President Hakainde Hichilema yesterday signed into law, the National Pension Scheme Amendment Bill 2023 which fulfills the UPND promise of allowing for the partial withdrawal of pensions.
President Hichilema said the new law will give citizens the opportunity to reinvest the funds into various ventures and assets of their choice. As a result more jobs will be created, contributing to Zambia’s economic development agenda.
National Pension Scheme Amendment Bill 2023, replaces the National Pension Scheme Act, 1996, so as to allow members to access a pre-retirement benefit, among others.
Under the new law a member is entitled to a pre retirement lump sum benefit. The member will have to consent in writing to access a pre-retirement benefit. The conditions for accessing the pre retirement lump sum benefit being that the person
- Is below pensionable age and has
- made a minimum of sixty monthly contributions
or attained the age of forty-five.
The pre retirement lump sum benefit payable will be 20% of the indexed monthly contributions and the accrued interest.Therefore the payable benefit at retirement or any other benefit to a member who has accessed the pre retirement lump sum benefit shall be based on a member’s residual contributions and contributions made after the receipt of a pre retirement lump sum benefit.
Therefore a member who accesses a pre-retirement benefit consents to a reduction in that member’s retirement or other final benefit payable under this Act.
On his facebook page President Hichilema welcomed comments from Zambians on the benefits of NAPSA partial withdrawals.
I have not yet accessed the Act,Does it also cover employees under the Public Service Pensions Fund and Local Government superannuation Fund?
It is called NAPSA act and only applies to there members.
Other pension houses LGFS, PSPF, Regna Saturnia, etc. are not covered the Act of Parliament.
Thanx,Machayi
Very convenient timing… just to put your mind of the mealie meal issues.
How is this going to work if you are still failing to pay the ones who have retired are still waiting for there dues.Bally stop this lying business
Napsa has got its own money. Worry is that not all of us are going to make good use. One I know first thing he did with his NPF was to a super size flat screen.
Are you in Zambia? Ask retirees about their dues and you’ll get the answer. No government has ever addressed the retirement issues as good as this one.
Nothing to be excited about. NAPSA contributions are paltry. It all depends on how much your basic pay is, the size of your monthly contribution, and how long you have worked. The ZISC superannuation schemes have been the best for public service workers. Not only does the employee contribute, the employer also contributes towards the employee’s scheme. I can see those withdrawing the 20 percent of their contributions getting angry over what they will get. Then at the end of their working lives, they may be getting less than K 2,000 per month.