NAPSA PARTIAL PENSION SCHEME PROGRESSIVE.
As we discuss this issue, Zambians should know that it is optional not mandatory that every employee should draw their accumulated pension.
It is undoubted that the NAPSA Pension Scheme reforms that the New Dawn Government under the able leadership of President Hakainde Hichilema is undertaking are well meant.
While in opposition, the President pledged to reform the NAPSA Pension Scheme and he is living up to his words. This move has excited the civil servants and other stakeholders despite mixed fears of unknown especially by the opposition political parties.
The reforms under discussion emanated from the cry by the civil servants that at retirement age their energy to productively use the pension would have reduced and become destitutes due to prolonged time of getting their benefits and some even die in the process while pushing their benefits.
In short, the president doesn’t want the situation where pensioners assemble at the ministry of justices to claim their money like what happened in the previous government. Equally, life expectancy in Zambia and Africa at large has drastically reduced hence the probability of the retiree surviving and being physically fit is slim.
Being a listening Government, the New Dawn upon assuming power began to actualise what the Drivers of Government business, civil servants wanted.
Under the new pension scheme, civil servants will have the freedom to make partial withdraws from their pension savings from what would have accumulated over a guided period of time.
The partial payment will move those working in the public service to entrepreneurship, a move which will create jobs and wealth for families
The pension scheme will also allow civil servants while energetic and productive to do business or invest into real estate or whatever business to have access to some funds. This has been a cry from the civil servants, that previous governments failed to actualise.
The partial pension will also give civil servants a sense of investment while they are still working.
To those who will opt to embrace the partial scheme, it will help them reduce over dependence syndrome on the yoke of loans where the majority of civil servants have been taken hostage.
The scheme has been well received by majority of civil servants as it gives them a sense of responsibility, knowing very well that the partial payment would have drastically reduced the final pension after retiring.
Here, the good investment of the funds will be cardinal especially in informal sector (SMEs).
The concerns raised by opposition political parties and other stakeholders are taken but maybe applicable in the future as pension schemes are not static but progressive.
For instance, the PF under President Michael Chilufya Sata proposed a two tier pension system in which there was to be a compulsory monthly and optional contribution scheme under which a person could withdraw their benefits while in employment and use it for investment before retirement. Presently this system cannot work as the Government is still realigning the damaged economy by the previous government.
Indeed many suggestions from stakeholders are welcome and valuable as they will contribute to strengthening the pension scheme in future.
Contact: UPND Media Director Ruth Dante Heaton. 0976503165/ 0975705808
Email: dante.ruth@gmail.com