Pensioners Receive U.S.$100 Windfall From Kuvimba Dividend

PENSIONERS have started receiving US$100 payouts as dividends from the Kuvimba Mining House investment.

Kuvimba's portfolio includes Freda Rebecca Gold Mine, Bindura Nickel Corporation, Shamva Gold Mine, Jena Mine, Elvington Mine, Sandawana, Homestake, Zim Alloys, and an investment in Great Dyke Investments (GDI).

The Insurance and Pensions Commission (IPEC) holds a 5 percent stake in Kuvimba Mining House, and proceeds from that investment have been earmarked for compensation in respect of legacy pensions.

Last June, the mining group paid out a US$5,2 million dividend, with IPEC receiving US$400 000 on behalf of pensioners.

IPEC acting Commissioner, Ms Samantha Nhende, said pensioners who earned US$1 000 will be the first beneficiaries under this initial tranche.

"The first dividend from this investment, US$400 000, was declared in June 2021 and IPEC was mandated to administer the same, in order to compensate the affected private occupational pensioners.

"To ensure the funds distributed to the pensioners were meaningful, IPEC adopted a means test approach as per some recommendations from the industry," said Ms Nhende.

"This means tested approach considered pensioners who earned an annual pension below $1 000 as at December 31, 2020 for participation in the first tranche dividend distribution."

The payment arrangements have already been put in place.

She added that other cohorts of pensioners will participate in future dividend distributions, as and when the dividend is declared.

In the 2021 National Budget Statement, Finance and Economic Development Minister Professor Mthuli Ncube set aside resources then equivalent to US$75 million, to be applied to the compensation of pensioners for the loss of value.

These resources were later availed as US$75 million worth of shareholding in Kuvimba Mining House as compensation to the pensions industry as Government moved to acknowledge that the 2019 currency reforms had unintended consequences on pensioners within the private occupational pension schemes.

Meanwhile, Government is making steady progress in ensuring compensation for pensioners who lost value to hyperinflation circa 2008.

Pensioners and policyholders whose values were eroded at the time should start receiving compensation in this first quarter following the completion of a payment framework last year.