MPs Urged to Lead Public Education on Pension Reforms
Minister of Labour and Social Security, Brenda Mwika Tambatamba, has urged Members of Parliament to take the lead in educating citizens on the country’s ongoing pension reforms, noting that the changes are crucial to securing workers’ financial stability throughout their lives.
Speaking at the close of a stakeholders’ forum on pension reforms with the Parliamentary Committee on National Economy, Trade and Labour Matters and other MPs, Ms Tambatamba said the reforms aim to ensure that workers enjoy meaningful retirement and old-age benefits.
She emphasised that many people reach a stage in life when they can no longer rely on physical strength, making it vital to build solid income sources for their post-employment years.
“We must ensure that when their bodies can no longer carry the burden of labour, their years of service continue to provide for them,” she said.
The Minister explained that the reforms are designed to enhance productivity and economic stability by giving the public confidence that their contributions today will translate into dependable support in the future.
She encouraged MPs to act as advocates in their constituencies to help citizens understand the long-term value of a sustainable pension system.
“You are the closest link to the people. It is important that you explain these reforms clearly,” she said, adding that the Ministry would intensify engagement with MPs to ensure they fully understand the objectives and implications of the changes.
Kamfinsa MP Christopher Kangombe pledged to champion the reforms within his constituency.
Key proposed measures include increasing the NAPSA income replacement rate from 40% to 45% and raising the minimum pension from 20% to 25% of national average earnings. The reforms also propose maintaining the option for a 20% pre-retirement lump sum at the point of retirement, with considerations underway to increase this to 25% without compromising pension adequacy or scheme sustainability.
Additionally, public workers employed after 2000 – such as teachers, police officers and health personnel – will be allowed to contribute to the Public Service Pensions Fund (PSPF) alongside NAPSA, while workers in local authorities and utility companies will contribute to the Local Authorities Superannuation Fund (LASF).
Voluntary additional contributory schemes under NAPSA, PSPF and LASF are also being proposed to allow workers to enhance their lump-sum benefits.
The reforms further aim to increase public service workers’ pensions by adding a 20% income replacement ratio to the 40% provided by NAPSA, delivering at least a 60% replacement rate at retirement. With enhanced NAPSA benefits, civil servants will ultimately receive a combined 65% income replacement rate.
