Zambian President Hakainde Hichilema yesterday signed into law, the National Pension Scheme Amendment Bill 2023 which fulfills the UPND promise of allowing for the partial withdrawal of pensions.
President Hichilema said the new law will give citizens the opportunity to reinvest the funds into various ventures and assets of their choice. As a result more jobs will be created, contributing to Zambia’s economic development agenda.
National Pension Scheme Amendment Bill 2023, replaces the National Pension Scheme Act, 1996, so as to allow members to access a pre-retirement benefit, among others.
Under the new law a member is entitled to a pre retirement lump sum benefit.
The member will have to consent in writing to access a pre-retirement benefit. The conditions for accessing the pre retirement lump sum benefit being that the person
Is below pensionable age and has made a minimum of sixty monthly contributions
or attained the age of forty-five.
The pre retirement lump sum benefit payable will be 20% of the indexed monthly contributions and the accrued interest.
Therefore the payable benefit at retirement or any other benefit to a member who has accessed the pre retirement lump sum benefit shall be based on a member’s residual contributions and contributions made after the receipt of a pre retirement lump sum benefit.
Therefore a member who accesses a pre-retirement benefit consents to a reduction in that member’s retirement or other final benefit payable under this Act.
On his facebook page President Hichilema welcomed comments from Zambians on the benefits of NAPSA partial withdrawals.
