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By Salifyanji Miti, 2022.
On 6th December 2022, President Hakainde Hichilema signed the National Pensioners Scheme Regulation bill into law. This follows after the approval by Cabinet for it's publication and introduction in parliament and also after the 2nd reading of the bill by the Finance minister on the 18th of November 2022.
The Assented bill:
However, critics have claimed that withdraw of Pensioners contributions if not properly managed may leave more people destitute, this is because chances are high for one to misuse money if they do not have a plan. Also, the proposed Amendment should have been applicable to persons who are members of the National Pensioners Scheme as that would automatically capture persons who are members of the Zambia National Provident Fund. If the intention was to Amend the NAPSA Act so as to provide members of the Scheme an option to access part of the contribution before retirement then it has not been clearly expressed.
Your views on this.
- Provides for a waiver of penalties arising from delayed payment of contribution.(it should be noted that this is only applicable to new penalties incurred after the new law is in effect).
- Provides an option for partial withdraw of benefits by a member.
- Revised penalty rate from 20% to 10% delayed payment of contributions.
- And Finally, Revised minimum age limit for one of early access to Zambia National Provident from 50 yrs to 36 years, this also means all members who contributed to the fund between 1966 and 2000 may claim without waiting to reach 50yrs.
However, critics have claimed that withdraw of Pensioners contributions if not properly managed may leave more people destitute, this is because chances are high for one to misuse money if they do not have a plan. Also, the proposed Amendment should have been applicable to persons who are members of the National Pensioners Scheme as that would automatically capture persons who are members of the Zambia National Provident Fund. If the intention was to Amend the NAPSA Act so as to provide members of the Scheme an option to access part of the contribution before retirement then it has not been clearly expressed.
Your views on this.
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