By ZR Reporter
CABINET has approved in principle the introduction of a Bill in Parliament to undertake reforms in the public pension schemes.
This follows the second cabinet meeting President Hakainde Hichilema called for on Thursday at State House, to deliberate on matters that pertain to national development.
In a statement yesterday, Chief Government Spokesperson Cornelius Mweetwa said the Bill will entail introduction of a Bill in Parliament entitled “the Specified Offices Pension Benefit Bill, 2024,” so as to establish a contributory statutory pension scheme for Constitutional and State Officers.
Mr Mweetwa added that the Bill will also facilitate introduction of a Bill in Parliament to repeal and replace the National Pension Scheme Act, No. 40 of 1996, in order to enhance the level of benefits, compliance and administration of the NAPSA Scheme.
He said it will provide for voluntary supplementary benefits and strengthen coverage of the informal economy workers, among others.
The Minister of Information and Media said another aspect entails introduction of a Bill in Parliament to repeal and replace the Public Service Pensions Act No. 35 of 1996, to provide for a mandatory occupational pension scheme which will provide supplementary pension benefits for targeted public service employees currently only covered by NAPSA, and address the design and financing of the existing scheme for long-term financial sustainability.
Meanwhile, Mr Mweetwa said the Cabinet also aims to introduce another Bill in Parliament to repeal and replace the Local Authorities Superannuation Fund Act, Cap 284 of the Laws of Zambia, in order to transform LASF into a sustainable occupational pension scheme for Local Authorities and associated institutions.
“Generally, Cabinet emphasised the need to harmonise and rationalise pension benefits, resolve inconsistencies and lacunae in the current legislation, introduce affordable, sustainable and adequate public pension benefits; and provide for the establishment of the Specified Offices Pension Benefits Scheme going forward, for the benefit of the people,” he stated.
And Mr Mweetwa disclosed that the Cabinet approved issuance of the National Pension Scheme (Penalty Waiver) (Amendment) Regulations, 2025.
“The decision by Cabinet aims to extend the cut-off date for the 75% penalty write-off window for twelve months from 9th January, 2025 to 8th January, 2026; extend 100% penalty write off granted for penalties incurred during the Covid 19 pandemic period from 9th January, 2025 to 8th January, 2026; extend 75% penalty write off for penalties incurred during the Covid 19 pandemic period from 9th January, 2026 to 8th January, 2027; extend the cut-off date for the 60% penalty write-off window by twelve months from 9th January, 2026 to 8th January, 2027; and simplify the penalty waiver process for Government and Local Authorities by a one-off exemption from filing returns,” he said.