dissertation by ben chibhamu 2016
TRANSCRIPT
DEPARTMENT OF ECONOMIC HISTORY
AN ENQUIRY ON THE ADMINISTRATION AND OPERATIONS OF THE
GOVERNMENT PENSION FUND IN SOUTHERN RHODESIA, 1898-1949
BY
BEN-JUNIOR CHIBHAMU
MAY 2016
BEING A DISSERTATION SUBMITTED TO THE DEPARTMENT OF ECONOMIC
HISTORY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
BACHELOR OF ARTS SPECIAL HONOURS DEGREE IN ECONOMIC HISTORY AT
THE UNIVERSITY OF ZIMBABWE
i
CONTENTS PAGES
DEDICATION…………………………………………………………………………………………………………………….. Ii
ACKNOWLEDGEMENTS…………………………………………………………………………………………………….. Iii
LIST OF ABBREVIATIONS………………………………………………………………………………………………..…. IV
LIST OF TABLES………………………………………………………………………………………………………………….. V
GLOSSARY OF TERMS………………………………………………………………………………………………………...VI
INTRODUCTION……………………………………………………………………………………………………………….…..1
JUSTIFICATION OF STUDY.........................................................................................................3
LITERATURE REVIEW.................................................................................................................4
AIMS AND OBJECTIVES..............................................................................................................7
METHODOLOGY........................................................................................................................8
SECTION 1: THE DEVELOPMENT OF PENSIONS IN SOUTHERN RHODESIA 1898-1923……….…9
1.1: PENSIONS FOR THE ARMED FORCES AND MEMBERS OF THE PIONEER COLUMN………..11
1.2: CHALLENGES FACED BY THE BSAC IN ADMINISTERING PENSIONS………………………….....16
SECTION 2: PENSIONS SINCE THE RESPONSIBLE GOVERNMENT 1923 TO 1949 ……………….....20
2.1: WOMEN PENSIONS IN THE CIVIL SERVICE……………………………………………………………..………28
2.2: GOVERNMENT PENSION POLICIES FROM 1937…………………………..………………………………….31
2.3: THE SOCIAL AND ECONOMIC STATUS OF RETIRED AFRICANS…...35
CONCLUSION………………………………………………………………………………………………...39
BIBLIOGRAPHY…………………………………………………………………………………………......41
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DEDICATION
This dissertation is dedicated to the Chibhamu family, friends and relatives.
iii
ACKNOWLEDGEMENTS
I would like to offer my gratitude to the following people whose support during my research was
greatly important, Dr Eric Makombe my supervisor, Dr Ushehwedu Kufakurinani, Mr. Brian
Ngwenya and my classmates, Tonny Kamangira “the beer master”, Madondo “mdara we Sadza”,
Sekai Kashamba, Dominic Chinyani, Takuva, Peter Uled, Susan Ziki, Wellington, Bushu, Sandra,
Antony, Mawoneni, and Stephanie Mahere Mudiwa. All these guys made my life at college a joy
to remember all the times. To the entire Economic History Department, I salute you.
Not forgetting my best friend, Cosby Sagiya, I thank you for all the support you gave me since my
first day at UZ. You remain a role model to my academic journey, “Ugare kure ne moto mfana”.
To my family, I say, may God continue to bless all your wishes in life, your financial and moral
support was a blessing.
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ABBREVIATIONS
BSAC -BRITISH SOUTH AFRICA COMPANY
BSAP -BRITISH SOUTH AFRICA POLICE
DB -DEFINED BENEFIT
DC -DEFINED CONTRIBUTION
NRR -NATIVE RIFLES REGIMENT
RG -RESPONSIBLE GOVERNMENT
RAR -RHODESIA AFRICAN RIFLES
WW1 -WORLD WAR ONE
WW2 -WORLD WAR TWO
v
LIST OF TABLES
TABLE 1. AMOUNT OF ANNUITY, AND ACCRUED BENEFITS FROM 1924 TO 1928
UNDER THE DEFINED BENEFIT PLAN OF SOUTHERN RHODESIA.
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GLOSSARY OF TERMS
ANNUITY : A form of financial contract mostly sold by life insurance companies that guarantees
a fixed or variable payment of income benefit monthly, quarterly, half-yearly, or yearly) for the
life of a persons the annuitant or for a specified period of time. It is different than a life insurance
contract which provides income to the beneficiary after the death of the insured. An annuity may
be bought through installments or as a single lump sum. Benefits may start immediately or at a
predefined time in the future or at a specific age.
ACCRUED BENEFITS: The amount of accumulated pension benefits of a pension plan member
on the basis of years of service.
DEFINED BENEFITS: Is one where the amount you are paid is based on how many years you've
worked for your employer and the salary you've earned.
DEFINED CONTRIBUTIONS: A retirement plan in which the employer, employee or both
make contributions on a regular basis.
DOLE: A payment similar to an annuity paid under the conditions of provident pensions.
LUMP SUM PAYMENT: A one-time payment for the total or partial value of an asset. It is usually
taken in lieu of recurring payments that would otherwise be received over a period of time.
PENSION FUND: Is a common asset pool meant to generate stable growth over the long term,
and provide pensions for employees when they reach the end of their working years and commence
retirement.
PROVIDENT PENSION: is a fund created by the employer’s in which a certain percentage of
amount is contributed every month by both the parties.
1
INTRODUCTION
The study investigates the development of the pension fund and shows how it was administered
by the Government of Southern Rhodesia from 1898 up to 1949. It reveals how the transition of
Government from British South Africa Company (BSAC) to Responsible Government impacted
on the structure of the pension system. There are two categories of analysis in the study, the first
is based on showing the racial discriminatory element of the pension system given the colonial
status of the country during that period. In this aspect, the study examines how the citizens, both
Europeans and Africans were defined by the legislation to benefit from the fund. Another category
of analysis is based on the gender dimension of pensions, basically, the focus will be on women
who served in the civil service in general and widows in particular, and show how the Government
addressed their pension rights. Overall, the study stands as an introduction to the development of
pensions of the Government in Southern Rhodesia, and how it changed over time.
In section A, basically the focus is on the British South Africa Company’s (BSAC) administration
of pensions since 1898 up to 1923. During the time of company rule, there was a piece of
legislation which governed the pension fund of the Government. The Principle Act of 1898 was at
the front governing the pensions.1 The Act was designed in such a way that, it set rules and
regulations for retirement conditions of workers, preservation of pension rights and the method of
contributions.2 Nevertheless, there was a section of employees who wanted improvements on the
1 NAZ, S1656/2, Minister of salaries and pensions, pension fund returns 1924. 2 Ibid.
2
way pensions were allocated, these included nurses and teachers, some called for recognition to
pension benefits, for example, members of the pioneer column and Native Police, and
improvement of pension accounts.3 Emphasis is given to the fact that, priority to pensions, was
given to members of the Armed Forces, though other departments of the Government were
benefiting. Throughout the period from 1898 to 1923, the BSAC faced some huge administrative
challenges in managing the scheme.4 In short, Section A will reflect on this important historical
background of pensions prior to Responsible Government.
In Section B, the focus is on multiple aspects inter-related in explaining the character of pensions
in Southern Rhodesia from 1924 to 1949. The most important aspect is to show how the transition
of Government from BSAC to Responsible Government was central to the future of social security
policy in general, and pensions in particular. Particular attention is given to the role of the
legislation in shaping the pension fund. It is important to note that, the legislation directly
influenced the social and economic objectives of the pension fund, such that, it negatively and
positively impacted on the status of Rhodesian citizens differently. The aspect of racial
discrimination is best explained through the examination of laws which were passed since 1924.
The most important argument is that, Africans were excluded from benefiting from the pension
fund as endorsed by the legislation. Their exclusion led to deterioration of their social and
economic status in the colony.5 However, their exclusion does not imply to all Africans, some
3 NAZ, S2555/2, War Pensions, Letters of ex-officers in Salisbury, 1916. 4 NAZ, S3421/2, Pensions Office, Pension schedule for 1936-49, 1949. 5 NAZ, Debate on pensions: Parliamentary library of Southern Rhodesia 1928.
