Why Zambia needs an optional NAPSA lump sum for retirees

Why Zambia needs an optional NAPSA lump sum for retirees

By Hon. Sunday Chilufya Chanda, MP – Kanchibiya Constituency

1. Introduction

Following the motion to reintroduce the debt swap for civil servants, I have continued to receive a wave of messages and calls regarding the status of the NAPSA lump sum motion. Many citizens are eager to understand the scope of the proposal and what it means for them and their retirement security.

I wish to inform those concerned that we have formally requested the National Assembly to revert the matter back to being a Private Member’s Motion, following communication that NAPSA intends to carry out amendments to the Act. While this development is welcome, we do not want to leave anything to chance. We want firm assurance that workers’ concerns, in particular, around the optional lump sum, will be addressed through legislation.

The motion, and not a private member’s amendment bill, is therefore being reintroduced to compel a clear and unequivocal government position. We will continue to update the workers across the country as the process unfolds.

2. What are we pushing for?

The push for an optional NAPSA lump sum payment is not about seeking privilege, it is about demanding fairness, flexibility, and the right to make informed decisions about one’s hard-earned retirement savings. Too many retirees, particularly in rural and underserved areas, are sinking into destitution, denied the opportunity to live their final years in dignity.

This reform would allow workers, upon reaching retirement age, to opt into a lump sum withdrawal of a portion of their pension. Whether to meet urgent needs, invest in livelihoods, or secure long-term peace of mind, the choice should rest with the retiree.

3. Destitution at the end of service

Across Zambia, many retirees live in poverty, debt, and despair, despite having contributed faithfully to the National Pension Scheme throughout their working lives. Some of the challenges they face include:

• (a) Long delays in accessing benefits

• (b) Meagre monthly payouts that fail to keep up with the rising cost of living

• (c) Lack of access to banking infrastructure, particularly in rural areas, forcing retirees to spend what little they have just to access their pensions

• (d) Reliance on family, often leading to financial and emotional strain on dependents

For far too many, retirement has become a sentence, not a reward.

4. Why an optional lump sum matters

Offering a voluntary lump sum withdrawal restores retirees’ dignity and helps prevent descent into destitution. This is not about dismantling the pension system, it is about infusing it with compassion, flexibility, and practicality.

• (a) Responding to immediate needs
  Retirees often face pressing issues such as medical bills, housing needs, or livelihood reintegration. A lump sum gives them the means to respond decisively, rather than depend on insufficient monthly trickles.

• (b) Preserving self-worth
  Without meaningful pension support, retirees are too often reduced to humiliation before their families and communities. A lump sum protects their dignity and recognises their years of public service.

• (c) Empowering rural retirees
  In rural Zambia, a lump sum could finance a small business, purchase livestock or farming inputs, or complete a long-delayed home. It becomes a foundation for retirement, not isolation.

5. Real stories, real pain

There are heartbreaking stories across the country of retired men and women:

• (a) Selling household goods just to raise transport fare in pursuit of their benefits

• (b) Dying before ever receiving a single payment from NAPSA

• (c) Living in unfinished homes or being evicted from rental properties

• (d) Suffering in silence with untreated illnesses, unable to afford even the most basic medication

We must ask ourselves: What kind of country do we want to be? One that honours service, or one that punishes it with silence and suffering?

6. Proposed structure and safeguards

To ensure sustainability and protect both the system and the retiree, the proposed model includes:

• (a) Eligibility: Applicable to retirees who have reached statutory retirement age

• (b) Voluntary participation: An opt-in model, allowing flexibility without disrupting the annuity system

• (c) Capped withdrawal: A fixed portion (e.g. 50–75%) of the pensionable amount

• (d) Pre-withdrawal financial counselling: Ensuring informed decision-making

• (e) Targeting mechanism: Prioritising low-income, chronically ill, or financially vulnerable retirees

7. Strategic and policy justification

This proposal aligns with national priorities:

• (a) Zambia’s Vision 2030, particularly on poverty reduction and social protection

• (b) The 8th National Development Plan (8NDP), which recognises the role of social safety nets in inclusive development

• (c) A reduction in pressure on social services and extended families, particularly in rural constituencies where state presence is minimal

8. Conclusion

There are several Members of Parliament, across party lines, who are committed to ensuring that the voice of the Zambian worker is heard, respected, and brought to the floor of Parliament. This is not just a policy matter, it is our moral obligation. Workers across all 156 constituencies have dedicated their lives to service; they deserve more than bureaucratic delays and inadequate payments at the end of that journey.

To all workers who have been in touch and concerned: remain calm, but stay alert. Keep calling, writing to, and engaging your elected representatives. Let them hear your voices, and let them be reminded that your pension is not a favour, it is your right, it is your money.

This is about how you live after you stop working—not to beg, but to build, rest, and live with dignity.

I therefore call upon NAPSA, the Ministry of Labour and Social Security, and my fellow Members of Parliament to stand with the workers of Zambia and support the legislation of an optional lump sum withdrawal as a matter of both policy and principle.

Let’s keep talking.

Hon. Sunday Chilufya Chanda
Member of Parliament, Kanchibiya Constituency
An Advocate for disciplined, democratic leadership with a human face.