CHAPTER 256
NATIONAL PENSION SCHEME ACT

Arrangement of Sections

PART I
PRELIMINARY

   Section

   1.   Short title

   2.   Interpretation

PART II
NATIONAL PENSION SCHEME AUTHORITY

   3.   Establishment of National Pension Scheme Authority

   4.   Functions of Authority

   5.   Powers of Authority

   6.   Director-General

   7.   Secretary, inspectors and other staff

PART III
NATIONAL PENSION SCHEME

   8.   Constitution of the National Pension Scheme

   9.   Benefits under Scheme

   10.   Vesting of existing fund and funds of the Scheme

   11.   Membership of Scheme

   12.   Contributing employer

   13.   Registration of contributing employers

PART IV
CONTRIBUTIONS

   14.   Responsibility for payment of contribution

   15.   Payment of contributions

   16.   Treating unpaid contributions as paid

   17.   Refund of contributions paid in error

PART V
BENEFITS

   18.   Conditions for the award of retirement pension

   19.   Amount of retirement pension

   20.   Duration of retirement pension

   21.   Lump-sum payment

   22.   Early retirement

   23.   Invalidity pension

   24.   Amount of invalidity pension

   25.   Duration of invalidity pension

   26.   Invalidity lump-sum payment

   27.   Establishment of medical boards and appointment of medical officers

   28.   Medical examinations

   29.   Survivor’s benefits

   30.   Family dependant

   31.   Survivor’s pension

   32.   Duration of survivors pension

   33.   Survivor’s lump-sum payment

   34.   Funeral grant

   35.   Adjustment of benefits

   36.   Time and manner of making claims

   37.   Repayment of benefits improperly received

   38.   Benefits to be inalienable

   39.   Transactional provisions for benefits

PART VI
MANAGEMENT OF SCHEME

   40.   Management objectives of Scheme

   41.   Investment of funds

   42.   Application of funds of Scheme

   43.   Appointment of actuary

   44.   Actuarial valuation of Scheme

   45.   Action of actuarial report

PART VII
MISCELLANEOUS

   46.   Vesting of assets and transfer of liabilities

   47.   Registration of property to be transferred

   48.   Legal proceedings

   49.   Protection against attachment

   50.   Transfer of staff

   51.   Offences and penalties

   52.   General penalty

   53.   Regulations

   54.   Repeal of Cap. 513 of the 1972 edition

      FIRST SCHEDULE

      SECOND SCHEDULE

AN ACT

to establish the National Pension Scheme Authority; to constitute the National Pension Scheme and to provide for matters connected with or incidental to the foregoing.

[12th December,1996]

Act 40 of 1996,

Act 9 of 2000.

PART I
PRELIMINARY

1.   Short title

This Act may be cited as the National Pension Scheme Act.

2.   Interpretation

In this Act, unless the context otherwise requires—

“appointed date” means the date appointed by the Minister under section 1;

“Authority” means the National Pension Scheme Authority established under section 3;

“average monthly earnings” means the amount determined under section 19;

“Chairperson” means the Chairperson under paragraph 1 of the First Schedule;

“contributing employer” means an employer designated by section 12 as a contributing employer;

“Director-General” means the Director-General appointed under section 6;

“existing fund” means the Zambia National Provident Fund;

“medical board” means a medical board established under section 37;

“member” means an employee who is required to contribute to the Scheme under section 8;

“national average earning” means the amount determined under section 19;

“pensionable age” means the age of fifty-five years;

“pensionable employment” means employment in respect of which contributions are payable under this Act;

“Secretary” means the person appointed under section 7;

“Scheme” means the National Pension Scheme constituted under section 8;

“Vice-Chairperson” means the Vice-Chairperson elected under paragraph 1 of the First Schedule; and

“repealed Act” means the Zambia National Provident Fund Act.

PART II
NATIONAL PENSION SCHEME AUTHORITY

3.   Establishment of National Pension Scheme Authority

   (1) There is hereby established the National Pension Scheme Authority, which shall be a body corporate with perpetual succession and a common seal, capable of suing and being sued in its corporate name, and with power subject to the provisions of this Act, to do all such acts and things as a body corporate may by law do or perform.

   (2) The provisions of the First Schedule shall apply to the Authority.