3
Africans who served in the Second World War, and the Rhodesia Police were fortunate to have
received pensions from the Government.
In addition, gender dimension of pensions since 1923 to 1949 is examined in detail. Women in the
public service faced several challenges in their careers. The prime challenge was on the obstacles
installed by the legislation, where married women because of the marriage bar were disadvantaged
to full pension benefits.6 In the case of single women, again, they were paid lower rates of pensions
as compared with men.7 This had a negative impact on their social and economic status in the
colony. Overall, the section examines how the pension fund during the time of Responsible
Government was administered and how it impacted on both Europeans and Africans.
JUSTIFICATION OF STUDY
The study is influenced by the need to explore the status of social security for employees of the
Government. An understanding of the past pension system helps to measure the importance of
pensions to workers, given the position of those who were benefiting and those who were excluded
from pension benefits. An examination of the legislation and administrative issues concerning
pensions is central to our understanding of the difference between colonial policies and post-
colonial policies, and measure whether there has been any changes made by the Government in
revising its pension policy.
6 U Kufakurinani, Negotiating Respectability: White women in the Public service of Southern Rhodesia, Harare: University of
Zimbabwe. Journal of Social Science Research, Vol, 1, 2012.p 2. 7 Ibid.
4
The study begins in 1898 with the introduction of the Principle Act which was Promulgated 31
April, and brought into operation in October the same year.8 Thus, the whole aspect of pension
fund was coined in Southern Rhodesia in 1898 and onwards.
The study ends in 1949 because firstly, from the inception of the pension policy in 1898 to 1949,
the majority of Africans were excluded from pension benefits, in the post 1949 period, the
amendment of the Public Service Act led to their inclusion. Thus, the study is divorced from the
period when Africans were benefiting from Government pensions. Secondly, the Public Service
Act Amendment of 1949, led to miscellaneous and consequential changes to various laws. Hence,
I choose to maintain the scope of the study to the period before these amendments.
LITERATURE REVIEW
Murinda tackled the dynamics in the social security policy during the period 1939 to 1947,
specifically focusing on pensions in the private sector. His work is relevant to this study, he points
out that a pension during the greater part of the colonial rule was not availed to everyone, because
of racial discrimination.9 Only the African elite in the public service, police and defense forces
received pensions in the colonial period. As such, this is a modest attempt to account for the
response by Africans who were excluded from pension schemes in the private sector.
D.G Clarke’s work is central in accounting for the history of post-employment benefits for
Africans. He offers a historical account on the position, treatment and survival of ageing Africans
8 The Statute law of Southern Rhodesia, Revised Edition 1939, Vol.2. 81
9 R. Murinda, ‘The Economic position of Pensioners in Colonial Zimbabwe, Seminar paper Presented to the Economic History
Department’, University of Zimbabwe, and October 2005. 15.
5
in the colonial period. Clarke argues that, racial prejudice within the colony, saw most Africans
being left out of pension benefits. Instead, they were left to depend on handouts for survival after
their gratuities were eroded10. Africans in Southern Rhodesia in general and the civil service in
particular were not accommodated in any form of social security before 1949.11 The argument
offered by the white settlers was that the land reserves cushioned their old, sick and destitute. This
study contributes to the body of knowledge on pension policy.
E Kaseke has examined social security in the post- independence period and his main concern was
on pensioners in Zimbabwe since independence. Kaseke provides a detailed background of Social
Security during the colonial period which helps to explain the social security of ordinary
Zimbabweans. In the initial sections of his article, he provides a colonial background of pensions,
which is linked to the present pension system. He views social security to have been polluted by
racial discrimination.12 The system of racial discrimination during the colonial period led to
selective racial poverty, where Africans became vulnerable to continued poverty. Kaseke maintains
the position that, pensions were a blessing to the whites in Southern Rhodesia.13 The study by
Kaseke shows a growing trend of social exclusion of Africans by the Colonial Government. In
particular, pensions benefited the whites as stipulated in the colonial legislation in Southern
Rhodesia. Kaseke argues that, the pension system was also characterised by gender
discrimination.14 However, the gender dimension was not given greater attention in his
10 D.G. Clarke, The Economics of Urban inequality in Rhodesia Considerations on the
Langley, Written and Wright Report, 1972: Conference on African Influx and Urbanization in Salisbury, p, 25.
11 Ibid. 12 E Kaseke, ‘Social Exclusion and Social Security: The Case of Zimbabwe’, Harare: University of Zimbabwe. p, 12. 13 Ibid. 14 Ibid.
6
background. The work by Kaseke is central to the study as he provides a historical fact about
pensions in Southern Rhodesia. My point of departure is on discussing how the white population
benefited from the pension fund.
The development of labour recruitment of Africans in Southern Rhodesia was a primary initiative
central to the capitalist survival in the colony. Van Onselen examines how the colonialists sought
to acquire cheap labour from the Africans. The recruitment aimed to feed the mining and
agricultural sectors with cheap labour.15 It is upon the recruitment of labour, that, Africans were
clearly positioned as unequal to the Europeans. This is evidenced by the treatment they received
from the colonial masters. Discrimination of Africans from social and economic benefits started
with their recruitment into wage employment.16 However, my point of departure with Onselen is
on the recruitment into the public service and the aspect of social security for both Africans and
Europeans in Southern Rhodesia.
Ushehwedu Kufakurinani carried out a study on the recruitment of white women in the public
service of Southern Rhodesia. He argues that the Colonial Government tended to favour men at
the expense of women.17 Women received low payments rates of pensions in all sectors, “…The
marriage bar brought about conditions of service that affected married women which denied them
access to pensions, enjoyed by single and permanent employees…”.18 The gender aspect of
pensions and the status of recruitment by the Government is examined in his work. The work
provides historical knowledge on how the Government approached women affairs in the public
15 C. Van Onselen, Chibaro: African Mine Labor in Southern Rhodesia 1900-1933, Ravan Press, 1976.p, 12. 16 ibid. 17 U Kufakurinani, Negotiating Respectability: White women in the Public service of Southern Rhodesia, Harare: University of
Zimbabwe. Journal of Social Science, Vol. 1, 2012. P, 2. 18 Ibid.
7
service of Southern Rhodesia.
Sachikonye explores the transformation of colonial labour policies and how they affected the
livelihood of ordinary African workers in Southern Rhodesia. He observes that, colonial labour
legislation was designed to systematically exploit African labour at all costs.19 In particular he
examines how the Industrial Conciliation Act of 1934 defined Industrial Relations in the colony.20
The work is central to the study of pensions in colonial Zimbabwe because, it provides an
appreciation of reasons for the deliberate exclusion of Africans from the pension system. In his
work, Sachikonye provides knowledge on the operation of the Industrial Conciliation Act and its
impact on Africans.
AIMS AND OBJECTIVES
The overall aim of the study is to examine the origins and development of the pension fund system
in Southern Rhodesia with the following objectives: to...
1. evaluate the reasons which contributed to the development of Pension Fund System.
2. review the administrative history of the pension fund system of the civil service.
3. present evidence on the unjust economic and social impacts of pensions on Africans.
METHODOLOGY
The researcher mainly used primary sources from the National Archives of Zimbabwe. The
primary sources were in the form of Government Notices, formal letters, Commission of Inquiry
19 L.M. Sachikonye, Labour Legislation in Zimbabwe: Historical and Contemporary Perspectives, Brington: University of Sussex
Falmer, 1990.p, 23 20 Ibid.
