National Pension Scheme Act - National Assembly of Zambia

1 The Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of ZambiaREPUBLIC OF ZAMBIATHE National Pension Scheme ACTCHAPTER 256 OF THE LAWS OF ZAMBIACHAPTER 256 THE National Pension Scheme ACTTHE National Pension Scheme ACTARRANGEMENT OF SECTIONSPART IPRELIMINARYS ection1. Short title and commencement2. InterpretationPART IINATIONAL Pension Scheme AUTHORITY3. Establishment of National Pension Scheme Authority4. Functions of Authority5. Powers of Authority6. Director-General7. Secretary, inspectors and other staffThe Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of ZambiaPART IIINATIONAL Pension SCHEME8. Constitution of the National Pension Scheme9. Benefits under Scheme10. Vesting of existing fund and funds of the Scheme11. Membership of Scheme12. Contributing employer13.

2 Registration of contributing employersPART IVCONTRIBUTIONS14. Responsibility for payment of contribution15. Payment of contributions16. Treating unpaid contributions as paid17. Refund of contributions paid in errorPART V BENEFITSThe Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of ZambiaSection18. Conditions for the award of retirement Pension 19. Amount of retirement Pension 20. Duration of retirement pension21. Lump-sum payment22. Early retirement23. Invalidity pension24. Amount of invalidity pension25. Duration of invalidity pension26. Invalidity lump-sum payment27. Establishment of medical boards and appointment of medical officers28. Medical examinations29. Survivor's benefits30. Family dependant31. Survivor's pension32. Duration of survivors pension33.

3 Survivor's lump-sum payment34. Funeral grant35. Adjustment of benefits36. Time and manner of making claims37. Repayment of benefits improperly received38. Benefits to be inalienable39. Transactional provisions for benefitsPART VIMANAGEMENT OF SCHEME40. Management objectives of Scheme41. Investment of funds42. Application of funds of Scheme43. Appointment of actuary44. Actuarial valuation of Scheme45. Action of actuarial reportPART VIIMISCELLANEOUSThe Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of ZambiaSection46. Vesting of assets and transfer of liabilities47. Registration of property to be transferred48. Legal proceedings49. Protection against attachment50. Transfer of staff51. Offences and penalties52. General penalty53. Regulations54.

4 Repeal of Cap. 5l3 FIRST SCHEDULEPART IADMINISTRATION1. Composition of Authority2. Seal of Authority3. Tenure of office of member4. Removal of member5. Filling of casual vacancy6. Proceedings of Authority7. Committees of Authority8. Remunerations and allowances of members9. Disclosure of interest10. Prohibition of publication of, or disclosure of information to unauthorisedpersonsPART IIFINANCIAL PROVISIONS11. Funds of Authority12. Financial year13. Accounts14. Annual reportSECOND SCHEDULE Persons exempted from the provisions of the Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of ZambiaCHAPTER 256 National Pension SCHEMEAct No. 40 of 1996An Act to establish the National Pension Scheme Authority; to constitute theNational Pension Scheme and to provide for matters connected with orincidental to the foregoing.

5 [12th December,1996 PART IPRELIMINARY1. (1) This Act may be cited as the National Pension Scheme title andcommencement(2) This Act shall come into force on such date as the Minister may, by statutoryinstrument, In this Act, unless the context otherwise requires-Interpretation"appointed date" means the date appointed by the Minister under section one;"Authority" means the National Pension Scheme Authority .established undersection three;"average monthly earnings" means the amount determined under section nineteen;"Chairperson" means the Chairperson under paragraph I of the First Schedule;"contributing employer" means an employer designated by section twelve as acontributing employer;"Director-General" means the Director-General appointed under section six;"existing fund" means the Zambia National Provident Fund;"medical board" means a medical board established under section thirty-seven;The Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of Zambia "member" means an employee who is required to contribute to the Scheme undersection eight;" National average earning" means the amount determined under section nineteen;"pensionable age" means the age of fifty-five years;"pensionable employment" means employment in respect of which contributionsare payable under this Act.]

6 "Secretary" means the person appointed under section seven;" Scheme " means the National Pension Scheme constituted under section eight;"Vice-Chairperson" means the Vice-Chairperson elected under paragraph 1 of theFirst Schedule; and"repealed Act" means the Zambia National Provident Fund 273 PART IINATIONAL Pension Scheme AUTHORITY3. (1) There is hereby established the National Pension Scheme Authority, whichshall be a body corporate with perpetual succession and a common seal, capable of suingand 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 ofNational PensionScheme Authority(2) The provisions of the First Schedule shall apply to the (1) The functions of the Authority shall be-Functions of Authority(a) implement the policy relating to the National Pension Scheme inaccordance with this Act.

7 And(b) control and administer the (1) The Authority shall have power to-Powers of AuthorityThe Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of Zambia (a) subcontract any of its functions to a consultant or corporation with provenexperience in the particular function being subcontracted;(b) give such directions as it may consider necessary regarding the operationsof the Scheme ; and(c) do all such other acts and things as are necessary to give effect to theprovisions of this Act.(2) In the performance of its functions, the Authority shall, subject to the provisionsof this Act, not be subject to the control or direction of any person or (1) There shall be a Director-General who shall be the Chief Executive officer ofthe Authority and who shall, subject to the control of the Authority, be responsible for theday to day administration of the (2) The Director-General shall be appointed by the Minister for a three yearrenewable term of office and shall be eligible for reappointment.

8 (3) The Director-General shall attend meetings of the Authority and may addresssuch meetings but shall have no (1) There shall be a Secretary of the Authority appointed by the Authority onsuch terms and conditions as the Authority may , inspectorsand other staff(2) The other staff of the board shall be appointed by the Authority on such termsand 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 himunder subsection (4), to inspect any book, register, account, receipt or any documentrelating to contributions or to the provision to register or to contribute under this Act arebeing compiled with.(6) In inspecting the documents referred to in subsection (5), the inspectors shallensure that the records kept are in accordance with the provisions of this Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of Zambia (7) Any person who obstructs an inspector appointed under subsection (3) in theexercise of his duties under this section shall be guilty of an offence and shall be liableupon conviction to a fine not exceeding five hundred thousand penalty units or toimprisonment for a term not exceeding three months or to IIINATIONAL Pension SCHEME8.

9 (1) There is hereby constituted a Scheme to be known as the National PensionScheme into which shall be paid all contributions authorised under this Act and out ofwhich shall be met all payments authorised to be paid under this of theNational PensionScheme(2) The Authority shall be the trustees of the (1) The Authority shall pay Pension benefits to a member who-Benefits underScheme(a) retires from employment on reaching the retirement age;(b) retires five years before he reaches pensionable age and has contributed tothe Scheme for a minimum period prescribed by the Authority; and(c) has made contributions for at least twelve months and is certified by themedical board that he is incapable of gainful employment due to total orpartial mental or physical incapacity which Pension shall be determined by aformula by an actuarial study and prescribed by the Minister by statutoryinstrument.

10 (2) The Authority may pay lump sum benefits under such conditions as the Authoritymay prescribe.(3) The Authority shall exchange the lump sum benefits referred to under subsection(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 tothe member in accordance with the provisions of the Intestate Succession Act and theWills and Administration of Testate Estate 59 Cap. 60 The Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of Zambia10. (1) Without further assurance the existing fund shall be transferred to theScheme and shall vest in the Authority which shall, subject to the provisions of this Act,have the sole management and control of of existingfund and funds of theScheme(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 membersdetermined by, statutory instrument, in accordance with actuarial valuationand paid into the Scheme ;(d) income and capital appreciation derived from the holding of the assets ofthe Scheme in any form.