PRESIDENT HICHILEMA SIGNS LANDMARK PENSION REFORM BILL

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Posted by admin on June 5, 2026 at 4:56 AM

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President Hakainde Hichilema has assented to the National Pension Scheme (Amendment) Bill, No. 68 of 2026, ushering in sweeping reforms that modernise Zambia’s pension system and expand benefits for workers and retirees.

The new law introduces structured and regulated lump-sum access, allowing contributors to withdraw part of their benefits before or at retirement under clear rules and safeguards, while maintaining the principle of lifelong monthly pension payments.

Key reforms include Pension accrual rate increase from 1.33% to 1.5%, raising the income replacement rate from 40% to 45%.

Minimum pensions increase from 20% to 25% of National Average Earnings, lifting the floor from K1,708 to K2,135.

Introduction of a Survivors’ Pension to replace the one-off payment, guaranteeing continued financial support for dependants.

Creation of Pre-Retirement Benefit lump-sum access at retirement for greater flexibility.

Launch of Supplementary Savings and Diaspora Pension Schemes to expand retirement savings opportunities.

Introduction of mandatory second-tier occupational pension schemes under the Public Service Pension Fund and Local Authorities Superannuation Fund.

The law repeals and replaces the National Pension Scheme Act of 1996, strengthening governance, compliance, and benefit administration while aligning Zambia’s system with ILO Convention No. 102 on minimum standards of social security.

“This reform makes the pension scheme more adequate, inclusive, sustainable, and responsive to changing labour market realities and socio-economic conditions,” the Ministry of Labour and Social Security stated.