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Pensions Industry in Zambia

The Pension industry in Zambia is largely a two pillar system – the compulsory pillar and the voluntary pillar.  All employed individuals in the formal sector are compelled to contribute to one of the three public schemes namely the Public Service Pension Fund (PSPF), the National Pension Scheme (NPS) managed  NAPSA and the Local Authority Superannuation Fund (LASF).  This pillar is effectively not under the supervision of the Pensions and Insurance Authority but in the proposed bill all statutory pension schemes are expected to be supervised by the Pensions and Insurance Authority. 

The voluntary pension pillar is comprised of Trusts that are established by employers and are supervised by the Pensions Insurance Authority. There are currently 245 registered pension schemes in Zambia with a total membership of 107,293 as at 30th September 2018. 

The pensions net assets as at 30th September 2018, stood at K 7.028 billion compared to K6.432 billion of the same period in 2017.

Investment income stood at K375 million in the third quarter of 2018 as compared to K279 million in the same period of 2017. The return on net assets during the quarter ended 30th September 2018 closed at an annualized figure of 21%.

In terms of the investment portfolio, property and term deposits accounted for 27% each, listed equities at 20%, government bonds at 11%, corporate bonds at 6%, insurance and collective investment schemes at 3% each, treasury bills at 2% and unlisted equities at 1%.