By Rangarirai Shanyurai
Masvingo pensioners asked for a seat in State Pension Fund Board during a public bill hearing at Civic Centre, Masvingo on February 25.
Pensioners said the bill gave the parent minister too much power to appoint board members excluding the pensioners themselves and said at least two members of the board should be pensioners.
Former legislator and Progressive Teachers Union of Zimbabwe (PTUZ) National Coordinator Harrison Mudzuri challenged clause 10 and 11 of the bill and said they two needed to be changed.
“Clause 10 grants the board investment powers, while Clause 11 allows the minister to issue policy directions. In clause 11, there are twelve board members and out the twelve, nine are appointed by the minister and we feel it’s not proper.
“We think six members should not be appointed by the minister because the appointer is the disappointer. The appointed plays to the tune of the appointer accordingly. The board must be elected by majority and we should have at least two pensioners in that board,” said Mudzuri.
He said the pay outs for pensioners were supposed to be enough for them to survive after retirement since most of them ended up looking for other jobs to make ends meet instead of resting.
“Pension benefits should have a bench mark so that retired civil servants would benefit because they might end up doing other work instead of resting,” said Mudzuri.
Retired Shakashe Head Alexander Mashenjere said pensioners were suffering as the pay-out was too little as compared to what others used to get and the monthly salaries they were getting could not cover essentials.
“I served in Ministry of Primary and Secondary Education for 37 years and retired in 2023. My pay out was equivalent to US$600 but long back others were getting better.
“We urge the government to review pension pay-outs regularly because the standard of living for many is declining,” said Mashenjere.
Another pensioner Tinos Mamboko said he struggled after getting his pension pay-out in local currency that was losing value every day.
“We are struggling to survive, we get US$30 per month and that is not enough for basics. We end up removing other services like medical aid and funeral policy from the budget.
“The situation is getting worse by the country’s high inflation rate which has seen the value of local currency falling and this is not fair considering the number of years we have been in government,” he said.
The Parliamentary Portifolio Committee on Public Service, Labour and Social Welfare chairperson Tendeukai Matara who was chairing the hearing said the bill sought to ensure that pensioners live a decent life after retirement.
“The State Service (Pensions) Bill, 2024, aims to establish a centralized State Service Pension Fund, enhancing financial security for retired state employees. It ensure a that members enjoy a decent standard of living in their retirement.
“The Fund will provide for payments of pensions, gratuities and other benefits in respect of retirement of persons employed by the State. The Bill aligns with international social security standards and consolidates pension management under a unified framework,” said Matara.
The State Service (Pensions) bill consists 38 clauses and Clause 1 provides for the short title and commencement of the Act. Clause 2 defines key terms such as approved service, pensionable emoluments and Fund.
Clause 3 establishes the State Service Pension Fund, centralized for the payment of pensions and other benefits to members and dependents. Clause 4 outlines the composition of the Fund, comprising contributions from members and the State, investment income, and other accruing sums.
