• 237, 401 members have so far claimed their pre-retirement lump sum benefits
• The K6.2 billion constitutes K3.6 billion in terms of raw contributions.
• NAPSA has a diversified investment portfolio in infrastructure, fixed term deposits, among others.
National Pension Scheme Authority (NAPSA) has disclosed that it has paid out K6.2 billion in pre-retirement lump sum benefits as of 31st May, 2023.
Speaking in an interview with Money FM News, Authority Head-Corporate Affairs, Cephas Sinyangwe revealed that 237, 401 members have so far claimed their pre-retirement lump sum benefits across the country.
Mr. Sinyangwe stated that the K6.2 billion constitutes K3.6 billion in terms of raw contributions made by members and their employers, while the difference of K2.5 billion is the total indexation and interest, which is the value that NAPSA has added to the K3.6 billion through its various investments.
“As at today 31st May 2023, NAPSA has paid a total amount of K6.2 billion to over 737, 000members who have claimed pre-retirement lump sum benefits. The composition of this K6.2 billion which basically constitutes K3.6 billion in terms of raw contributions, when we speak about raw contributions we are talking about contributions from workers and their employers and the difference of K2.5 billion is the value that NAPSA has added to this K3.6 billion and this is the money that is coming as a result of indexation and interest that the Authority is adding to the money through its various investments.”
“NAPSA has a diversified investment portfolio in infrastructure, fixed term deposits, government bonds and treasury bills, real estate among others. All these are there to make sure that the authority makes a return on behalf of the members. It is this return that goes towards enhancing the value of the money.
He added that the returns are used to benefit the members by uplifting those who do not qualify even for a minimum pension.
Those are being uplifted at least to a minimum pension, the difference of the uplifting is money that is coming from the returns that the Authority is making on its investments which investments are also going towards contributing to economic growth, job and wealth creation,” he added.
On 17th April, 2023, President Hakainde Hichilema signed into law the National Pension Scheme Amendment Bill 2023 which allows for partial withdrawal of pensions, and the amount that can be withdrawn is limited to a maximum of 20 percent of the total balance.
