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The Zimbabwe Congress of Trade Unions (ZCTU) has received with trepidation reports that the Ministry of Finance, through Zimra, is moving towards collection of National Pension Scheme levy on behalf of the National Social Security Authority (NSSA).
In a statement ZCTU Secretary general Japhet Moyo said as labour, they are very skeptical of this move as there is a possibility of the government failing to eventually transfer to NSSA the monies so collected.
“We would like to avoid a repeat of what workers experienced in 2008, when all the Zimbabweans lost their pensions after the economic collapse. The government might be forced to use the money for other purposes. There is also a possibility that the funds will be looted and used for political programs,” he said.
“It is our understanding that NSSA will be charged a 10% collection fee which translates to about $23 million. That will have an impact on our already meager pension payouts as NSSA may not be able to fork out an additional 10% over and above what ZIMRA would have collected.”
Moyo said it is also important to note that the system has never worked elsewhere in the World.
“The National Pension Scheme which is a form of Social Security cannot be compromised. Government currently owes NSSA well over 100 million United States Dollars and cannot be entrusted with that responsibility of collection of the levy. It is also disturbing to note that ZIMRA would only be able, after collection, to transfer to NSSA on a quarterly or half yearly basis , and that in its self will cripple NSSA operations,” he said.
“The ZCTU is prepared to organize its members to resist the move. We call upon President Robert Mugabe and the Minister of Finance to stop this move before it is too late.” source-Bulawayo24.