Pensioners at Risk: NAPSA’s Financial Health Questioned Amidst Massive Payouts


Fred M’membe, the President of the Socialist Party, has expressed concern over the cash flow situation of the National Pension Scheme Authority (NAPSA) in Zambia. Dr M’membe highlighted that NAPSA’s absence from the last few Bank of Zambia Government Bond auctions, coupled with its significant contributions to under-subscribed auctions, have raised questions about the organization’s financial health.

According to Dr M’membe, NAPSA has disbursed approximately K5.8 billion (approximately $300 million) through partial pension withdrawals since the implementation of President Hakainde Hichilema’s policy. However, reports suggest that NAPSA had anticipated a total partial pension payout of K11 billion, leaving an outstanding amount of K5.2 billion (approximately $290 million). This brings the cumulative payout projection to an astounding $590 million.

Additionally, it was revealed that NAPSA is expected to provide debt financing of $300 million for the Lusaka/Ndola dual carriage project. When combined with the partial pension withdrawals, NAPSA’s cash outflow in 2023 alone is projected to reach $890 million, raising concerns about potential funding constraints for the organization’s future operations.

Addressing these concerns, Dr M’membe urged the Pensions and Insurance Authority to closely monitor NAPSA’s future cash flow profiles to mitigate any risks of failure. While emphasizing that there is no definitive prediction of failure, Dr M’membe stressed the importance of prudently managing NAPSA’s commitments to ensure the organization can sustain these substantial financial obligations.

The President of the Socialist Party also drew attention to the recent default on Zambia’s Eurobond payments, highlighting that the majority of these bondholders are pensioners. Dr M’membe appealed for a debt restructuring that would include a “haircut” on the Eurobond, potentially resulting in losses for pensioners who invested their hard-earned money in these bonds. He cautioned that a similar scenario could unfold if NAPSA’s financial situation worsens, potentially jeopardizing the retirement savings of workers who contribute to the pension scheme monthly.


  1. At this juncture, Napsa management will insist that the situation is solid. Once HH is out of office and the institution is in dire straits, the same managers will say the former president did not consult expert opinion. Hope it won’t come to that….alot of people are living on Napsa.

    • Whereas I do not think that the partial withdrawal of NAPSA pension contributions is a good policy, I disagree with the argument that the pension is now worse off. The pay-outs represent reduced liabilities in future to the extent of the amount paid. Going forward, I do not see this policy of partial withdrawal continuing for a long time. It’s just not done in pension fund management.

  2. This is what happens when you make a lying overpromising f00I a president. He now desperately raids napsa by allowing poor people to squander not his money but their own future savings. In the process risking the financial collapse of an institution like napsa. Hh is very dull

  3. How is it a risk?
    The partial withdrawals have actually helped NAPSA reduce its liabilities to the pension holders. You become a pension holder the moment you start contributing to the scheme even at 20 years old.
    Socialist or Communist ideas of the state controlling peoples assets are irrelevant in modern times.
    That money belongs to me, I worked for it and I can use it the way I want.

    • Ladies and gents, above we have an example of a f00Iish diasporan woman who does not have a single kwacha in napsa, but sees it fit to open her big stinky mouth about this issue.

  4. Mmembe shut up and sit down. Nindalama za nyoko. If anything we needed to use 50%. What is the life expectancy in Zambia? You are used to stealing people’s money. Talk about something else not our hard earned money i.d.i.O. T.

    • You are correct about Pf looting
      Let us hope Zra ex boss chanda squeals
      He was involved in a lot of PF grabing

  5. The whole thing of allowing 20% partial withdraw of NAPSA, is a calculated move to leave Saturnia Regna, a private pension scheme fund as a preferred entity, and mind you Bally has vested interest in Saturnia. Soon and very soon NAPSA will begin limping and fail to honor its obligation.

  6. Those young ones out there saying it’s their money they worked for it will wake up when they are 65 years + with no job, no strength to hustle and no pension to draw.

  7. The Pensions and Insurance Athority has no regulatory authority on NAPSA. Comrade Fred, you worked at ZSIC, you have good friends, cnsult them before writing anything on pensions and insurance

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