NAPSA CONFIRMS: 30% RETIREMENT LUMP SUM IS OPTIONAL, NOT MANDATORY
The National Pension Scheme Authority (NAPSA) has clarified that the recently introduced 30 percent retirement lump sum is optional and not mandatory for eligible members.
Speaking during the Sunday Interview programme on ZNBC, NAPSA Director General, Muyangwa Muyangwa, said members will have the freedom to decide whether to receive the lump sum or remain on a full retirement pension.
Mr. Muyangwa explained that NAPSA was established as a basic social security scheme and not as a member’s primary source of retirement income.
He said the scheme is designed to provide a safety net for workers in retirement, ensuring that they have a source of income to fall back on when other retirement plans or investments are unavailable.
Mr. Muyangwa noted that this is reflected in the scheme’s contribution rate of 10 percent, which was designed to provide basic social protection rather than fully replace a worker’s income after retirement.
He said members who choose to access the 30 percent lump sum will receive part of their benefits upfront, while those who opt against taking the lump sum will remain on a full retirement pension.
Mr. Muyangwa further emphasized the importance of workers making additional retirement preparations beyond NAPSA through personal savings, investments and supplementary pension arrangements where possible.
The clarification comes following the enactment of pension reforms that have introduced greater flexibility in how retirement benefits are accessed, with the 30 percent lump sum option being one of the key changes aimed at giving members more control over their retirement benefits.
By: Agness Nakazwe
SunFmTvNews