Secretary to Cabinet Simon Miti has proposed that Article 189 on the payment of Pension benefits promptly and regularly in the Constitution of Zambia Amendment Bill Number 10 of 2019 should be removed completely.
Speaking before the Parliamentary Select Committee on Constitution Amendment Bill Number 10 of 2019, Dr MITI said there is urgent need to reform the public pension schemes to make them sustainable.
He said the two Pension schemes, the Public Service Pension Fund (PSPF) and Local Authority Superannuation Fund (LASF) have design challenges.
Dr. Miti explained that the pension schemes are designed to pay out more than the contributions made by the employee and the employer.
He stated that the Government has already embarked on a comprehensive reform process of the public pension schemes to make them sustainable.
And Dr. Miti has disclosed that currently PSPF and LASF have huge deficits estimated at 46.2 billion Kwacha and 4 billion Kwacha respectively.
Dr. Miti was responding to Nalikwanda Member of Parliament Geoffrey Lungwangwa who wanted to know if the Government is engaging the unions who have said that Article 189 should be maintained.
Lusaka Central Member of Parliament Margaret Mwanakatwe also wanted to know how long the new pension reforms will take.