Administration of NAPSA

1. Membership to NAPSA is compulsory for all regularly employed persons including those to the then Zambian national Provident Fund and those joining the civil service and Local Authorities after 1st February 2000.
2. The scheme is financed by both the employer and employee contributions at the rate of 5% each subject to ceiling determined annually using nation average earnings.
3. The scheme will provide for regular and lifelong monthly retirement and invalidity pensions including a survivors’ pension.
4. A lump sum funeral grant will be paid the next of kin or any other person responsible for the funeral expenses in case of death of a member.
5. The scheme will be earnings related for the purpose of both contributions and benefits.
6. Pensions will be reviewed annually and will be adjusted in line with increases in the National Average Earnings (NAE).
7. The statutory ceiling will be four times the National Average Earnings (NAE).
8. Pensioners will collect their monthly pensions from banks of their choice or other designated administrative facilities to be arranged by the Authority for convenience of pensioners.
9. The scheme is contributory that is so to say that it will be financed from contributions by the employers and employees.
10. The early retirement pension will be payable from age 50 to 55.

Minimum Pension

A minimum pension is calculated at 20% of National Average Earnings will be paid to members for cases where the basic pension falls below the minimum pension. The survivors’ pension however will not be raised to the minimum pension. In cases where a member does not qualify for a basic pension, the Authority will pay a lump sum amount.

Conversion of ZNPF Balances

A person covered under the ZNPF may convert his contributions under ZNPF to months of pensionable employment under NAPSA. This will be applicable to people under the age of 39 as of 1st February 2000.

Rate of Conversion

A person who qualifies to convert the ZNPF balances shall be credited with three months pensionable employment for each twelve months of ZNPF contributions. The person who qualifies to convert the ZNPF balances will exercise their option not to convert the balances as their rights under the ZNPF will be preserved.

Limit on Earnings

The minimum level of earnings below which employees will not be required to be members of NAPSA is K15, 000.00.