Public Service Pensions Fund (PSPF) Director General Francis Nyirenda says the newly enacted Public Service Pensions Act No. 73 of 2026 marks a historic milestone in strengthening retirement security and improving pension benefits for public service employees in Zambia.
Speaking during a media briefing in Lusaka today, Mr Nyirenda said the new law, which was assented to by President Hakainde Hichilema on June 4, 2026, repeals and replaces the Public Service Pensions Act No. 5 of 1996 and introduces a modern framework aimed at enhancing pension administration, governance, and the long-term sustainability of the fund.
 Mr Nyirenda highlighted one of the key objectives of the reform which addresses inequalities that existed in the pension system by bringing on board public service employees, who were excluded from the PSPF scheme when pension reforms were introduced in 2000.
He explained that under the new arrangement, public service employees will benefit from a mandatory two-tier pension system comprising the National Pension Scheme Authority (NAPSA) as the first tier and the PSPF-administered Occupational Pension Scheme (OPS) as the second tier.
Mr Nyirenda stated that the reforms are designed to improve retirement outcomes and ensure equity and fairness among public service workers, who were previously covered only under NAPSA will now also benefit from an occupational pension scheme under PSPF.
He noted that contributions to the Occupational Pension Scheme will be set at 6.5 percent of an employee’s gross salary, shared equally between the employee and government at 3.25 percent each.
Mr. Nyirenda said the combined contribution structure under NAPSA and PSPF would significantly improve retirement benefits and increase the income replacement ratio for workers upon retirement.
He explained that the two-tier system is expected to deliver a combined income replacement ratio of 65 percent, with NAPSA targeting 45 percent and the Occupational Pension Scheme contributing an additional 20 percent.
