National Pension Scheme Authority
The National Pension Scheme Authority (NAPSA) was established after Parliament passed Act No. 40 in 1996 and became operation in 2000. The Authority was established to replace the Zambia National Provident Fund (ZNPF), which had existed since 1966.
Administration
NAPSA is administered by an independent tripartite Board appointed by the Minister of Labour and Social Security. It administers the assets of the National Pension Scheme (NPS) and the old Zambian National Provident Fund (ZNPF).
The ZNPF was a compulsory savings scheme for private-sector employees that provided lump sums to its members based on the cumulated balances of their individual member accounts. Contribution rates to the ZNPF were very low which, coupled with unfavourable economic conditions, lack of indexation and governance issues, translated into low benefit packages.
NAPSA's Objectives
NAPSA's primary objective is the payment of social security benefits which include old age, invalidity and survivors; divided into two categories:
- PENSION; this is the benefit payment which one receives at monthly intervals for the rest of their life until they die. In most cases this is passed on to the survivors who include the spouse and children unless the spouse remarries or the children are past the age of 18.
- LUMP – SUM; this refers to a benefit which is a one- off payment and once one has