4.   Functions of Authority

   (1) The functions of the Authority shall be—

      (a)   implement the policy relating to the National Pension Scheme in accordance with this Act; and

      (b)   control and administer the Scheme.

5.   Powers of Authority

   (1) The Authority shall have power to—

      (a)   subcontract any of its functions to a consultant or corporation with proven experience in the particular function being subcontracted;

      (b)   give such directions as it may consider necessary regarding the operations of the Scheme; and

      (c)   do all such other acts and things as are necessary to give effect to the provisions of this Act.

   (2) In the performance of its functions, the Authority shall, subject to the provisions of this Act, not be subject to the control or direction of any person or authority.

6.   Director-General

   (1) There shall be a Director-General who shall be the Chief Executive officer of the Authority and who shall, subject to the control of the Authority, be responsible for the day to day administration of the Authority.

   (2) The Director-General shall be appointed by the Minister for a three year renewable term of office and shall be eligible for reappointment.

   (3) The Director-General shall attend meetings of the Authority and may address such meetings but shall have no vote.

7.   Secretary, inspectors and other staff

   (1) There shall be a Secretary of the Authority appointed by the Authority on such terms and conditions as the Authority may determine.

   (2) The other staff of the board shall be appointed by the Authority on such terms and conditions as the Authority may determine.

   (3) The Authority shall appoint inspectors for purposes of this Act.

   (4) The Director-General shall issue an identity card to each inspector.

   (5) An inspector shall have power, on production of the identity card issued to him under sub-section (4), to inspect any book, register, account, receipt or any document relating to contributions or to the provision to register or to contribute under this Act are being compiled with.

   (6) In inspecting the documents referred to in sub-section (5), the inspectors shall ensure that the records kept are in accordance with the provisions of this Act.

   (7) Any person who obstructs an inspector appointed under sub-section (3) in the exercise of his duties under this section shall be guilty of an offence and shall be liable upon conviction to a fine not exceeding five hundred thousand penalty units or to imprisonment for a term not exceeding three months or to both.

PART III
NATIONAL PENSION SCHEME

8.   Constitution of the National Pension Scheme

   (1) There is hereby constituted a Scheme to be known as the National Pension Scheme into which shall be paid all contributions authorised under this Act and out of which shall be met all payments authorised to be paid under this Act.

   (2) The Authority shall be the trustees of the Scheme.

9.   Benefits under Scheme

   (1) The Authority shall pay pension benefits to a member who—

      (a)   retires from employment on reaching the retirement age;

      (b)   retires five years before he reaches pensionable age and has contributed to the Scheme for a minimum period prescribed by the Authority; and

      (c)   has made contributions for at least twelve months and is certified by the medical board that he is incapable of gainful employment due to total or partial mental or physical incapacity which pension shall be determined by a formula by an actuarial study and prescribed by the Minister by statutory instrument.

   (2) The Authority may pay lump sum benefits under such conditions as the Authority may prescribe.

   (3) The Authority shall exchange the lump sum benefits referred to under sub-section (1) in accordance with actuarial advice, in such circumstances as may be prescribed.

   (4) On the death of the member, the Authority shall pay the pension benefits due to the member in accordance with the provisions of the Intestate Succession Act and the Wills and Administration of Testate Estate Act.

10.   Vesting of existing fund and funds of the Scheme

   (1) Without further assurance the existing fund shall be transferred to the Scheme and shall vest in the Authority which shall, subject to the provisions of this Act, have the sole management and control of it.

   (2) The funds of the Scheme shall consist of—

      (a)   the fund of the existing fund;

      (b)   the assets of the existing fund;

      (c)   the combined contributions of contributing employers and members determined by, statutory instrument, in accordance with actuarial valuation and paid into the Scheme;

      (d)   income and capital appreciation derived from the holding of the assets of the Scheme in any form; and

      (e)   such other money or assets as may accrue to the Scheme.

11.   Membership of Scheme

   (1) Every person who, before the commencement of this Act, is under pensionable age and is a member of the existing fund, shall be a member of the Scheme.

   (2) Every person who, on the commencement of this Act, is not a member of the existing fund under sub-section (1) and is not less than sixteen years but who is under pensionable age and is employed by a contributing employer, shall be registered as a member of the Scheme as provided for under section 13.

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