The Government has unveiled a new set of pension reforms aimed at giving retirees greater access to lump sum benefits while preserving the long-term stability of the National Pension Scheme Authority (NAPSA).
The announcement follows a private member’s motion presented in Parliament by Kanchibiya Member of Parliament, Hon. Sunday Chanda, who called for enhanced flexibility in pension withdrawals to allow members to access a portion of their savings upon retirement.
Speaking in Parliament, Minister of Labour and Social Security Hon. Brenda Tambatamba said the new reforms are designed to empower workers with more financial options at retirement without compromising their monthly pension security.
Under the new measures, the current 20% partial withdrawal will now be accessible as a lump sum at retirement, with ongoing considerations to increase the percentage for greater flexibility.
Additionally, Government plans to introduce a second-tier pension system targeting teachers, health workers, and other civil servants employed after the year 2000. This will allow workers to contribute to both NAPSA (Tier I) and the Public Service Pensions Fund or Local Authorities Superannuation Fund (Tier II), giving them access to up to 40% lump sum benefits upon retirement.
The reforms mark a major step toward modernizing Zambia’s pension system and ensuring that retirees enjoy both security and control over their post-employment finances.