President Hichilema assents to National Pension Scheme Bill

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President Hakainde Hichilema has today assented to the National Pension Scheme Bill which provides an option to claim for one off-age benefits by a member under the prescribed minimum pensionable age of 36 under the existing funds.

According to a press statement released by Presidential Spokesperson Anthony Bwalya , Tuesday evening, the Bill has also revised the penalty rate for delayed payment of contributions from 20% to 10% and provides for a waiver of penalties arising from delayed payment of contributions.

” The move by the Head of State is a fulfilment of the United Party for National Development UPNDs 2021 election campaign promise to undertake crosscutting reforms at the National Pension Scheme NAPSA and enhance value for money for the contributors, ” says Mr. Bwalya.

The National Pension Scheme (Amendment) Bill of 2022 was first presented to the National Assembly for debate this October 2022 and has been assented to by the President after passing all the readings.

Cabinet recently approved in principle the introduction of a Bill in Parliament to amend the National Pension Scheme Act No 40 of 1996 so as to provide members of the Scheme an option to access part of the contributions before retirement.

Chief government spokesperson Chushi Kasanda in a Cabinet statement revealed that President Hakainde Hichilema has made a policy pronouncement on the need for partial access to pension contributions to members of the National Pension Scheme.

4 COMMENTS

  1. From what I have followed this has nothing to do with the current NAPSA arrangement of partil withdraw. Its about the winding up of the erstwhile ZNPF -Zambia National Provident Fund which was “Benefit defined scheme” a forerunner to NAPSA which is contribution defined benefit scheme. ZNPF which ended in the year 2000 is draining NAPSA funds as it has run out of its funds and may continue till 2034 at which K7Billion would have been paid.
    Now, it questionable that, this measure will limit the spent to about K5billion in a couple of years. paying K5b now is more than a K7B payout by 2034. Its time value of money. its called financial literacy. be my guest.

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