8
Reports, Parliamentary minutes and newspapers. Government Notices were helpful with
information that includes changes in administrative procedures and protocols and announcements
to heads of departments on matters related to pensions. Correspondences were helpful in providing
evidence of applications of requests for pensions and the responses they received. Commissions
of Inquiry Reports were also helpful. Parliamentary minutes were also used to the progress of the
study. Parliamentary debates by the legislators provided additional information on the reasons
which led to the development of the pension system. Secondary sources were retrieved from the
University of Zimbabwe Main Library. Under secondary sources, include, Published Books,
Journals and Dissertations. The secondary sources were used for preliminary guideline to the study,
and as supporting evidence to already established knowledge. Interviews were carried out
specifically in Gutu Magombedze area in the South Eastern Province of Zimbabwe during my
vacation period from 12 to 24 December 2015.
9
SECTION 1
THE DEVELOPMENT OF PENSIONS IN SOUTHERN RHODESIA 1898-1923
In 1898 the Government of Southern Rhodesia then British South Africa Company (BSAC)
introduced the first pension fund facility for its workers.21 The Civil Service Pension Fund was
constituted in terms of the rules framed under the regulations of the Principle Act of 1898.22 The
pension fund was divided into two sections, the Southern Rhodesia Pension Fund and the Southern
Rhodesia Widows’ Pension Fund. These two pension funds were all defined in the Principle Act
or the Public Service Act (Chapter 68)23. According to the regulations of the Principle Act, it
defined a pensioner as a person who was in receipt of a pension under Part 1 of the Principle Act
of 1898.24 It is important to note that, although the Principle Act had set stage for social security
in the Government, however, there were several challenges in administering the facility. On the
other hand, credit is given to the Government for introducing pensions for its employees in
Southern Rhodesia.
The method of payment for pensions changed over time during the BSAC. At first, from 1898 to
1908 pensions were issued through Lump Sum payments.25 According to the arrangement, when
21 NAZ, S2619/47, Pensions Office: Department of Internal Affairs, Government Notices, No 864, 1949. 22 NAZ, MS 1045/13Public service Act Bill of 1931. 23NAZ, The statute law of Southern Rhodesia Revised Edition 1939, Vol.11. 24 Ibid. 25 NAZ, 3/7/18, the secretary of Southern Rhodesia Civil service Council, 1922.
10
a worker reached his or her pensionable service, a onetime payment was paid by the Government
according to section 2 of the Principle Act.26 The initial payment was however paid after two
months after the actual date of retirement.27 Since 1898 to 1906, Southern Rhodesia had only eight
workers benefiting from the pension fund.28 The pensioners had earlier started their carriers in
South Africa before migrating to Southern Rhodesia. All the eight were teachers working under
the Department of Education.29 A Lump Sum of 84 £ was issued to these eight, after a period of
two months from the date of retirement.30 However, the Government was not in agreement on the
age of retirement of these teachers. Later in 1908 the Government moved from Lump Sum
Payment to Annuity or Dole. The Annuity was paid to a workers upon reaching their retirement
age, pensionable service or when seriously injured to the point of disability. An Annuity of 12£
was issued to workers from 1908 to 1923 by the Government of Southern Rhodesia.31
The method of contribution to the pension fund evolved around the contributors and the rate of
contributions. Contributions towards the pension fund were paid to the Consolidated Revenue
Fund in terms of Section 8 of the Principle Act.32 According to the bargain reached by the workers,
they agreed to contribute 3 % of the actual salary monthly to the Consolidated Revenue Fund.33
The Contributor had the right to retire on pension on attaining the pensionable age. The
Contributions were deducted from each and every payment of pensionable emoluments made by
26 Ibid. 27 Ibid. 28 NAZ, 3/7/18, the secretary of Southern Rhodesia Civil service Council, 1922. 29 NAZ, M3599 Pensions Treasury, Letter by the Secretary of Education Department to the Secretary Finance Department
requesting permission to withdraw cash to serve members of the Education department who were requesting for recognition of
pay role, 16/05/09. 30 NAZ, 3433/193, the retiring age of teachers, Report written by the Secretary of education in Salisbury, 20 March 1902. 31 NAZ, 3/7/18, the secretary of Southern Rhodesia Civil service Council, 1922 32NAZ, The statute law of Southern Rhodesia Revised Edition 1939, Vol.11. 33 Ibid.
11
an officer. Any reference to the Southern Rhodesia Pension Fund and the Southern Rhodesia
Widow’s Pension Fund were considered as reference to the Consolidated Revenue Fund.34
However, given the rate of contributions made by the workers from the period 1898 to 1923, the
total amount of pension later received was very little as evidenced by the complains made by
teachers and nurses who called for increments in the annuity from 12£ to an amount considered
reasonable given the economic conditions.35
SUB SECTION 1.1
PENSIONS FOR THE ARMED FORCES AND MEMBERS OF THE PIONEER COLUMN
The most vocal groups which expressed concern over their pension rights were the Armed Forces
and members of the Pioneer Column. They challenged the Government to improve the pension
policy. Another challenge came from Africans as they raised their grievances towards pensions.
These included, members of the British South Africa Police (BSAP), who were known as the
‘Native Police’ and those serving in the Rhodesian African Rifles (RAR). All the efforts to push
the Government into submission of introducing pensions for Africans proved to be a fiasco.
Outstanding lists of members of the Pioneer Column were not awarded pensions.36 The same was
true for the members of the BSAP who fought during the Shona- Ndebele Uprisings.37 Strategies
to restructure pension accounts seemed to have yielded fewer changes because the Pension Office
of 1916 experienced major challenges in financing its provident pension system.
34 Ibid. 35 NAZ, A/3/3/6 Comments made by a visiting social welfare expert Interviewed by the Herald, March 1926. 36 NAZ, S2619/47, Pensions Office: Department of Internal Affairs, Government Notices, No 864, 1949. 37 Ibid.
12
Members of the pioneer column and the British South Africa Police were among the first workers
to be recruited into the civil service. The pioneer members were again the first to attain pensionable
service, in Southern Rhodesia.38 In 1905, Colonel Heyman who represented war collaborators of
the 1893 rebellion, during a Legislative Council session, asked ‘for a return showing the number
of ex-officials and other persons at present drawing pensions from the Government, the amount of
such pensions and period of service’.39 In his position as the representative of war pensions, there
seemed to be no official record for the pension of ex-officials in 1905. In addition, Colonel Gray
asked, ‘pursuant to notice, whether the government will consider the advisability of bringing the
British South Africa Police under the pension regulations of Police ordinance, 1903, in accordance
with the course adopted in favour of the Rhodesian constabulary’.40
A majority of former British South Africa Police were still not included in the pension regulations.
From 1898 to 1916 pensions for members of the police was accessed by high ranking officers. It
is only in the late 1930s, the uniformed forces including low ranking officers became liable to
pension benefits from the civil service as stipulated by the statute law of 1939 on Pensions for
members of the Armed Forces.41 The representatives on war pensions in their capacities tried to
convince the Government on the agent need to offer pensions to members of the Armed Forces.
Some noncommissioned officers who had been seriously injured in the battle front and or disabled
relied on donations and help from their family members because they were no Pension
arrangement for them during the war.42
38 NAZ, 3/7/18, the secretary of Southern Rhodesia Civil service Council, 1922. 39 NAZ, Southern Rhodesia Legislative Council Proceedings and Ordinances 1904-1908: Vol-2, Argus printing, 1905. 40 NAZ, S227/4, Letter written by Colonel Gray to the Administrator of the Pension Office, 1916. 41 NAZ, S227/6, Letter return to the Minister of Internal Affairs, Attention to war pensions, 1915. 42 Ibid.
13
With the Outbreak of the First World War in 1914, Southern Rhodesia was dragged into this
international conflict in support of the Western Allies. The war is significant because it
transformed Government stance towards the pension policy. Since the outbreak of the war, the
Government shifted its focus from civilian pensions, towards Armed Forces pensions. However,
it is important to note that, part of the civilian population still benefited, this include the widows.
The number of the injured and the disabled who returned to Southern Rhodesia was so alarming
to the Government.43 There was need to compensate the disabled, widows, and the injured.
