by Staff reporter
Government has provided the initial seed money for Government Employees Mutual Savings Fund (GEMS) and deductions from members will commence this February.
In a Press Statement yesterday, the Public Service Commission revealed that the Treasury had already provided an initial ZWL 75 million as seed capital for the GEMS Fund adding that monthly contributions from willing Government employees at 2.5 percent of gross salary, will now complete the launch of the Fund.
“After an initial 3 months accrual of contributions, members wishing to access short term to medium term loans can submit applications through their Heads of Ministries and Department. A nominal lending rate of 10 percent per annum has been set, with the expectation that lending threshold will range between that rate and 15 percent per annum depending on the actual amount applied for and the desired repayment period,” reads part of the statement.
The Commission highlighted that membership is entirely voluntary and those not wishing to participate can exercise their right to opt out of the Scheme. The Commission added that Government workers other than Civil Servants can be co-opted into the scheme by applying to the Secretary of the Public Service Commission.
According to the statement, Government has appointed a steering committee which in addition to the Public Service Commission includes members from the Office of the President and Cabinet as well as from Treasury to ensure that GEMS Fund achieves its objective.
Government in February 2020 decided to establish the GEMS Fund with a view to mobilising mutual savings for Government employees.
The GEMS Fund according to the statement, aims at benefiting Government employees during the course of their employment and into their retirement by offering loans and similar products at concessionary rates. The GEMS Fund will be managed and grown through prudent investment strategies that support the enhancement of the livelihoods of Civil Servants through affordable loans for home improvement, solar electrification, borehole installation, property acquisition, livestock rearing as well as short term requirements like school fees.
