By 
By Ross Moyo
The Insurance and Pensions Commission (IPEC) has issued a statutory directive to CBZ Bank to garnish the City of Harare’s bank accounts to recover ZiG40 million in outstanding pension contributions belonging to council employees. This move is aimed at protecting policyholders and signals a wider crackdown against major defaulters.
Pensions are critical for social security, acting as a foundation for retirement income and reducing old-age poverty. They ensure financial stability and provide income security for ageing populations, working alongside public systems to form a robust safety net.
“The commission has established that the City of Harare, a sponsoring employer whose employees are pension fund members of the Local Authorities Pension Fund, has defaulted on its statutory obligation to remit pension contributions for a period exceeding three months, in violation of Section 16 of the Pensions and Provident Funds Act,” reads the directive.
IPEC Commissioner Dr. Grace Muradzikwa emphasized the gravity of the offence, stating that sponsoring employers are legally obligated to deduct and remit pension contributions to registered pension funds within prescribed time frames. “These contributions constitute deferred earnings for employees and are critical for safeguarding their retirement security,” she said.
The order constitutes a “first-priority charge” against the council’s bank account and remains in effect until the full ZiG40 million is recovered. CBZ has been given five working days to provide written confirmation of compliance, including proof of payment and dates of remittance.
The regulator has warned CBZ against any attempt to circumvent the garnish order, stating that non-compliance constitutes an offence under Section 55(4) of the Act, carrying a penalty of a fine of up to Level Six or imprisonment not exceeding six months, or both.
IPEC continues to urge all employers, including public entities, to prioritise compliance with pension remittance obligations to protect workers’ retirement savings and uphold confidence in the pensions system.
Among the organisations flagged by the commission for non-remittance of pension funds are some of the country’s top companies, parastatals, and local authorities.
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