Pensions for members who served in the WW1 ranged from 11£ to 13 £/ year.44 Moreover, the
Government had no intentions to include Africans into the pension facility, however, with the
increasing pressure for additional manpower, Africans in Southern Rhodesia united with their
colonial masters to fight in support of the Allies.45 The most important driving factor which
persuaded Africans to join in the war effort was the promise made to them by the Government to
receive pensions and compensation when they returned from the war.46
The War Pensions Office under the War Department was responsible for the welfare of Rhodesian
forces during their involvement in WW1.47 The War Pensions Office played an influential role
towards mobilising Social Security strategies for its subordinates in the Army. A generous life
time pension was promised to Soldiers who were going to serve in the war effort. It is important
to note that, after the end of the war, a total of 756 regular White Rhodesian Soldiers both injured
and dead were recorded by the pension office as part of the list of people who were to benefit from
43 NAZ, S3421/2, Pensions Office, Pension schedule for 1936-49, 1949. 44 NAZ, S2555/2, War Pensions, Letters of ex-officers in Salisbury, 1916. 45 J. Timothy, No Insignificant Part: The Rhodesia Native Regiment and the East Africa Campaign of the First World War.
Waterloo, Not: Wilfred Laurier University Press, 2006. P, 14. 46 Ibid, p.23. 47 NAZ S3421/2, Pensions Office: The Secretary of Internal Affairs writing on Pension schedule for 1926-49, 1949.
14
the pension fund.48 However, by the end of the war, the Government was note able to issue these
pensions with immediate response. The major reason for its failure is based on the inability of the
Government to generate profits from the investments made by the Revenue fund since the outbreak
of the war.49 Hence failure to pay these soldiers had a negative political impact on the, BSAC;
political pressure for change of Government became apparent since the end of the First World
War.
The implication of the failure to pay pensions to the ex-officers of the British South Africa Police
had a negative political impact on the future of the British South Africa Company and the attitude
of reserve forces towards the need to participate in the Great War. There was great fear that, the
Government would fail to pay compensation of service. The changing political spirit towards the
First World War was expressed by the leading instructors at one of the leading second reserve
regiment based in Salisbury in 1916. Some of the letters written by ex-soldiers showed evidence
of discontent, ‘a majority of the ex-officers showed in their letters received by the Pension Office
that, there were staging to demonstrate against the BSAC with immediate effect’.50 One of the
officers in Salisbury by the name Johnson Miller who served in the Allied front in German East
Africa wrote in 1915, ‘when retired from this respectable service, was only given 58 £ which was
meant to service my outstanding debts on wagons and furniture installation.’51
The most fascinating situation was when a pensioner was burdened by debts during his time of
retirement. In the case of Miller, because the government failed to award him with a life time
pension, it meant, he was forced to seek credit from other creditors to pay up his installments.
48 NAZ, S2555/2, War Pensions, Letters of ex-officers in Salisbury, 1916. 49 NAZ, 3/3/9, Internal Affairs Department, Replying letter to the Ministry of Finance and the Treasury, 1907.
50 NAZ, S227/4, Letter written by Colonel Gray to the Administrator of the Pension Office, 1916. 51 NAZ, S2555/2, War Pensions, Letters of ex-officers in Salisbury, 1916.
15
Politically, the failure to pay ex officers increased the ideal of political change in Rhodesia. A
majority of ex officers affected by the pension, were calling for political transformations which
could lead to improvements in social security policy.
Africans, who served during the First World War, also presented a major challenge which needed
agent attention from the pension’s offices. A number of officers from the Rhodesia African Rifles
(RAR) who had retired, were not receiving pensions from the Government. However, this does not
mean to say all the members from the RAR did’ not receive pensions. The First World War was a
major event which marked the desperate recruitment of Africans to serve in the Government. When
it was established that, there was need to secure strategic lines with borders between Nyasaland
and German East Africa to fight the Germans, attention was turned to the recruitment of Africans
in Southern Rhodesia.52 The major reason for turning to Africans was due to exhaustion of
European regiments. However, white settlers in Southern Rhodesia had always rejected the ideal
of arming Africans. In November 1915, the Rhodesian forces General, Colonel A.H.M. Edwards,
argued for the creation of an African battalion in Southern Rhodesia.53 The War Office requested
the BSAC to do this, and it took the BSAC some time to reconsider the proposal.54 It was planned
that the soldiers would come from Matebeland and the recruits were tilted the Ndebele regiment.55
Senior officers were recruited from the BSAP and Native Affairs department. A gratuity of 10 £
was fixed for the next of kin and 10 £ exemption from hut tax was decreed.56 Individuals who were
partially disabled due to war service would qualify for 10 £ compensation. Permanently disabled
52 J. Timothy, No Insignificant Part: The Rhodesia Native Regiment and the East Africa Campaign of the First World War.
Waterloo, Not: Wilfred Laurier University Press, 2006.p.21. 53 Ibid.p.22. 54 Ibid.p.22. 55 Ibid, 24. 56 Ibid, 26.
16
men would receive a pension of 3 £ per month. In the case of Europeans, for example a sergeant
was paid 180 shillings per/month and higher ranks received 250 £/year.57 It must be noted,
however, that, all these terms which were made before the war, remained on paper for Africans
and never materialised during this period.
SUB SECTION 1.2
CHALLENGES FACED BY THE BSAC IN ADMINISTERING PENSIONS
In the case of possible allocation of pensions deductions, they were made in terms of rule 28
published under Government Notice of 1910.58 It stated that, when a worker reached 65 years and
was a citizen of Rhodesia for more than 10 years they would be liable to receive a pension when
they were clearly registered with the pension office.59 However, all these arrangements made by
the Government were not under a registered pension plan. Civil service rules on pensions were
central in defining deductions. Contributions towards the pensions were pegged at 4% of the
monthly salaries from 1899 to 1906.60 In 1907, the pension contributions were slashed by one
percent to stick at 3%.61 The reason for slashing the rate is not clear.
The contributions were more pronounced in sectors such as health, education and public works.
Although the council had set rates of payments to contributions, the Government was not agreed
on the age of retirement. Those who applied for pensions before reaching their 60th year were
retained.62 However, the Government Notice of 1902 indicated that the age of retirement for
57 NAZ, S227/6, Letter return to the Minister of Internal Affairs, Attention to war pensions, 1915.
58 NAZ, 3/2/12, Government Notice No 257, 1910. 59 Ibid 60 NAZ, Southern Rhodesia Legislative Council Proceedings and Ordinances 1904-1908: Vol-2, Argus printing, 1905. 61 Ibid. 62 NAZ, 3433/193, the retiring age of teachers, Report written by the Secretary of education in Salisbury, 20 March 1902.
17
teachers stood at 55 or 60.63 Thus there was no reason to refuse considering pensions for teachers
who had reached the defined pensionable service. The refusal by Government to award teachers
with pensions who had not reached 60 years was further strengthened by the Attorney General who
rejected the proposals to accept the list of teachers and nurse to receive pensions in 1922.64
The administration of provident pensions proved to be a disaster in some ways. Delays in pay-
sheet returns led to financial constraints which in turn stipulated selective issuing of pensions. In
July 1919, the Secretary of Treasury issued a statement indicating the impossibility of calculating
the amount payable to those who were to receive their pensions,
As you are aware, the government makes a pound to pound contribution towards the
provident pension, and the monthly amount payable cannot be calculated until the
collection from all departments is complete, the delay in payment of government moiety
causes a loss to the pension funds in respect of interest.65
The BSAC lacked transparency of the pension returns. Failure by the Government to secure its
pension returns was a major problem which caused delays in payments and selection of pensioners.
Due to lack of organisation in the administration, pensions during the period remained unresolved
in all Government departments. Later in 1923, pension fund deposits made in terms of section 6,
subsection 3 of Government Notices of 1921 were to be covered on the pay-sheet in the
miscellaneous column and headed deposits.66 The pay-sheet of pensions were to be made on a
different or separate return instead of being included in the Pension Fund Bureau.67 The making
of separate payment sheets was intended at reducing the losses made during bank transfers and
63 NAZ, 3/2/12, Government Notice No 257, 1910. 64 NAZ, 3/7/15, the secretary of Southern Rhodesia Civil service Council, 1922. 65 NAZ, 3/7/28, the secretary of Southern Rhodesia Civil service Council, 1923. 66 NAZ, S3421/2, Pensions Office, Pension schedule for 1936-49, 1949. 67 Ibid.
