Monday, June 17, 2024

National Pension Amendment Bill will give workers an option of partial withdrawal of funds to invest

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

Zimba District Administrative Officer (DAO) Gift Hajongola says after retirement, employees face various challenges in meeting basic needs.

Mr Hajongola cited that workers find it difficult to invest in income generating activities therefore partial payment will help sustain their lives.

The DAO disclosed this to the Zambia News and Information Services (ZANIS) in an interview in Zimba today.

He added that once the National Pension Scheme Authority (NAPSA) Amendment Bill of 2022 is amended, people will have money to help them invest in the economy and in turn create employment opportunities for the people.

“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 businesses.

People will venture in various income generating activities thereby reducing poverty especially at household level,” said Mr Hajongola said.

A Civil servant James Hambayi, said partial withdraw will enable workers not to be abused by financial lending institutions in the country that are allegedly charging high interest rates to borrow money.

Mr Hambayi, a teacher at Nakowa Secondary school in welcoming the move said partial withdraw is long overdue.

“Banks and smaller financial are charging exorbitant interest rates when they get their money. On top of that some people have died without getting their hard earned money resulting into poverty among the siblings (children) left behind,” he said.

Partial withdrawal has been welcomed by many stakeholders in Zambia among them workers themselves, trade union leaders, politicians, civil society, the church and non-governmental organisations.

The new dawn Government has embarked on a journey to implement pension reforms, including the proposed introduction of pre-retirement.

8 COMMENTS

  1. I think this man has not been told yet that it is not NAPSA but defunct provident fund members to benefit. I personally voted thinking like him then, only to discover and get disappointed that it is Provident Fund and not NAPSA.

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  2. I am surprised people still believe in HH campaign promises. Let me refresh people’s minds. 1. mealie meal promised/delivered at k50/K180, Fertilizer k250/k1200, Fuel k5/k27 per litre. The cost of living is at the highest while we have seen hours of load shedding never seen in the country’s history but we were promised something else. What makes you think NAPSA will work?

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  3. The big problem with our current government is lack of precision in reporting key areas of development as a result misleading a lot of people. You see even a government official here is not even up to date with the NAPSA statutory revisions.

  4. Could you guess what the retiree would get at the end when he retires? I believe the majority could be tempted to use the first part payment to solve economic problems if they were to get it today. The compelling reason could be could the rising cost of living,and the diminishing value of the local currency due to inflation.

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