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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 239 registered pension schemes in Zambia with a total membership of 112,260 as at the end of December 2015.  The combined net assets as December 2015 stood at K 5.66billion (K4.99billion in 2014).

Return on average net assets during the year under review was 19% (2014: 14.6%). This was however, below the annual inflation rate of 21%.

 On the management of pension funds, the industry has seven (7) pension scheme managers and six (6) pension scheme administrators.