18
also the hope that, the pay role for pensioners would increase to include those who were not
included. It was also intended at making earlier payments of installments as according to the
provident plan.68
Retrenchments after the end of the First World War in 1918, and reduction of salaries and delays
in salary payments were some of the reasons contributing to failure of pensions. The pension
office had invested in three ways, which was share market, money market and property market
and all these were shrinking due to the impact of loss of shares on the International Market after
the end of the First World War. The Minister of Dominion Affairs blamed the disorganisation of
pensions to external Affairs which were directly affecting the Rhodesian economy.69 However, in
the practical sense, the pension system can be argued to have been informal, thus it failed to take
into account some of the major technical requirements when managing pensions. On the side of
Africans, one can clearly argue that, the aspect of racial segregation was at the core of Government
policy. Hence, apart from external international affairs and financial problems, the Government
was to blame for having failed to pay pensions to Africans who served in the public service. Up
until the passing of the Public Service bill in 1931, the Government seemed not clear and not
prepared to consider Africans who served in the armed forces of Southern Rhodesia and other
Government departments.70 The majority of Acts which followed in the post BSAC period argued
for the inclusion of Africans and Coloreds in the provisions of pensions. However, the Government
evidently failed to meet these obligations hence; it was not well placed to address diversified
concerns of the colony.
68 Ibid. 69 NAZ, S3456/2 Federation of Rhodesia and Nyasaland, Board representative of Southern Rhodesia, federal report on pensions
1956. 70 Ibid.
19
In summary, Government employees were the first to be afforded some form of security by being
granted pensions intended to provide them with social protection. It was based on compensation
for service rendered to Government. There were however some challenges in distribution of
pensions such as delays in payments. The pension system was not attractive to workers partly
because the provident fund was not reliable. The lump sum awarded was by far inadequate to carter
for basic social and economic needs. Racial discrimination by the BSAC led to a systematic way
of excluding Africans and Coloureds from the pensions of the Government. However, exception
was given to Africans who served in the Rhodesian African Rifles or Native Rifles Regiment, who
received some pensions. Although Africans from this section of the Government received
pensions, the amount of 10 £ was not enough to be considered sustainable. The pension Office
which was directly involved in the management of pensions, faced several challenges. Internally,
the Office was polluted with lack of transparency in accounting pensions returns. This led to delays
in payments and selective issuing of pensions. On the other hand external factors also contributed
to the malfunctioning of the provident fund. For example, the war, was a major world event which
affected the smooth functioning of the pensions.
20
SECTION 2
PENSIONS SINCE THE RESPONSIBLE GOVERNMENT 1923 TO 1949
This section will examine the evolution of the pension system, from provident pensions to pension
fund. The evolution of pensions was basically influenced by change of Government in 1923. The
change of Government affected the pension system both positively and negatively. Among the
positive impacts caused by change of Government include, the increasing involvement of
Government in social security matters, the increasing number of pensioners accepted by the
Government, the reformation of pension arrangements, and the pension system became more
formal. Urgent attention was given to members of the Pioneer Column, and members of the armed
forces from with lower ranks who had gone for more than 10 years without pensions. However,
the negative part of the transition of Government in 1923 is centered on the Acts passed by the
Government, which led to the legitimate exploitation and exclusion of African workers from
pension benefits. Such Acts as the Industrial Conciliation Act of 1934 and the Old Age Pension
Act of 1936.
In this section bring to attention the reasons for the inclusion of Africans into the pension fund
system in 1949. The conclusion is that, Africans were included in the pension fund for political
reasons rather than economic. Hence, their inclusion did not mean much to their social and
21
economic welfare because, the majority of these pensioners still struggled to make ends meet
during their retirement period. The struggling of these African pensioners was all based on the low
rates of payments being made by the Government.
2.1: RECONSIDERATION OF PENSION POLICY BY THE RESPONSIBLE
GOVERNMENT
In 1923 only an estimated 7% of Africans were employed in the private sector, by 1941 nearly one
third of the Southern indigenous Africans were living as employees (or dependence of employees)
in European farming areas or in the urban areas.71 The European population, was the majority,
employed by Government since the coming into power of the civil service. The European, covered
a relatively wide range of activities and was staffed by a well organised civil service.72 The
administration had been built up by the British South Africa company in order to further the
development of the territory. The transition of Government from BSAC to Responsible
Government was a significant political change which led to the restructuring of Government
policies. In light of the pension system, 1923 marked a major watershed for the future of the
Pension system in Southern Rhodesia.73 Before the Responsible Government, the option to
Pensions was based on provident funds, paid in form of lump sums.74 In 1924, after a series of
parliamentary bills, the Government opted for a pension fund system which was aimed at
redressing some of the failures of the previous Government. The pension fund was introduced
71 D.J Murray, The Governmental System in Southern Rhodesia: Oxford, London press, 1970. P, 12. 72 Ibid. p, 13. 73 Ibid. p, 15. 74 NAZ, S3421/2, Pensions Office, Pension schedule for 1936-49, 1949.
22
through the passing of the Public Service Act of 1924.75
The Public Service Act of 1924 was a large document which included several aspects of
Government policies. Part of the document evolved around the area of pensions for the civil
service. The Public Service Act of 1924 provided provident pensions for Europeans employed by
the Government on the basis of a monthly or annual rate of pay. It also outlined pensions or other
benefits on retirement or discharge from Government. However, the provident pension was later
changed to a Pension fund in September of 1924.76
According to the acting Secretary of Southern Rhodesia Public service Association S.C
Hinde, ‘a provident fund for European Government employees and those not already
entitled to pensions was a past failure because of its inconsistency and unreliability’.77 The
introduction of the pension fund was far from simple and required considerable technical
and diplomatic skills. All the Acts and regulations governing the civil service and other
public service pensions had to be standardised.78
This required delicate interdepartmental negotiations. For example, the Government had to
reconsider the base-line for each existing group of pensioners. The government had also to
reconsider the real value of pensions at the time of retirement.79
At the inception in 1924, the pension system was based on a Defined Benefit pension plan, where
a worker was guaranteed to receive an actual salary from the Government. A visiting social welfare
75 NAZ, S2619/47, Pensions Office: Department of Internal Affairs, Government Notices, No 864, 1949.
76 NAZ, The statute law of Southern Rhodesia Revised Edition 1939, Vol.11. 77 NAZ, pension fund Investment Board 1926-1941. 78 Ibid. 79 NAZ, S3456/2 Federation of Rhodesia and Nyasaland, Board representative of Southern Rhodesia, federal report on pensions
1956.
23
expert talked of the pension system in Southern Rhodesia, as one of the most generous facilities
one can ever get in a life time. This complement was made after the introduction of the pension
fund in 1924.80 The Defined Benefit plan was made on periodic contributions to the Pensions
Investment Board which ensured that, funds were available to meet those who retired in time. An
Annuity of 250 was considered an amount matching with the inflation rates from the period 1924
to 1928. The Government sought to establish the position where all workers were to benefit from
the Defined Benefit Scheme by the end of 1926.81 The normal age of retirement for workers of the
Government was not uniform, for example, teachers were to retire at the age of 65, the same
applied to nurses and clerks. Members of the police force were to retire after serving 20 years on
active duty. However, the amount of accrued benefits was fixed at 250£ which was to be issued as
an annuity by the Government.82
Since married women were employed as temporary employees in the Government, the pension
benefit plan remained under the section of provident funding. The payments of the provident
pensions to married women from 1924 to 1927 was made through first an all lump sum payment
and then monthly payments of 5 £.83 In 1928, there were shifts made by the pension Office, cash
lump sums issued to married women were abolished because there proved costly. The calculation
of accrued benefits were made based on the percentage of contributory rates made from actual
salaries.84 The low rates of payments which were made to women serving in the Public Service
could automatically generate low pension returns. 85
80 NAZ, The Herald News Paper, The visiting expert on social services, 1924.
81 NAZ, pension fund Investment Board 1926-1941 82 Ibid. 83 NAZ, MS 1045/13, Pensions: Public service Association, 10/10/42. 84 Ibid. 85 This assumption is based on the criterion used to calculate the total amount of the cash lump sum.
