ZAMTEL and the National Union of Communication Workers (NUCW) have mutually resolved to de-register the pension scheme for employees.
But some Ndola-based ZAMTEL employees, who spoke on condition of anonymity, said they feared they would lose out on payments equivalent to the contributions which they were supposed to get after retiring at the age of 55.
ZAMTEL public relations manager Rosemary Mwanza confirmed the development in a statement released in Ndola yesterday and said the board of the Pensions and Insurance Authority (PIA) resolved to de-register the Zamtel Pension Scheme.
“The decision was made so as to protect members’ interests that have been exposed to risks due to the fact that the scheme was under-funded,” she said.
The pension scheme was until recently administered by the Zambia State Insurance Corporation.
[pullquote]“The decision was made so as to protect members’ interests that have been exposed to risks due to the fact that the scheme was under-funded,” she said.[/pullquote]
It had over the years accumulated a colossal actuarial deficit and as a result, it had no capacity to honour its obligations to the scheme members as it became due.
Ms Mwanza said in order to avoid the escalation of the weakening financial position of the scheme, the registration had to be cancelled, especially that the scheme’s sponsor, ZAMTEL had no capacity to liquidate the deficit.
NUCW general secretary Clement Kasonde said most of the ZAMTEL workers countrywide were in favour of the decision to de-register the pension scheme.
Mr Kasonde said it was only a few Ndola-based employees who were against the move, which would see workers paid according to the years served unlike the earlier arrangement where they were expected to receive their pension benefits after the age of 55.
[ Times of Zambia ]
There is something funny about this story. There is no way a parastatal employee will agree to have his pension fund deregistered. The true reason is that RP Capital Partners want a huge commission, and the only way that will happen is if Zamtel limits its liabilities, and the fall guys are the employees. Their union is quite useless to have been hoodwinked like this
It’s very unfortunate that the Union is misleading the people that the workers have agreed to the de registration of the scheme. The problem is the problem is that this same union and other people have imposed themselves as trustees of the scheme’s board and they actually should be prosecuted. They have misrepresented the members of the scheme while keeping the members in the dark about what is happening. More over the scheme is for members who include non unionized staff and the union has nothing to do with it. The Zamtel workers have appealed to the Honorable Minister of Finance against the de registration and over 460 workers signed the appeal and many more are willing to sign. Let this sell out of a leader show a list of even 100 workers who have agreed to what he is claiming
This is the best news I have heard for a long time. Pension schemes are a scam in an unstable economy. Just pay the workers the full amount and let them make savings for the rainy day. In Zambia where death comes early, it will also mean that the property grabbers will have nothing to grab. Let the worker decide what to do with his/her won money while alive.
ITS OK TO DEREGISTER ZAMTEL SCHEME>>>LET THEM GIVE THE EMPLOYEES THEIR MONEY
TO HELL WITH WHO EVER IS TRYING TO BLOCK THE DEREGISTRATION>>>WHAT WE WANT IS OUR MONEY AND WE WANT IT BY NEXT WEEK>>>>>LAP GREEN>>>LAP GREEN>>>>LAPGREEN
IT IS SAD THAT THE PENSION BOARD OF TRUSTEES COULD NOT GIVE PROFFESSIONAL ADVICE TO THE UNION AND MGT. REMMEMBER THAT IT IS U WHO CAN BE SUED AND NOT THE UNION AND MGT BY WORKERS.(PSR ACT 2006 AS AMENDED).
FOR THE WORKERS ESPECIALLY THOSE WHO HAVE CLOCKED MORE THAN TEN YEARS THIS IS A BIG LOSS.WHEN YOU BECOME DESTITUTES IN FUTURE REMEMBER THIS ADVICE.
THE UNION IS IGNORANT AND SELFISH.
When i left Zamtel ,this Kasonde was a like a casual employee at Telephone house ,now iam sure he is huge because of these pensions.Stop fooling us ,we all know whats happening………..
no 4 is right its in the interest of the new owners LAP GREEN, the seller and the BROKERS of the deal
this way they all get more in their pockets