GOVERNMENT CLEARED 13,470 CASES OF PENSIONERS AND RETIREES SINCE 2014
The Case of Pensioners and Retirees
By Amb. Emmanuel Mwamba
Secretary to Treasury Felix Nkulukusa announced that the Treasury had released K837 million for social protection programmes of which K255 million will go to the Public Service Pension Fund (PSPF) to help clear cases of unpaid pensioners and K50million will go to the Local Authorities Superannuation Fund (LASF).
The balance of K402 million will go to Social Cash Transfer Programme.
There was jubilation on social-media especially from supporters of the New Dawn Government, who said at last, the suffering of pensioners was being attended to and their money were being paid.
The previous government was cast as a callous and an irresponsible government that failed to pay retirees and pensioners.
Infact, many people replayed the sad video of a distraught woman pensioner, crying at the Ministry of Justice, cursing the PF government and its leaders for failing to pay widows, and retirees, their money.
WHAT ARE THE FACTS?
Government through the Public Service Pensions Fund has consistently paid outstanding cases of retirees and pensioners and has, since 2011 dismantled the number from 22,000 cases of unpaid retirees to a mere 2,200.
Below are the releases of funding since 2014.
- In 2014, K723million was released to pay 2,353 cases.
- In 2015, K965 million was released to pay 2,424 cases.
- In 2016, K671million to 1,817 cases.
- In 2017, K1.1530 billion was released to pay 3,138 cases.
- In 2018, K644 million was released to pay 1,205 cases.
- In 2019, K162million was released to pay 315 cases.
- In 2020, K1,150 million (K1.5billion) was released to pay 2,218 cases.
- In 2021, K1.512 million (K1.5billion) was released.
Funding for 2021 has been released as budgeted for where it was paid in tranches of K544million and K456million.
The 2022 Budget has provided K2.1 billion which is expected to clear the 2,300 cases.
BUT WHY DO WE HEAR THAT PENSIONERS ARE NOT PAID?
You and I have seen retirees and pensioners camped at the Vice President’s office, Ministry of Justice or near State House.
These are retirees’ or pensioners’ cases that are protracted and are/were being handled by the courts of law through beneficiaries’ lawyers.
Some of these matters are still locked in courts of law or Judgements were delivered but have not been honoured or where Judgements have been honoured, funds have not been paid to rightful owners or administrators of late beneficiaries’ estate.
Other cases involves pension funds that were previously dissolved or the case details are lost in the bureaucracy.
Let’s take the famous case of Hon. Nelly Mutti and her lawfirm, Lukona Chambers.
Ms Mutti represented the 3,523 retirees under the Voluntary Separation Association of Zambia (VSAZ) in a battle to claim the pensioners’ benefits.
After many years, she won the case on behalf of the retirees and Government started paying the pensioners’ through her law firm.
The money was part of the Government release for 3,523 retirees that left their employment under the voluntary separation in late 1990s.
Her firm made deductions from the benefits of civil servants in three categories namely, 10 per cent legal fees, 10 per cent handling fees and 16 per cent VAT.
This sparked protests from the retired civil servants and legal cases of theft, forgery and fraud charges by the State against her and the lawfirm.
On March 6, 2014 she was arrested and charged with 33 counts relating to theft and forgery in connection with the payment of more than K35 million to former government employees.
The DPP later discontinued the case and the retired civil servants were requested to pursue their claims as a civil case in the High Court.
CONCLUSION
It is heart-warming that the previous government cleared over 22,000 cases since 2011 of retirees and pensioners including those dating back to the 90s and 2000s.
The cases I have been looking at are 13,470 under the Public Service Workers Pension Fund (PSPF) alone cleared since 2014.
The duty of this government is to continue on this path so that we clear all outstanding cases of retirees and pensioners.
Further, reforms are needed to both the Insurance and Pension Sub-sector.
The abolition of a lump-some payment to retirees was imposed on workers without sufficient consultation.
Similarly the case of retirement age that was raised to up-to 65 years is another matter of concern.
Many feel that the monthly payments made to pensioners are inadequate, do not take into account inflationary and cost-of-living factors and leave pensioners destitute.
Let’s debate the reforms we should take to ensure that both retirees and pensioners are not left desperate, destitute and do not end the rest of their lives in despair after making long-time contributions to pension funds.