The National Pension Scheme Authority (NAPSA) Director Stanley Phiri says the pending demise of the Local Authorities Superannuation Fund (LASF), which is expected to wind up in 2017, was a planned move by government when it enacted the NAPSA Act of 1996.
Mr. Phiri explained that government enacted the NAPSA Act number 40 of 1996 to allow all workers employed after 2000 to belong to the scheme and not LASF as it was expected to wind up its operations.
Speaking to ZANIS in an interview today, Mr. Phiri said claims that NAPSA was getting members from LASF was not true as it was planned by government to have one fund to take care of all civil servants’ social protection as opposed to having many.
He said NAPSA was established after the transformation of the Zambia Nation Provident Fund (ZNPF) to allow all regular employees and farmers to subscribe, taking into consideration that other funds such as LASF and ZNPF would gradually wind up.
He however explained that government has indicated that it will find a way of harmonising the two acts but noted that it was not possible to allow the two Acts to operate side by side.
Recently, Local Government Permanent Secretary Bernard Namachila indicated to the parliamentary Public Accounts Committee (PAC) that LASF would soon wind up and leave hundreds thousands of retirees in poverty.
LASF is currently owing about 2, 000 retirees colossal sums of money amounting to over K69.3 billion in retirement benefits and its membership has declined from 19, 000 to 6, 000 members.
After the formation of NAPSA in 2000, all the civil servants that were employed after that year belonged to NAPSA leaving LASF with more retirees than active members.
This situation may result in some retirees to be denied their benefits.
[ZANIS]
The of LASF is as a result of the flaws associated with Defined Benefits pension scheme where the company is itself a guarantee.The problem arises when tha company collapses cos it follows that pensions wont be paid cos the guarantor is dead.The most free market economies identified the flaws of this system and carried pensions reforms as way back as 1970’s giving birth to a system called Defined Contribution where individual workers contribute and the company is required by law to submit the contribution to a Pension Fund as is the case with NAPSA.In the case of LASF,the guarantor(govt) is still alive and can still foot the K63 billion for our retirees as it will be a one-off expenditure.The excuse of the govt being broke is now becoming a broken record to retirees.
#1 shud read;The case of LASF….
Mismanagement
Unless this country is ruled by a white man,I think by virtue of a black man they have a more care of themselves
Zambia was a better place, if you look at the pictures of zambia in 1960, and compare that to pictures in 2010
I ask you, which a better era, undoubtedly it is then. The policemen had houses, then unlike now, there was better schools, You let a black man take over and look, All you have done is sell your own possessions in the name of Privatisationn and are not smart enough to see that your country is a joke
I detest my on country, I don’t hate anyone but i think collectively Zambia is a rubbish pit, and a sinking one, think of zambia in 50 years, how do you blame me for turning my back on you?
Thanks
The best way would be for Napsa to take over all LASF obligations once its wound up otherwise many retirees will be left nothing to sustain their lives. Experts should work out something that will not disadvantage a certain section of our retirees.
Social security. And you look at K69.3 billion for 2000 retirees is a joke. The author even says ‘collosal’. Thats exergaration of the highest order.
LT still moderating my post!! Whats wrong with it?
The government has money to pay the retirees but it no longer cares once one retires and wish them to die not seeing their benefits! Where is the money coming from awarded to the soccer team for a fortnights success yet retirees have been waiting for years and could not have anything with which to join the rest of the country in celebrating the Chipolopolo win? Don’t get me wrong for I am not suggesting that the Chipolopolo should not have been rewarded. How come when it is politicians there is always money for mid-term gratuity and are paid in full once parliament disbands for general elections?
Mushota may not be a darling for her unpalatable comments but I tend to agree that if it were whites running our national affairs we would not be in this sorry situation.
I agree with Musota on this one. The Taliban has said sense for once.
In my understanding, NAPSA is a parastatal just like LASF and Phiri is CEO for NAPSA. This is a Govt policy matter which only a GRZ representative can comment on and not Phiri unless he is a GRZ spokesperson. Now we wait to hear the govt position on the matter. Drama drama drama.