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Friday, January 27, 2023

NAPSA partial withdrawal of funds will allow investment in various businesses

EconomyNAPSA partial withdrawal of funds will allow investment in various businesses

Government says the National Pension Amendment Bill of 2022 is important because once it is passed by Parliament it will give citizens an option of partial withdrawal of funds to invest in various businesses.

Mpika District Commissioner David Siame says after retirement, employees face various challenges in meeting basic needs such that it becomes difficult to invest in income generating activities hence the partial payment will help sustain their lives.

Mr. Siame disclosed this to the Zambia News and Information Services (ZANIS) in an interview in Mpika today.

He added that once the National Pension Scheme Amendment Bill of 2022 is amended people will have money to help them invest in different businesses and in turn create employment.

“The Amendment Bill is important because once it is passed by Parliament it will give people an option of partial withdrawal for specific purposes including investment in business, this will also help them venture in income generating activities thereby reducing poverty,” said Mr Siame.

And National Pension Scheme Authority (NAPSA) Head of Corporate Affairs Cephas Sinyangwe says the Bill to reform NAPSA has been tabled before parliament and the company awaits its outcome.

Mr Sinyangwe said that the National Pension Scheme Amendment Bill will allow NAPSA to grant waivers of penalties on delayed NAPSA contributions and it will also allow an option to claim for “age benefits” by a member of the fund.

“The Amendment Bill will allow NAPSA to grant waivers of penalties on delayed remittance of contributions and members will also be able to get a partial payment or withdrawal of funds without having to wait until they reach retirement age,” said Mr Sinyangwe.

He has also appealed to employers to be remitting workers’ contributions to NAPSA adding that members should also ensure that their contributions are remitted by their employers.

“Remittance of NAPSA returns is law, and failure to comply is tantamount to committing an offence which is punishable by law,” said Mr Sinyangwe.

Mr Sinyangwe added that in the event that the employer does not remit the contributions to NAPSA, the employees will be deprived of their pension benefits.

Meanwhile, The Tanzania Zambia Railways Authority (TAZARA) Workers Union president, Bedwin Malowa says the move by government to allow for a partial withdrawal from NAPSA is welcome as it will allow for workers to get their money before retirement.

“Some workers die before they get their benefits, hence if one is able to get their benefits before retirement it will help them have access to that money,” said Mr Malowa.

Mr. Malowa has also expressed concern over the non-remittance of contributions to NAPSA by the employers at TAZARA and has appealed to the employers to ensure that contributions are remitted for the benefit of the workers.

7 COMMENTS

  1. What can a DC understand on the issue….and one from far flung Mpika. The chap has not even been briefed by cabinet but he is here defending something he does not even understand.
    Under the NPF there is a system called age benefit which allows you take money out. Some people I know have been paid up to 15 thousand kwacha lump sum and nobody has invested in any business apart from buying plasma tv sets.
    Please do not get me wrong, I am only stating the reality on the ground.

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  2. “NAPSA partial withdrawal of funds will allow invest in various businesses”!
    Who is the author of this article? Is he/she sure that those investments or small businesses(not the same thing) will succeed?
    Read my lips, this will backfire or not reliable as it is not based by best practice anywhere!
    This partial withdraw is driven by emotions ,desperation and appeasement in my view.
    Watch this space.

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  3. Here are the 4 main points GRZ wants to repeal the NAPSA act, already at First Reading.
    1. Napsa charges 20% rate. (This is what must be reduced).
    2. Some companies already have penalties arising from charges. (GRZ is asking Napsa to surrender those amounts).
    3. Early claim on age benefit. (Government wants Napsa members to, one off, withdraw up to 20% from the Fund).
    4. Provide for Matters With The Foregoing??? What dies this mean? Vague.
    Looking at these 4 items, you will see that they are diverse and clamping them in one Bill may make some less vital elements affect some progressive articles. Does this Mpika DC, David Same understand the implication of such a bill? Maybe he does.

  4. This is very recommendable but at the same time we should have been consulted on the percentage , i feel the promise and what am seeing on the ground is very different we are getting a raw deal, under the previous regime Napsa had invested using our money and what have we benefited,literally nothing and now as per expectation we thought we would strike an agreement on the percentage , none of that or even different thresholds would have saved us well , its so painful .if we talk about retirement package we`ve seen our senior citizens cry helplessly and we dont want to take that route .Mr President Sir 50% is a better deal please.

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  5. As the South African situation has shown, people generally just waste any early withdrawals and will just be poorer when they finally retire.

  6. One thing coming from the NAPSA amendment bill. The release of funds locked up in the NAPSA coffers (which they dont even know what to do with) will boost spending, regardless of whether someone buys kachasu or plasma Tv. This is good for the economy instead of Millions locked in various banks making money for even foreign commercial banks. I only sympathize with my friends working for quasi government institutions because they are the number NAPSA defaulter and there will be very little to claim.

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