President Signs National Pension Scheme Amendment Bill

President Hakainde Hichilema yesterday signed the National Pension Scheme Amendment Bill, which ratifies into law the rights of members of the National Pension Scheme Authority (NAPSA) to access pre-retirement benefits.

The bill – which allows for individuals to access up to 20% of their accrued monthly contributions – was described by Hichilema in a statement released on his Facebook page as giving citizens “the opportunity to reinvest the funds into various ventures and assets of their choice”.

There are several requirements for qualifying individuals, including contributing to one’s pension for at least 60 months, and being aged 45 years and above. Furthermore, the withdrawal may only happen once.

The bill has been supported by those in various professions in Zambia, including those in the education sector. Before, the NAPSA was perceived to increase poverty among teachers, who were denied lump-sum pension benefits. With Hichilema’s new bill, teachers will now be able to receive part of their savings as pre-retirement benefits. By having the option of early access to up to 20% of their pension savings, teachers may be able to invest things previously unattainable to them during their working lives, such as better housing.

NAPSA Director, Muyangwa Muyangwa has said this partial access to pension benefits will begin with immediate effect, starting today.

The original bill was described in December by Presidential Spokesperson Anthony Bwalya as “a fulfilment of the … UPND’s 2021 election campaign promise to undertake crosscutting reforms at the NAPSA and enhance value for money for the contributors.”

It is hoped that the bill will improve the country’s liquidity, prompting more Zambians to invest earlier in housing and economic ventures.

 Photo: Hakainde Hichilema / Facebook