NAPSA

BENEFITS GUIDE
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CORPORATE BACKGROUND
The National Pension Scheme Authority (NAPSA) was established by an Act of Parliament,
the National Pension Scheme (NPS) Act Number 40 of 1996.
NAPSA became operational on 1st February 2000 following the closure of the then Zambia
National Provident Fund (ZNPF) which had been in existence since 1966. All assets and
liabilities of the ZNPF were vested in NAPSA.
The formation of NAPSA was also in response to the changing labour market and was aimed at
creating an efficient social security institution that would deliver quality services and contribute
to national development.
MANDATE
NAPSA was formed to provide income security through payment of benefits to all workers
when they reach retirement age or become invalid, or to a member’s family in the event of
death of the member.
VISION STATEMENT
A trusted partner that protects people’s future and brings pride to the Nation.
MISSION STATEMENT
Securing the social economic wellbeing of the people of Zambia.
CORE VALUES
Integrity - “Do the Right Thing”
Collaboration - “Work Together”
Accountability - “Be Responsible for Your Actions”
Respect - “Listen to Every Voice”
Excellence - “Perform at Your Best”
BENEFITS PAID BY NAPSA
under the formal sector scheme, NAPSA pays out three principal benefits: retirement,
invalidity and survivors. In addition to these, NAPSA provides a funeral grant to survivors of
the deceased member.
RETIREMENT BENEFITS
Following the recent assent of the National Pension Scheme Amendment Act No. 7 of 2015 on
14th August 2015, pensionable age for members of NAPSA was revised as follows;
• Early retirement age - previously 50 years, now 55 years
• Normal retirement age - previously 55 years, now 60years.
• Late retirement age - 65 years.
Members who joined NAPSA after 14th August 2015 can claim their benefits at 55 (Early
retirement pension only), 60 or 65 years of age for Normal and Late retirement benefits
respectively, while members who joined NAPSA before 14th August 2015 are not affected
by the amendment of the act and have accrued rights to claim their benefits at 50 (Early
retirement pension only) and 55 years for normal retirement benefits, and can also opt to
retire at 60 or 65 years of age for Normal and late retirement respectively . Members who had
already attained pensionable age (55years) on 14th August, 2015 do not have rights under the
provisions of the amended Act to retire at 60 or 65 years.
Any registered member who has reached the age of 55, 60 and 65 years and has made a
minimum of 180 months of contribution qualifies for a pension.

ADDITIONAL QUALIFYING CRITERIA

Members need to provide proof of retirement by way of the following;
• Retirement letter issued by employer
• Resignation letter
• Acceptance letter from employer stating they have retired
• Dismissal letter issued by employer

NAPSA BENEFITS GUIDE

INVALIDITY BENEFITS
Any registered member with a minimum of
60 months of contributions and has become
disabled to an extent that they can no longer
work (as determined by a medical board), is
eligible for invalidity pension provided they have
12 contributions within 36 months of becoming
invalid, and member should be below pensionable
age.
A registered member with less than 12
contributions within 36 months of becoming
invalid or with less than 60 months of contributions
is eligible for an invalidity lump sum.

SURVIVOR’S BENEFITS
If a member passes away, their spouse(s),
biological and legally adopted children are
eligible to receive a survivor’s lump sum.
Where there are no spouse(s) or children
the administrator appointed by the court
for the deceased’s estate will be eligible
to receive a survivor’s lump sum.
If a retirement or invalidity pensioner
passes away, their spouse(s), biological
children and legally adopted children are
eligible to receive a survivor’s pension.
The amount payable is divided among the following eligible beneficiaries (2 shares for a
spouse and 1 share per child)
• Spouse
• Child under the age of 18 years
• Child under the age of 25 years in formal education
• Unborn child (at the death of member)
• Child of any age physically or mentally incapacitated by the age of 18 and at the death
of the member.

FUNERAL GRANT
If a registered member passes away, NAPSA provides
a funeral grant to help cover the costs of the funeral. To
qualify for this grant, the member must have made at
least 12 monthly contributions during the last 36 months
of their life.
In the event that a retirement or invalidity pensioner
passes away, the funeral grant is paid whether the
member made at least 12 monthly contributions during
the last 36 months of their life or not.

