A type of retirement plan, a fund, that provides monthly income after you retire from your position.
Pension scheme administrators are responsible for managing day to day administration of the fund and also providing secretarial services. They are responsible for paying out benefits, keep scheme records and organize meetings for trustees. Fund managers have the duty to invest scheme funds on behalf of the trustees. Funds are invested in various instruments like government bonds, corporate bonds, property and fixed deposits. In Zambia most insurance companies are also pension fund managers. National Pension Scheme Authority administers the government scheme and are the custodian of the Zambian government social security scheme.
A pension is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments. A pension is a type of retirement plan that provides monthly income after you retire from your position. The employer is required to contribute to a pool of funds invested on the employee's benefit. As an employee, you may contribute part of your wages to the plan, too. Not all businesses offer these plans. A pension is into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments
The Authority is mandated to protect the interests of pension scheme members and insurance policyholders; and promote the development of the pensions and insurance industries through effective regulation, supervision and excellence in service delivery. A pension scheme is simply a type of savings plan to help you save money for later life. And there are tax advantages compared with other types of savings.
It makes sense to put some money away for when you’re older – and that’s what pension schemes help you do. The definition of a pension scheme is it’s a type of long-term savings plan. And it’s a tax-efficient way to save money during your working life.
You save some of your income regularly during your working life. This gives you an income in later life, when you want to work less or retire. That’s the meaning of pension – security when you’re older. There are several types of pension schemes. Some might be run by your employer, others you can set up by yourself. Saving into one scheme doesn’t mean you can’t save into another, or use other tax-efficient savings plans
When the time comes for you to start enjoying your pension – you’ll have several options. These might include being able to take a tax-free lump sum, and the added security of being able to receive a regular income.
The National Pension Scheme Authority (NAPSA) was established in February 2000 by the National Pension Scheme Act no. 40 of 1996 of the Laws of Zambia. The Pensions and Insurance Authority (PIA) is the regulator of the pensions and insurance industry in Zambia. It is established as a body corporate. The Pensions and Insurance Authority (PIA) regulates and supervises pensions schemes, pensions and insurance service providers through a combination of off-site analysis and on-site inspections.
You will find a list of the various pension schemes in Zambia here.