24
It was not long before the Defined Benefit plan was terminated. The Government was finding it
difficult to meet these payments every month. In other words, the Defined Benefits scheme was
costly to the Government.
According to the Secretary of the Pension Investment Board, in 1927: ‘We are confronted
by two realities, the first is the financial problems facing the pension benefit plan as from
1924 to present. For more than three years the DB provided an important safety to
thousands of pensioners, however defined benefit plan becomes insolvent or is
terminated’.86
The Pension Office reported that, the Defined Pension plan ran into a deficit of 113 000 £ and
they learned that the problem would continue to grow in the months ahead.87 Because of this
increasing deficit, the Government of Southern Rhodesia opted for yet another pension plan, the
Defined Contribution Plan. Resorting to a Defined Contribution (DC) was seen as an answer to all
the problems which faced the Pension office.88 In the post 1949 period, one of the board members
of the Federal Pension Board representing Southern Rhodesia argued for a continuation of the DC
plan as a better way of managing pensions.
86 NAZ, pension fund Investment Board 1926-1941. 87 Ibid. 88 NAZ, S3456/2 Federation of Rhodesia and Nyasaland, Board representative of Southern Rhodesia, federal report on pensions
1956.
25
TABLE 1 .SHOWING AMOUNT OF ANNUITY, AND ACCRUED BENEFITS FROM 1924
TO 1928 UNDER THE DEFINED BENEFIT PLAN OF SOUTHERN RHODESIA.89
Amount of
Annuity per
Individual
250 £ 250 £ 250 £ 250 £ 250 £
Years 1924 1925 1926 1927 1928
Total
Number of
Pensioners
846 2482 2632 2811 3005
Total
Amount of
Accrued
Benefits
211500 £ 620500 £ 658000 £ 702750 £ 751250 £
Pensions recorded from 1924 to 1928 showed that, the total amount of accrued benefits rose from
89 NAZ, Pension office statistics as from 1924 to 1928, the table was used by the Secretary of the Pensions Office to illustrate the
expenses of the Defined benefits scheme, 1928.
26
211500 to 751250 £.90 The failure to meet these payments in time, led to an increasing amount of
deficit. In 1928 alone, the Government had an outstanding deficit of 113000 £.91 This forced the
Government to change the pension plan in 1928.
After the termination of the DB plan, the Government resorted to the DC plan as a better option to
pensions in Southern Rhodesia. The introduction of the defined benefit plan was strengthened by
the need to counter financial constrains through expansion of investment asserts in order to acquire
profits.92 A bargain was reached between the Government and its employees. The Government
contributed 3% to the pension contribution. Workers were also contributing 3% from their monthly
salaries from 1928 to 1956.93 The pension system which followed after the declining of the DB
characterised the DC plan.
The call by the Minister of Internal Affairs for the need to consider pensions for members of the
Pioneer column was given attention too by the Government. It was hoped that, the civil service
pension fund scheme was to include members of the pioneer column of 1890 and 1893 on the
pensions. According to the Minister of Internal Affairs in 1933,
It was wished to draw your attention to the fact that the previous Government made
a small temporary grant a dole for members of the 1890 and 1893 column, and was
only to be given for periods and only if they were in dire want. Now that there are
only 3 men left alive in the country...propose that they should be shown some
special recognition for their past service, by granting them a life- pension at a
90 Ibid. 91 Ibid. 92 NAZ, S3456/2 Federation of Rhodesia and Nyasaland, Board representative of Southern Rhodesia, federal report on pensions
1956.
93 Ibid.
27
generous nature.94
However, according to the Pensions Office, “pensions in the strict sense were not
payable to pioneers, the Government grants being confined to assistance,
sometimes temporary and sometimes permanent to such pioneers in dire need of
financial assistance was confined to those pioneers whose lives had been spent in
Southern Rhodesia.”95
In the case of these three pioneers who were represented by the Minister of Internal Affairs they
were, by 1933, living in the free orange state in the Union of South Africa. Thus, the government
rejected the proposal to include them in the pension fund system.96
It is important to note that, the pension fund was devoted exclusively to members of the 1890/93
columns as defined in Section 2 of the Clayton Trust Ordinance of 1918. The Responsible
Government sought to revise some failures of the company rule by providing recognition of
pioneer members.97 For example, the pension fund since 1933 benefited the likes of pioneer corps
under major Frank Johnson who occupied Mashonaland in 1890, the BSAP under Colonel Penny
father, who came up to police Mashonaland in 1890 and the 1893 column who took part in the
Matebeland war of 1893.98 However, the Government reversed its stands on the pioneer grants as
a result of the resolution adopted by the parliament of 6th November in 1930.99 However, through
a series of negotiations the Government finally accepted the proposal to include members of the
94 NAZ, S3421/2, Pensions Office, Pension schedule for 1936-49, 1949. 95 NAZ S3421/2, Pensions Office: The Secretary of Internal Affairs writing on Pension schedule for 1926-49, 1949. 96 Ibid. 97 NAZ, MS 1045/13, Pensions: Public service Association, 10/10/42. 98 Ibid. 99 NAZ, The statute law of Southern Rhodesia Revised Edition 1939, Vol.11.
28
Pioneer column on the pension fund. Secretary N.R Bertrar of Internal Affairs issued a statement
to the pension office, ‘…I am directed by the Minister to inform you that the Government have
agreed that with effect from the 1st October grants to Pioneers should be paid”.100
SUB SECTION 2.1:
WOMEN PENSIONS IN THE CIVIL SERVICE
The Old Age Pension policy in the colony had a significant gender dimension. Despite the fact
that, women comprised the majority of people in dire need of Pensions. The access to contributory
pensions was well below that of men.101 Since women in Southern Rhodesian Civil Service
received lower pensions, they failed to meet the (two thirds) required to obtain a full pension
benefit from the Government of Southern Rhodesia.102 Single women were at a more
advantageous position than married women. The colonial policy regarded married women as
temporary workers because of the marriage bar; their rightful place was in the home.103 The system
of provident pensions continued to apply to married women though the Government had adapted
a new pension fund facility. Widows in the colony were again made vulnerable because of the
pension policy which failed to address their position in the pension system. Hence, gender
discrimination was present in the pension fund system.
Southern Rhodesia had a fragmented social security system offering pension insurance as its main
100 NAZ, S3421/2, Pensions Office, Pension schedule for 1936-49, 1949. 101 E Kaseke, ‘Social Exclusion and Social Security: The Case of Zimbabwe’, Harare: University of Zimbabwe. P,12
102 NAZ, S2619/47, Pensions Office: Department of Internal Affairs, Government Notices, No 864, 1949. 103 U Kufakurinani, White Women and Domesticity in Colonial Zimbabwe.
29
stream schemes and formal social security was preserved for whites.104 The pension fund system
provided protection to a relatively small number of people in the formal employment of the civil
service. African women were not employed by the Government prior to 1950.105 This in turn meant
no pension benefits were on record for African women. However, the bias of colonial
administration slightly tolerated the employment of white women into the civil service and also
defined their pension benefits. The allocation of pensions seemed to discriminate women from
equal benefits with men.106
Women were forced to retire at 55 under the regulations of the Government. Thus unable to qualify
for the maximum pension (two thirds). According to Gundral, secretary on women’s pensions,
noted that, “In the case of men and women who entered the service at the age of 22, the men would
receive a better pension by one twelfth, and in all probability, on a such high salary”.107
Again assuming that a female school leaver at 17 joined the service and remained in it until she
retired, the pension she received would be 38-60, a male joining under the same conditions would
probably be able to live on that pension without having to augment it by further work.108
The government fostered conditions of service to nurses and teachers pensioned by the
government. Free transport services were granted to help accommodate the low pension rates.
