CHAPTER 256
NATIONAL PENSION SCHEME ACT
Arrangement of Sections
Section
PART I
PRELIMINARY
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. Retirement and condition for award of retirement pension
19. Amount of retirement pension
19A. Minimum 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. One-off age 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
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.
[1st February, 2000]
Act 40 of 1996,
Act 9 of 2000,
Act 7 of 2015,
Act 20 of 2022,
Act 1 of 2023,
SI 134 of 1999,
SI 35 of 2000.
PART I
PRELIMINARY
This Act may be cited as the National Pension Scheme Act.
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 60 years;
[Subs by s 2 of Act 7 of 2015.]
"pensionable employment" means employment in respect of which contributions are payable under this Act;
"pre-retirement lump-sum benefit" means a one-off benefit payable to a member who has not yet attained pensionable age;
[Ins by s 2 of Act 1 of 2023.]
"residual contributions" means the remainder of the contributions on a member’s account after a member has accessed the one-off pre-retirement lump-sum benefit;
[Ins by s 2 of Act 1 of 2023.]
"repealed Act" means the Zambia National Provident Fund 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
“Zambia Statistics Agency” means the Zambia Statistics Agency established under the Statistics Act, 2018;
[Ins by s 2 of Act 1 of 2023.]
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.
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.
(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.
(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 re-appointment.
(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.
(1) The Authority shall pay pension benefits to a member who—
(a) retires from employment on attaining the pensionable age;
[S 9(1)(a) subs by s 3 of Act 7 of 2015.]
(b) retires five years—
(i) before attaining the pensionable age and has contributed to the Scheme for a minimum period prescribed by the Authority; or
(ii) after attaining the pensionable age; or
[S 9(1)(b) subs by s 3 of Act 7 of 2015.]
(c) has made contributions for at least 12 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) Despite sub-section (1), the Authority may pay a one-off pre-retirement lump-sum benefit to a member who has met the requirements specified under section 21A.
[S 9(2) ins by s 3(a) of Act 1 of 2023.]
(3) The Authority may pay lump sum benefits under such conditions as the Authority may prescribe.
[S 9(2) renumbered as s 9(3) by s 3(b) of Act 1 of 2023.]
(4) 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.
[S 9(3) renumbered as s 9(4) by s 3(b) of Act 1 of 2023.]
(5) 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.
[S 9(4) renumbered as s 9(5) by s 3(b) of Act 1 of 2023.]
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;
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