National Pension Scheme Authority (NAPSA) has responded to a statement circulating on various media platforms that suggested the authority had halted the payment of pre-retirement lumpsum benefits. The statement alleged that NAPSA had run out of funds. In a press release issued on 15th May 2023, NAPSA categorically denied the allegations and reiterated its earlier position that it has sufficient liquidity to meet all its pre-retirement lumpsum benefits payments.
NAPSA stated that it had invested over 69 percent of its fund into liquid assets. This means that the authority is able to easily meet its financial obligations either from fresh funds from contribution collections or maturities from its liquid instruments as and when they fall due. NAPSA has an investment portfolio of K71 billion (USD 3.3 Billion), which has been invested in diverse asset classes including fixed and liquid assets to meet benefit payout obligations as and when they occur. The investment portfolio includes 69% in Government Securities and Fixed Term Deposits, 10.3% in Real Estate, 7% in Green Fields, and 6.5% in Infrastructure, among others.
In anticipation of the amendment of the law to allow for the pre-retirement benefit, NAPSA management put in place measures to ensure that there was sufficient liquidity to finance expected claims. Since the commencement of payment of pre-retirement lumpsum benefits on 19th April 2023, NAPSA has paid out a total of K3.9 billion to over 128,000 members from the estimated eligible 600,000 members. These payments will continue until all the eligible members who opt to access their pre-retirement benefit are paid.
The Director-General of NAPSA, Muyangwa Muyangwa, called the statement that is circulating purporting that the Authority has run out of funds false and maliciously intended to cause unnecessary panic among the members. He assured the members that NAPSA is ready to meet all its financial obligations, and therefore there is no need to panic.
Head Corporate Affairs, Cephas Sinyangwe, issued the press release.
Hh has an interest in most consumer goods businesses. He has alot to gain from passing laws that allow ignorant Zambians to withdraw their life savings early so that they spend on consumer goods to benefit hh businesses.
But ba Napsa…do not deny. The truth is that you have run out of money.
You are not able to satsfy the demand currently.