The Mining Industry Pension Fund (MIPF) saw contribution collections plunge to just 44% in 2025, highlighting mounting pressure on the pension scheme despite strong investment returns and a funding position that remains above regulatory requirements, Mining Zimbabwe can report.
By Ryan Chigoche
Presenting the Fund’s performance at its recent Annual General Meeting, MIPF Principal Anymore Taruvinga said the sharp decline was largely driven by non-remittance by some mining employers.
The shortfall has emerged as one of the Fund’s most pressing concerns, constraining liquidity, limiting investment growth, and raising risks to the long-term sustainability of member benefits.
In response, MIPF has rolled out a revised recovery plan aimed at improving compliance and boosting contribution inflows. The measures include tighter reporting cycles, direct engagement with defaulting employers, and stronger escalation procedures for repeat offenders. Members have also been encouraged to report cases of non-remittance directly to the Fund as it seeks to protect retirement savings.
The strain is already reflected in key financial indicators. The Accumulated Fund declined to US$267.623 million in the first quarter of 2026 from US$318.056 million in the previous quarter, while Assets Under Management fell to US$260.680 million from US$310.556 million in the previous year.
Even so, MIPF remains financially resilient. The 2025 actuarial valuation showed a funding level of 116%, down from 160% a year earlier but still above the minimum solvency threshold of 100%. Investment returns reached 23.27% in 2025 before easing to 17.80% in the first quarter of 2026.
That performance continued to deliver value for members. Sub-account 1 received a declared bonus of 19.86% and a pension increase of 18.32%, while Sub-account 2 received a bonus of 47.76% and a pension increase of 39.42%.
While collections remain the immediate challenge, MIPF is also confronting pressures within its investment portfolio. Property accounted for 50% of total investments at the end of 2025, making the Fund particularly exposed to the effects of urban decay on some of its central business district assets.
Rather than retreating from the sector, the Fund is investing in developments designed to strengthen future income streams and unlock value from its property portfolio. The Chinhoyi Students’ Accommodation project is 79% complete and targeted for completion in August 2026, while the Gokwe Shopping Mall has reached 74% completion and is scheduled for delivery during the same month.
MIPF is also generating near-term cash flows through the sale of 220 residential stands under the Impali development, comprising 156 high-density and 64 low-density stands. The Fund said it remains ready to implement compensation measures related to pre-2009 loss-of-value claims once regulatory guidance is issued.
Beyond collections and property, MIPF is pursuing operational reforms aimed at improving member services and controlling costs. Benefit structures are under review to address low pension values, system upgrades are expected to reduce claims processing times, and awareness campaigns are being intensified to attract mineworkers who are not yet members of the scheme.
The Fund also continued to support members through its mortgage assistance programme, disbursing US$3.16 million to 222 members and ZWG18.79 million to a further 809 beneficiaries during the period under review.
Looking ahead, MIPF’s ability to sustain its strong investment performance will depend in part on reversing the decline in contribution collections. Although the Fund remains well-funded and continues to generate positive returns, management believes stronger employer compliance will be critical to protecting member benefits and ensuring the scheme’s long-term sustainability.
