Introduction
- 1966 – January 2000
- Zambia National Provident Fund (ZNPF)
- Defined Contribution Scheme – benefit = accumulated contributions plus interest
- Lump sum payments – one off payment
- February 2000 to date
- National Pension Scheme Authority (NAPSA)
- Defined Benefit Scheme – benefit determined by a formula
- Pensions – monthly income for life
Pension features
- Minimum pension – K843.97
- Increased every January in line with wage inflation
- Basic requirement – 180 months of contributions (15 years)
- Reduced criteria for pension:
NPS (Amendment) Act No. 7 of 2015
- Effective 14th August 2015, pensionable age for
members of NAPSA was revised as follows: - Early retirement age – previously 50 years, now 55 years
- Normal retirement age – previously 55 years, now 60 year
- Late retirement age – 65 years
- Members who joined the scheme after 14th August 2015 can claim their benefits at 55, 60 or 65 years
- Members who joined the scheme before 14th August 2015 can claim their benefits at 50 and 55 years OR can claim at 60 or 65 years
- Continued payment of the pension is dependent on annual submission of a pension life certificate
- If a member does not qualify for pension, they get a lump sum
NPS (Amendment) Act No. 7 of 2015
* Minimum of 180 months of contributions and the calculated pension exceeds the minimum pension payable in the year of retirement.
Benefits Payable Under NAPSA
NAPSA is designed to provide for the following benefits:
- Retirement Pension
- Early Retirement Pension
- Invalidity Pension
- Survivors Pension
- Funeral Grant
NAPSA Benefits
Eligibility for Survivors Benefits
- Spouse (s)
- Child under age 18
- Child under age 25 in formal education
- An unborn child of the deceased (in utero)
- Child of any age disabled by age 18 and at death of the member
- In the absence of a spouse(s) and children, a lump sum is payable to the administrator of the deceased’s estate