EMPLOYERS have shot down a proposal by the Insurance and Pensions Commission (Ipec) to regulate the National Social Security Authority (Nssa), arguing that there is already enough regulation.
By Kudzai Kuwaza
At an Employers’ Confederation of Zimbabwe meeting held in Harare last week, Ipec head of pensions Josephat Kakwere told employers that the body was proposing to regulate Nssa to ensure that it is properly run and that pensioners are not prejudiced.
Kakwere said it is necessary for the commission to regulate Nssa in the face of low confidence, poor corporate governance within pension funds and low coverage.
He said the commission, which is under the Ministry of Finance, had no intention of transferring the administration of the fund from the Ministry of Labour to the Finance ministry as widely perceived by business and labour.
“We have no intention to take over the management of Nssa,” Kakwere said. “We just want to keep an eye on the Nssa pension fund and to ensure that it is running smoothly.”
He said their supervision, which is done both off and on site, would ensure proper regulation of the Nssa fund, adding that it would also ensure that those who sit on the board have the necessary qualifications to ensure the fund is properly administered.
However, Nssa acting chief social security officer Shepherd Muperi told employers at the meeting that they did not need Ipec regulation as they are adequately supervised by a number of bodies which include the Ministry of Labour, parliament and the Auditor-General’s Office, adding that “too many cooks spoil the broth”.
“Nssa is adequately regulated and the regulation is very current,” Muperi said. “I am not sure whether there will be value addition in having another regulator.”
Some employers asked Muperi if there is any harm in adding another regulator in the form of Ipec, given Nssa’s record of managers being dismissed for corruption.