According to Dawson, General Secretary of Rhodesia Teachers Association, ‘the nurses
104E Kaseke, ‘Social Exclusion and Social Security: The Case of Zimbabwe’, Harare: University of Zimbabwe. Seminar Paper,
2001. P, 8. 105 Ibid. 106 U Kufakurinani, Negotiating Respectability: White women in the Public service of Southern Rhodesia, Harare: University of
Zimbabwe. Journal of Social Science, Vol. 1, 2012. P, 2.
107 NAZ, S2619/47, Pensions Office: Department of Internal Affairs, Government Notices, No 864, 1949. 108 Ibid.
30
pensioned from the civil service and who were not married were eligible to receive free
transport services from the Rhodesia Railways and the Government would cover these
services.109
However, still with a coverage of transport allowances, 10 £ was not adequate enough to cover up
all the expenses in Southern Rhodesia. The Federation of Women’s Association always called for
an increment of the pension rates especially for women.110 This at times gives the impression that,
conditions of all women in the civil service were being improved. In the actual fact, the association
was also affected by racial elements within the structure of the system.
The unequal distribution of pensions based on gender, had a negative impact on women who had
retired from the civil service. Among some of the challenges they faced, was that, most women
who reached retirement faced challenges to acquire better medical services. Delays in payments
and low rates of payments were some of the pin pointed problems.111 The amount received by
women from 1933-1945 ranged from 10 £ to 12 £ per month and was issued based on the terms of
service according to the department’s regulation.112 10 £ per month was not enough to sustain an
old retired women in Southern Rhodesia. Inflation was not matching with the Government fixed
rates, this was a major challenge to women in Southern Rhodesia. The impact was that, many
women who retired were at risk of failure to cover up their medical expenses. The standard of
living trend evidently dropped as one was no longer in active service.
Government laws restricted them to enter the urban areas. According to Kaseke, “...the demand
109 NAZ, S2619/47, Pensions Office: Department of Internal Affairs, Government Notices, No 864, 1949. 110 NAZ, S3456/2 Federation of Rhodesia and Nyasaland, Board representative of Southern Rhodesia, federal report on pensions
1956.
111 NAZ, Debate on pensions: Parliamentary library of Southern Rhodesia 1928. 112 Ibid.
31
for male workers in the wage sector, coupled with the belief that women’ s role lies in child bearing,
had led to extreme imbalance in access to services…”113 This explains why there were few women
in the formal employment. The Old Age pension Act excluded Africans from the pension fund.
Although white women were receiving low rates of pensions from the Government, however, they
were better off than African women who were not included in the pension fund. This had a negative
social and economic impact on the welfare of African women. The most heat hard were those
widows in the rural areas.
SUB SECTION 2.2
THE ROLE OF GOVERNMENT POLICIES ON PENSIONS SINCE 1937
The general responsibility of Social welfare work from 1937 to 1949 rested on the responsibility
of the department of Internal Affairs, except where African were concerned, the latter falling within
the purview of the department of native Affairs.114 Other departments concerned were, department
of Justice District courts which, apart from court work, assisted in the investigation of applications
for Old Age Pensions or other forms of social assistance and in the distribution of relief, and the
treasury, which was responsible for Old Age and Disability pensions.115 It was the Government’s
responsibility to see to it that, social welfare of its citizens was in a healthy condition which
addressed social concerns of the workers serving in the civil service. It also aimed to determine
what constituted the standard of living in Southern Rhodesia. However, the laws which governed
113 E Kaseke, ‘Social Exclusion and Social Security: The Case of Zimbabwe’, Harare: University of Zimbabwe.
114 NAZ, MS 1045/13Public service Act Bill of 1931. 115 Ibid.
32
the social services had failed to do justice to all sections of the Rhodesian society. Several
commissions of inquiry were set up with the objective of investigating the standard of living for
the people of Southern Rhodesia. The majority of the results of these inquiries showed that, the
level of social service that appealed to the society were still far to meet the concerns of those who
were on retirement.116 For example, a Commission of Inquiry on the Social Welfare of Coloreds,
came up with evidence of deteriorating social welfare for the Old Aged in the Coloreds society in
Southern Rhodesia. Moreover, Africans in general were still not meeting the minimum standard of
living.117
In June 1941, the Minister of social welfare services appointed a committee to work on the
reconstruction of social welfare programs. The terms of reference required the committee, “...to
undertake with special reference to the inter-relation of the pension scheme, and a survey of
existing national schemes of social Insurance and allied services including Workmen
Compensation and making recommendations...”. 118
According to the survey carried out in 1911, the first Pension Act, giving non-
contributory pensions subject to means to test at the age of 70, was passed in 1908.
In 1924 came the Act which started contributory pensions for old age, for widows
and for orphans. Every person in the working age was paying a single contribution
by a stamp on a single insurance document each week or combination of weeks.
Further investigations into the nature of pension schemes in Southern Rhodesia came
in 1943. The appointment of social security officer Mr. T.F Russell for the colony by
the Prime Minister was important.
116 NAZ, Commission of Inquiry on the social welfare of coloreds in Southern Rhodesia. 117 Ibid. 118 NAZ S3421/2, Pensions Office: The Secretary of Internal Affairs writing on Pension schedule for 1926-49, 1949.
33
According to the findings of the Social security officer for the colony, there was need for the
Government to improve the conditions for the retired by increasing the amount paid. The majority
of the retired workers showed that, 6 £ paid to civil servants from 1936-1943 was not adequate.
The majority of civil servants were still not meeting the minimum standard of living.119 The statute
law of Southern Rhodesia was a cosmetic piece of legislation. In 1939, the revised edition chapter
71, argued for the colored and “native” Government employees pension.120 However, this only
came into effect in the period after the Second World War. It gave an impression that, the law was
being implemented as it stated that, it provide for the payment of gratuities and pensions to
coloreds and “natives" employees of the Government. Pensions for Coloureds and Africans only
came after the end of the Second World War.121 There was pressure from the department of war
pensions; it called upon the Government to give recognition of service to those members who had
served in the Second World War.122 The call included Africans and Coloreds who had been
sidelined by the Government for long. The need to include Africans on the pension scheme had a
political motivation. The Africans who served in the Second World War, returned with high spirit
of political reforms in the colony. The Government in 1949 was forced into submission, to include
African workers employed by the Government into the pension fund. The Amendment of the
Principle Act was the pillar towards the recognition of Africans to benefit from the Government
Pension Fund. However, as much as the Government took steps in including Africans in the
pension scheme, Europeans were on the priority of secure benefits. Any White Rhodesian who
served in the Second World War, was receiving a monthly pension greater than that of Africans.
119 NAZ, MS 1045/13, Pensions: Public service Association, 10/10/42. 120 NAZ, The statute law of Southern Rhodesia Revised Edition 1939, Vol.11.
121 NAZ S3421/2, Pensions Office: The Secretary of Internal Affairs writing on Pension schedule for 1926-49, 1949. 122 J. Timothy, No Insignificant Part: The Rhodesia Native Regiment and the East Africa Campaign of the First World War.
Waterloo, Not: Wilfred Laurier University Press, 2006. P, 43.
34
According to the additional pensions supplementary of 1960 for members of the uniformed forces,
Europeans received 57 £ per month, Asiatic and coloreds 24 £ and 16 £ for Africans.123
From the general assumption of Rhodesian citizens, it was anticipated that, Government would
aid retired workers with a reasonable pension which could help sustain their living conditions,
however, this was not. The Responsible government as evidenced by the comments from both high
ranking Ministers of the Government, and the workers, the pension fund was not attractive. Hence,
it is safe to argue that, the pension fund system introduced in the early 1920s did less to redress
the challenges which were faced by the Company Government. Among the major challenges,
include, the failure to adequately distribute pensions to all civil servants. The amount issued to
workers was not enough to meet the needs of the workers during retirement. Africans were by far,
not part of the focus. No record shows Africans directly receiving pension from the government of
Southern Rhodesia from 1923 to 1949.
