Government has dispelled media reports indicating that it is planning to abolish private pension schemes and hike NAPSA contributions from 5 to 10 percent employee and employee contributions respectively.
Ministry of Labour and Social Security permanent secretary Barnaby Mulenga says in a statement to the Media that government has not made any proposal regarding the NAPSA contribution rate.
Mr. Mulenga explains that the procedure for adjusting the NAPSA rate can only be done after a law to determine the benefits package is passed and an evaluation informing whether the adjustment should be upward or downward.
He says this process has not been done.
The permanent Secretary says government is consulting with various stakeholders on pension reforms and the outcome of the consultations will be made public.
Mr. Mulenga further clarifies that the consultations have nothing to do with hiking NAPSA contribution rates or considerations of abolishing private or occupational pension schemes.