IPEC’s tough stance, a plausible, long-overdue intervention to rescue the sector

The warning signs have been glaring for years.

Zimbabwe’s pensions sector has been hurtling towards collapse, crippled by rampant corporate delinquency, regulatory defiance, and, in some cases, outright theft.

With pension contribution arrears now surging to a staggering US$93 m, the sector is teetering on the edge of disaster.

The livelihoods and retirement security of thousands hang in the balance.

This week, however, the Insurance and Pensions Commission (IPEC) has taken a bold, plausible, and long-overdue step to rescue the sector from the abyss.

The regulator’s announcement that it will garnish bank accounts and seize assets from employers who fail to remit pension contributions is not only necessary — it represents the last credible opportunity to salvage workers’ retirement savings and restore public confidence.

The numbers paint a bleak picture. According to IPEC, pension arrears ballooned by 37%, climbing from US$68 m at the end of 2024 to US$93 m as of March 31, 2025. Behind those figures are thousands of workers staring down a grim future — stripped of pensions, denied death benefits, and robbed of payouts they dutifully contributed towards.

This crisis is not the result of clerical errors or administrative oversight.

It is the product of deliberate, calculated non-compliance. Companies continue to deduct pension contributions from employees but illegally divert the funds to prop up their cash flows or cover operational shortfalls. In simple terms, they are stealing from their employees.

This is precisely why IPEC’s hardline enforcement is the only plausible route to avert a sector-wide collapse.

As Commissioner Dr. Grace Muradzikwa has made abundantly clear, the era of softly worded warnings is over.

Backed by its board and government support, IPEC will flex its legal authority to garnish accounts, seize assets, and hold delinquent employers to account.

Some may argue that this approach is harsh. But the reality is stark — there is no alternative. The pensions sector is already hanging by a thread.

Years of underfunding, non-compliance, and mismanagement have shattered trust. Workers no longer believe their contributions are safe.

Pension funds are strained. The social safety net for retirees and bereaved families is rapidly eroding.

Allow this crisis to fester, and the consequences will be catastrophic. More workers will retire into poverty. Bereaved families will be left destitute. The entire pensions framework — already fragile — could implode, with dire economic and social consequences.

The legal framework could not be clearer. Under the Pensions and Provident Funds Act [Chapter 24:32], Statutory Instrument 61 of 2014, and SI 323 of 1991, employers are legally mandated to remit deducted pension contributions within 14 days of the end of each month. Failure to do so is not a minor infraction — it is a regulatory offence and, in many cases, a criminal act.

For years, rogue companies have exploited regulatory gaps, treating pension deductions as their private cash lifeline instead of funds earmarked for workers’ futures. That era must end — and IPEC’s latest intervention suggests it finally will.

But enforcement alone is not enough.

Transparency is critical to restoring discipline and rebuilding trust. Employees deserve to know which employers are jeopardising their futures. Investors and regulators need clarity on which businesses are operating in bad faith. The public deserves accountability.

Yes, Zimbabwe’s economic environment remains challenging. But hardship does not excuse criminality. If a company cannot meet its pension obligations, it should not deduct contributions — full stop.

Make no mistake, this is not just about protecting workers.

A properly regulated, fully funded pensions sector is a cornerstone of economic stability.

Pension funds are vital pools of long-term capital that support infrastructure, housing, and national development. Undermining them weakens both social protection and the broader economy.

Zimbabwe now stands at a crossroads.

We can tolerate corporate delinquency and watch the pensions sector disintegrate. Or we can rally behind IPEC’s firm, legally sound, and economically vital intervention to restore order, rebuild trust, and safeguard the future of workers and retirees.

The time for warnings has passed. The window for polite engagement has closed.

IPEC must act — swiftly, decisively, and transparently.

Garnish bank accounts. Seize assets. Name and shame delinquent employers.

This is not merely enforcement.

It is economic triage — and it may be Zimbabwe’s final opportunity to save the pensions sector from collapse.

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