• It will be wrong to ask government to direct new civil servants to be members of the PSPF other than NAPSA.
• NAPSA has over the years transformed into a reliable and stable pension fund.
• The Public Service Pension Fund should compete based on their services
Labour Institute of Zambia (LIZ) says it does not support the proposal that the newly recruited health workers and teachers should make their contributions to the Public Service Pension Fund (PSPF) other than National Pension Scheme Authority (NAPSA).
Speaking in an interview with Money FM News, Institute Programme Manager John Lukonde stated that in a free market economy, workers should be given a choice to get pension membership based on competitiveness of the fund and other services that are provided to make a particular pension fund more attractive.
Mr. Lukonde noted that NAPSA has over the years transformed into a reliable and stable pension fund but what is required are reforms to allow for mid-term claim of benefits.
“Comrade Hikaumba has a very valid opinion but in a free market economy it will be wrong to ask government to direct new civil servants to be members of the Public Service Pension Fund other than NAPSA.”
“Workers should rather be given a choice to get pension membership based on competitiveness of the fund and other services that are provided to make a particular pension fund more attractive. The Public Service Pension Fund should compete based on their services,” Mr. Lukonde said.
He added that the Institute stands ready to work with all pension houses and propose expectations that can influence the legal and operational framework in the new NAPSA Act as government opens discussion for reforms.
Recently, Movement for Democratic Change (MDC) Vice President for Politics Leonard Hikaumba appealed to government to ensure that the newly recruited 41,772 civil servants contribute to the Public Service Pensions Fund (PSPF) instead of being members of National Pensions Scheme Authority (NAPSA).
Mr. Hikaumba noted that the Public Service Pensions Fund has been depleted of new capital injection because all civil servants who are newly recruited automatically become members of NAPSA.