Labour and Social Security Minister Brenda Tambatamba has indicated that government is considering permitting workers to withdraw an additional 10 percent from their NAPSA savings as part of ongoing pension reforms.
Speaking on a Radio program yesterday, Tambatamba said the proposal, which is still under consideration, could allow members to access between 30 and 40 percent of their pension savings before retirement.
“Yes, it is that reform that is looking at the possibility of an add-on to the NAPSA fund, a possibility of an additional 10 percent that members may be able to collect. This reform is still in the pipeline,” she said.
Her comments followed praise for the introduction of the 20 percent pre-retirement benefit, which she described as a significant development for Zambian workers and something that had previously been viewed as unlikely but was implemented soon after the UPND took office.
“It was almost unimaginable that you could withdraw part of your pension savings while still employed. It was unthinkable, almost,” she said.
Tambatamba explained that before implementing the 20 percent withdrawal, government consulted actuaries and economic specialists to ensure the long-term sustainability of the fund.
“Some people wanted a higher percentage, but 20 percent aligned with the actuarial report,” she said.
She also addressed concerns that the reform might weaken NAPSA, stating that the fund’s portfolio has increased from approximately K67 billion in 2021 to more than K105 billion.
According to Tambatamba, the 20 percent withdrawal released about K11 billion into the economy, benefiting workers and their communities.
She added that the proposed additional 10 percent withdrawal will be presented to Parliament as part of wider pension reform measures.
Tambatamba further commended President Hakainde Hichilema’s leadership, saying the reforms reflect bold and forward-looking governance.
“We need leaders who think differently and creatively, and we have seen him prove many critics wrong,” she said.
I am appealing to the government to influence NAPSA to pay me the five years monthly increments which were stopped during the five year PF rule. When UPND came into power I forwarded my complaint and the monthly increments were restored. I receive monthly increments because my income is still below K6,000.00 the minimum set for livelihood. Please consider my complaint because currently I am receiving K2,300.00. I appreciate the UPND’s quick response when they came into power. My income then was just slightly above K1,000.00 per month.
Please you have my support
That’s a very much welcome move. It should be pushed..
You have done a good thing
Way to go
Welcome. & Progressive move, hope it will enable me buy my retirement House.