THE Insurance and Pensions Commission (IPEC) says it has made significant
strides in addressing the legislative reforms of the 2009 compensation issues with
the commission now on advanced stage.
In 2015 the Government set an eight-member commission chaired by retired Justice
George Smith to probe insurance contributions and pension benefits when the
country dollarised in 2009 following concerns by policy holders that they had been
short-changed.
Speaking during a Journalists Mentorship Programme IPEC Actuarial Director,
Robson Mtangadura, said they took more time finding effective ways in converting
the recommendations into reality and ensuring a smooth implementation.
“We have made significant strides in terms of legislative reforms. Around September
last year, the Pensions and Providence Fund Bill was promulgated into an Act, which
we are now operationalising and implementing. The Insurance Act is still with the
Parliament together with the IPEC Act. We hope those will be addressed soon.
“We understand that currency conversion done in 2009 and the Justice Smith
Commission, which was appointed around 2017 and now we are in 2023 but we are
still talking of compensation. Quoting Abraham Lincoln ‘Give me six hours to chop
down a tree and I will spend the first four hours sharpening the axe’. The idea behind
this statement is looking at the complexity of the conversion, hyperinflation. We had
to spend a bit more time to try and find effective ways of realising recommendation
into reality.”
The Commission wanted to avoid a situation where they would rush into
implementation and then a few months later into implementation they realise that
there are some gaps that will hinder the policy holders and pensioners in getting
what they are supposed to get.
“We spent a bit more time on the preparations side and we are happy that we are
now at a very advanced stage. We were making engagement with the Attorney-
General’s Office and the Ministry of Finance to try and make sure the regulations are
in a format that complies with the drafting requirements.”
The commission’s target is to close the 2009 chapter as soon as possible so that
they start on rebuilding the confidence in the market.
Meanwhile, the Government has committed US$175 million towards complementing
the compensation.
