By Patricia Male
Cabinet has approved, in principle, the introduction of a bill in parliament to amend the National Pension Scheme Act No. 40 of 1996 so as to provide members of the scheme an option to access part of the contributions before retirement.
Government has made a policy pronouncement on the need for a partial access to pension contributions by members of the National Pension Scheme through President Hakainde Hichilema’s inaugural address to parliament, the UPND manifesto 2021-2026 and the 2022 budget speech, combined, as some of the policy documents that have pronounced the introduction of partial pension benefits.
Chief Government Spokesperson Chushi Kasanda has said in a statement that the decision was arrived at during the 24th cabinet meeting held on Friday, 14th October, 2022 chaired by President Hichilema at state house.
Ms. Kasanda however says the National Pension Scheme Act No. 40 of 1996, in its current form, does not allow for the implementation of the policy pronouncement on partial access to pension contributions by members of the national pension scheme.
She states that to implement this policy pronouncement, it is necessary for the act to be amended adding that cabinet is convinced that this is a good policy decision as it will allow employees to start planning for their retirement early enough.
During the same meeting, Ms. Kasanda says cabinet approved, in principle, the introduction in parliament of a bill entitled “the constituency development fund –amendment- bill, 2022, to repeal and replace the Constituency Development Fund Act No. 11 of 2018.
She says cabinet observed that the constituency development fund act, enacted in 2018, does not adequately provide for the manner of decentralization as envisaged by government and further that there is need to strengthen the application, disbursement and management of the CDF.
Ms. Kasanda adds that with the massive increase of CDF, it is necessary that there is no impediment in the provision of services to the people and wants to ensure development is delivered in the most-quicker manner to facilitate increased absorption of the CDF countrywide.
CREDIT: PHOENIX NEWS
