251 Million Kwacha out of K555 Million has been disbursed by the Ministry of Finance to the Local Authority Superannuation Fund to settle out standing pension benefits to Local authority pensioners across Zambia.
Speaking at a media briefing, Local Government Minister Dr Charles Banda says Local Authorities Superannuation Fund owes about 14,709 retirees a total bill of 555 Million kwacha
Dr Banda says the remaining 304 Million Kwacha will be disbursed when the government solicits the funds.
“The released funds will go a long way in addressing some challenges currently being experienced by the Local Authorities Superannuation Fund, especially regarding the dismantling of the pension benefits and annuities that have been outstanding” Dr Band said.
Dr Banda emphasized that the release of the funds does not absolve the local authorities and other employers that contribute to the fund from defaulting on remittance of pension contributions.
He said there is need for local authorities and other employers that contribute to the fund to intensify their contributions so that Local Authorities Superannuation Fund can be able to meet its obligation.
“As you know the remittance of pension contribution is a statutory requirement and failure to do so is abrogating the law” Dr Banda noted.
He added that government will not tolerate any local authority or other member employers that will deliberately abrogate the law by failing to remit pension contributions.
The K251 million to the Local Authorities Superannuation Fund is the second financing of retirement benefits after government released K150 million in April 2017.