2.3
SOCIAL AND ECONOMIC STATUS OF AFRICANS WHO HAD RETIRED FROM THE
GOVERNMENT
When Africans retired from the Government of Southern Rhodesia, life changed from bad to
worse. Already during active service, Africans were given low wages which they always
complained about. By the time of retirement, no pension arrangement was designed by the
123N Sibaningi, ‘The Origins and Development of Contributory Pension Schemes for Africans in the Rhodesian Railways from
1942-1980’, University of Zimbabwe, 2009.
35
Government as stipulated by the Old Aged Pension Act of 1936, and the Industrial Conciliation
Act.
An aged African man on average in the rural areas of Gutu was in possession of at least 5 cattle
excluding those acquired through bride wealth.124 Moreover, the majority of these households were
in possession of a plough and other subsistence agricultural material necessary for agricultural
production. Subsistence agricultural production was the main economic activity in Gutu for those
not employed in the formal sector in general and in the government in particular.125 However,
coming to those who had retired from the Civil Service, it was shocking to realise that, the workers
who returned to the village could not afford to buy at least 5 cattle from their pensions.126
The retired workers who returned to the village were known as “majon” meaning those from the
town. The term “majon” was at times used in referring to locals who once worked in South African
mines.127 It was a mocking name given to those who had spent almost half of their life in the urban
areas only to return empty handed. But this does not exclusively mean, all those who worked in
the towns, returned empty handed. Some retired workers returned with a fortune for life, they at
times employed people in their farming fields, clearing the land for new farming fields and creation
of small gardens.128
The retired workers in most cases were forced to resort on ‘Maricho’ temporary peace jobs as a
means of survival in the rural areas. Temporary peace jobs in local farming fields were used an
124 Interview with Mr. Tobaiwa, Dec 2015. 125 Ibid. 126 Ibid. 127 Interview with, Mrs. Mjanganja, 2015. 128 Ibid.
36
escape to poverty in the rural areas. It became a permanent way of generating income for these
retired civil servants.
However, age was the same factor which had forced them to retire, there were no longer able to
work efficiently. Although the system of temporary jobs in the farming fields ‘maricho’, was
generating alternative means of income for these pensioners, the practice was not sustainable.129
The majority of these men only worked for three to four years before they completely retired from
any village work. With a complete retirement from any economic activities due to old age,
purchasing power was officially lost. They were no longer able to carter for their medical expenses
and other important services.
In terms of education for the Africans, many children failed to go to school as a result of financial
constraints. The vast majority of workers could not afford to pay school fees for their children
because of low wages. During retirement they could not talk of education because there was no
pension provided by the government. During the period 1937 to 1949, the majority of the children
were not going to school basically as a result of inadequate income and the failure by the
Government to offer education for Africans.130 If pensions were issued the same way as with the
European case, African children could have had access to good education.
Overall, retired workers were destined to return to their rural areas. The failure by the Government
to issue pensions for, helps to explain how this shaped their economic activities in the rural set up.
The quest for temporary jobs in the rural became a norm for most retired workers. Temporary jobs
129 Interview with Andrew Munyanyiwa, 2015. 130
D.G Clarke, The Economics of Urban inequality in Rhodesia Considerations on the Langley, Written and Wright Report, 1972:
Conference on African Influx and Urbanization in Salisbury: p, 22.
37
in the rural areas were viable means of in- come generation. However, age undermined these retired
workers, and social and economic conditions worsened as they failed to pay for their medical
health and education for their children.
SUMMARY
As shown, Southern Rhodesian Government Pension fund was established under the Principle Act
of 1898, and later revised under the Public Service Act, Chapter 68 of 1924. In 1928, non-
contributory pensions for Old Age, for widows and for orphans were granted by Act of parliament.
Eligibility was extended to Asians and Coloreds in 1936 with the passing of the Old Age Pension
Act. Pensions for Africans were only introduced in 1949. The major reason for the inclusion of
African workers in the pension scheme was more out of political considerations than other factors.
After the end of the Second World War, pressure mounted from Africans employed in the
government negotiating a settlement which could include them in the pension fund. Moreover,
there was a group of African Riflemen which served on the Front line of the allied forces in the
Great War. This elite group directly demanded recognition of life time compensation which, when
calculated, reflected an annuity for Africans.
In section B, the statute law of Southern Rhodesia revised edition 1939, volume 11 chapter 71
argued for the payment of gratuities and pensions to the Coloreds and African employees however,
the implementation was gradual. The major factor which acted as a barrier to recognition of
Africans was basically based on other parallel Acts of the government. The Industrial Conciliation
Act of 1934 disregarded Africans as government employees, hence they had no right to demand
better working conditions. Africans were not defined as employees and therefore could not
38
organise or be party to any forum that determined employment conditions’. Another factor which
explains their exclusion was based on the recruitment strategy; Africans employed by the
Government were not permanent employees. Hence there was no defined benefit plan set for
African workers.
CONCLUSION
At the inception, the government of Southern Rhodesia then BSAC did not regard pensions as a
priority to social security matters. Instead the Government issued pensions as differed payments
for preferred workers. The Southern Rhodesian Government Pension fund was established under
the Principle Act of 1898. In 1924 a Non-Contributory pension for Old Age, for Widows and for
Orphans was granted by act of parliament through the passing of the Public Service Act in 1924.
Eligibility was extended to Asians, and Coloreds in 1936 with the passing of the Old Age Pension
Act. However, Pensions for Africans were later recognised in 1949 after the Amendment of the
Principle Act. During the time of BSAC there existed some form of compensation paid to retiring
workers in form of a dole similar to pension arrangements, but divorced from formal benefits of
the Government. Apart from retiring workers, there was a pension which aimed to carter for
workers injured at work. This type of pension was unique in its structure because, once a worker
was injured, he or she was given a life time compensation of 250 £. The Public service Act of 1924
was an important piece of legislation which stipulated the need to introduce pensions for the Civil
Service. According to the Act, it provided for a provident fund for Europeans employed by the
Government on the basis of a monthly or annual rate of pay and outlined benefits on retirement or
39
discharge.
In terms of revenue and financing of the pension fund, the Southern Rhodesian pension system
was first based on noncontributory scheme which later transformed into a contributory scheme by
1941. Several Government Departments were involved in the administration of Pension services.
The Department of Internal Affairs, Ministry of Finance and the Department of Social Welfare
were the most influential sectors responsible for the management of pension scheme. Among the
first people to benefit from the Civil Service pensions, were members of the pioneer column, ex-
combatants of the First World War, teachers, nurses, widows, and ex-combatants of the Second
World War. At one point, Africans from the Native Rifles Regiment were also included in these
pensions but with lesser value and consideration.
Public service pensions in Southern Rhodesia had been restricted to whites because Africans and
coloreds in wage employment were not considered civil servants during this period in question,
even though they worked in public institutions. By 1949 Africans were included on the pay role
of pensions. The major reason for recognising pensions for Africans came as a result of
increasing political pressure which came from radial revolutionary solders of the African Rifles
from the Second World War which called for racial equality.
40
BIBLIOGHRAPHY
ARCHIVAL MATERIAL
NATIONAL ARCHIVES OF ZIMBABWE
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NAZ 3/7/18, the secretary of Southern Rhodesia Civil service Council, 1922.
NAZ 3/7/18, the secretary of Southern Rhodesia Civil service Council, 1924.
NAZ A/3/3/6 Comments made by a visiting social welfare expert Interviewed by the Herald,
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NAZ Commission of Inquiry on the social welfare of coloreds in Southern Rhodesia.
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41
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INTERVIEWS
Interview with Mrs. Mjanganja, 12 December, 2015.
Interview with Andrew Munyanyiwa, 24 December 2015.
42
Interview with Mr. Tobaiwa, Gutu, 12 Dec 2015.
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