also announced a once-off shareholder levy to fund the compensation, with proposed minimum and maximum payout thresholds to ensure fairness.

“Compensation is not restitution. It is impossible to compensate pensioners for what they lost, but we will definitely make sure they get something toward the loss they experienced,” she said.

The Herald reported that the government, IPEC, and the Attorney-General’s Office are working in tandem to amend SI 162 and unlock further disbursements.

Dr Muradzikwa said the industry is fully committed to finalising the compensation process and called on all stakeholders to support the initiative.

She noted that the pensions industry’s penetration rate remains low—around 2 percent—but said there is room for growth if insurers develop modern, relevant products.

“We are challenging the industry to rethink their offerings. In fact, for the Life Assurance industry, we have actually recalled some of the products,” said Dr Muradzikwa.

Prof Ncube, meanwhile, said the government is finalising a five-year Financial Sector Development Plan and expects the insurance and pensions sector to play a key role in climate-proofing agriculture.

He encouraged investment in smallholder farmer insurance, irrigation infrastructure, and renewable energy.

“Treasury is ready to grant prescribed asset status to public and private sector investments, provided they align with financial development strategies and create value for policyholders,” he said.

With institutional alignment, regulatory reform, and renewed urgency, authorities are optimistic that long-overdue redress for pre-2009 pensioners is finally within reach.