OVER THREE HUNDRED THOUSAND PEOPLE HAVE ACCESSED NAPSA PARTIAL WITHDRAWALS
…. a total of K7.7 billion has been paid to beneficiaries
Government has disclosed that as of 30th June 2023, a total of 332, 493 members have been paid a total of K7.7 billion under the National Pension Scheme Authority (NAPSA) partial withdraw initiative.
Delivering a ministerial statement in Parliament this afternoon, Minister of Labor and Social Security Hon Brenda Tambatamba says there has been an overwhelming response from the general public toward the pre-retirement benefits.
“Madam Speaker, you may wish to note that of the 332,493 members paid as of 30th June, 2023:
15 percent or 48,661 members were female who received 16 percent of the total payout or K1.2 billion 85 percent or 283,832 were male who received K6.4 billion. Further, I wish to state that the youth have also benefited from pre-retirement benefits. A total of K777 million has been paid to 60,240 members of the scheme aged 20-34 years who make up 18 percent of the total members paid. The age group 35-49 years old received a total of K5.3 billion while 53,861 or 16 percent of members paid were in the age group above 50 years old received K1.6 billion as of 30th June, 2023,” she told the House.
The Minister also said government is also cognisant of the challenges faced by some members of the scheme in accessing their pre-retirement benefits.
“Some of the reasons that have led to these challenges include: Mismatch of member details with key service providers such as banks and mobile network operators which the authority has identified as critical institutions for the validation of member details. Non – remittance of member contributions by some employers has resulted in some members failing to meet the eligibility criteria of 60 months of contributions and therefore unable to claim the pre – retirement lump sum benefit. The legacy issue of duplicated national registration cards,” she added.
“To address the challenges faced by the members, the National Pension Scheme Authority, has instituted the following measures: Extended hours of operations of the customer service centre from 08:00 – 17: 00 hours to 06:00 – 22:00 hours to allow huge outturns of members who seek assistance with verification of member details and onboarding to facilitate for claim process. The authority has engaged the most affected employers which include among other local authorities, quasi-government institutions, and private employers to make good of contributions as provided for by the NPS Act No. 40 of 1996.”
Hon Tambatamba explained that in order to mitigate the challenge of shared NRCs, the Authority has established a dedicated unit comprising of desk officers responsible for continuously engaging and collaborating with the national registration office for the identification of rightful owners.
“Madam Speaker, as I conclude, allow me to state that the implementation of the pre-retirement benefits has also raised awareness amongst the general public on the importance of pensions. Further, it has exposed employers who have not been remitting their employees’ contributions to the scheme. The new dawn government will continue in the medium and long term to undertake broad social security reforms to ensure that the existing social security schemes are well subscribed and responsive to the needs of our citizens,” she concluded.