Govt Urges Employers To Support Their Employees In Accessing Their Pension Benefits
Minister of Labour and Social Security has urged employers to support their employees in accessing and understanding their pension benefits.
Officiating at the launch of the 2024 Pensions Awareness Week in Lusaka, Brenda Tambatamba noted that pensions not only provide financial security to individuals in retirement years but also serve as a foundation for long-term economic stability.
“By encouraging individuals to save for their future through pension schemes, we are fostering a culture of personal financial responsibility and freedom,” Ms. Tambatamba stated.
She said government is currently working on making pensions more inclusive through pension scheme expansion, adding that this can be seen through, among other things the implementation of the National Pension Scheme Penalty Waiver Regulations, 2024, that seeks to provide relief to employers that have accrued penalties due to various challenges.
According to Ms. Tambatamba, the Penalty Waiver is also expected to financially assist employers that struggled especially in view of the Covid-19 pandemic that crippled most businesses, and ended up defaulting on their NAPSA obligations and consequently accumulated huge penalties.
“It would also reduce the debt burden for employers and allow them to clear their outstanding dues with an incentive that part of the debt would be written off,” Ms. Tambatamba noted.
She emphasized that the Pensions Week is a literacy campaign aimed at raising awareness on the importance of preparing and saving for retirement through a pension.”
“It is also aimed at helping Pension Scheme members to value and understand their pensions and plan better for their retirement,” she stated.
Speaking at the same event, Pensions and Insurance Authority (PIA) Board Chairperson, Peter Banda encouraged the Pensions Service Providers to undertake regular pensions awareness activities across the country.
“This is crucial in promoting financial literacy and security among individuals, especially considering the complexities of pension funds management. Effective pension awareness initiatives can empower individuals to make informed decisions about their retirement plans,” Mr. Banda asserted.
He further pledged the Authority’s commitment to regulating and supervising Pension Schemes and service providers, as well as promoting the development of the Pensions Industry in Zambia.
Meanwhile, PIA Registrar and Chief Executive Officer, Namakau Ntini said this year’s Pensions Awareness Week theme, which is, “empower your future: dignify your retirement with a pension,” emphasizes the importance of pension planning and savings in achieving financial independence after retirement.
“Pensions provide a secure stream of income in retirement thereby reducing destitution in old age. further, pension funds foster economic growth by contributing to the Gross Domestic Product (GDP) of a nation, promoting the financial and capital markets and participating in job creation.”
“I am confident that this dedicated approach to imparting information through such an undertaking, as the pensions awareness week is not an exercise in futility. I encourage you to participate actively in the events earmarked for this entire week as we aim to raise awareness on pension matters to promote financial inclusion with an objective of seeking to alleviate our people from old age destitution,” Mrs. Ntini said.