NAPSA BENEFITS GUIDE

 RETIREMENT PENSION
= Registered member
= Payable at age 60
= 120 contributions or more
= Minimum monthly pension for informal sector
members shall be one third of the minimum
pension prescribed in the Act
= Lump sum payment will be made to members
who do not make more than 120 contributions
at time of retirement

INVALIDITY PENSION
= Below retirement age of 60
= Certied permanent invalidity by medical
board of health
= Made a minimum of 60 contributions
= 12 or more contributions should have been paid in the
36 months before contingency
= Lump sum payment will be payable to members who
do not meet conditions of eligibility for invalidity pension

SURVIVOR’S PENSION
= Paid upon death of a pensioner or member entitled
to a pension
= Spouse, child or registered dependant of the deceased
member may receive this pension
= Total benet is shared amongst all eligible beneciaries
= Eligible children below 18, and up to 25 if in school

NAPSA BENEFITS GUIDE

 MATERNITY BENEFIT
= Paid to female contributing members
= Member must have made at least 12 contributions
in last 36 months
= Benet will be paid for 3.5 months at 50 percent of the
monthly average income applicable in a respective year.
= 24 months in between births

FAMILY FUNERAL BENEFIT

= Paid upon death of contributing member, registered
spouse, registered child or dependant of member
or if at time of death, the deceased registered member
was in receipt of retirement or invalidity pension
= Spouse must be registered
= Entitlements are 20 percent for member, 20 percent for
spouse, and 10 percent per child of the prevailing
funeral grant
= Maximum of 6 family members under age 18 and
up to 25 years for those in school
= Family funeral grant is nullied when a survivor’s
benet is paid

WEATHER INDEX INSURANCE BENEFIT

= NAPSA will out source the provision of this service to an
Insurance Company through an MOU
= Membership to the NAPSA Informal Scheme is a prerequisite
= Weather Index Insurance will be paid out in cases of bad
weather conditions such as drought, dry spells and excessive
rainfall
= Weather Index Insurance covers the above weather risks ONLY.
It does not cover the actual crop or other risks such as pest
and disease
= Registration for Insurance cover can start between
21st December to 31st March
= A gross premium amount of K50 will have a maximum payout
of K500
= Claim payments are done automatically based on weather
conditions. There is NO need for farmers to report claims as
the claim payments are on the basis of bad weather conditions,
as monitored by the satellite.

ACCESS TO CREDIT BENEFIT

= NAPSA will out source the provision of this service to a
Financial Institution through an MOU
= Membership to the scheme is a prerequisite

The Corporate Affairs Office

Tel: +260 211 395677, Toll free Line 677 Fax: +260 211 221195
Email: [email protected]

Toll free hotline: 5080

 FREQUENTLY ASKED QUESTIONS
CAN I GET ANY OTHER BENEFITS APART FROM THE MONTHLY PENSION?
Members who don’t meet the qualifying criteria for a pension are paid either retirement lump
sum, invalidity lump sum or survivor’s lump sum.
HOW ARE BENEFITS CALCULATED?
All lump sum benefits are calculated using the following components;
• Total employee contributions
• Total employer contributions
• Index amount (compensation for loss of value)
• Interest amount

Formula :
Lumpsum = Total contribution + indexation + Interest

Normal retirement and survivor’s pension benefits are determined using the following
components;
• Average Indexed Monthly Earnings.
• Replacement rate (0.001111 x M)
Where M=Months of pensionable employment
Formula :
Normal Retirement Pension= Average Indexed Monthly Earnings X 0.001111xM

Early retirement pension benefits are determined using the following components;
• Average Indexed Monthly Earnings.
• Replacement rate (0.001111 x M), where M=Months of pensionable employment.
• Number of months between Early Retirement and attainment of Normal Retirement.
Formula :
Early Retirement Pension = Normal Retirement Pension - (0.005 x Normal
retirement Pension x M)

Invalidity Pension benefits are determined using the following components; Average Indexed
Monthly Earnings.
• Compensation for lost years
• Average Indexed Monthly Earnings.
• Number of years lost from works because of invalidity
• Greater of monthly pension and minimum pension.

Formula :
Invalidity Pension =(0.005 x Average Indexed Monthly Earnings x No. of years lost
from work due to invalidity) + the greater of Normal Retirement Pension or Minimum
Pension.

WHAT IS COMPENSATION FOR LOSS OF VALUE?

Compensation for loss of value of a member’s contributions to National Average Earning
(NAE) which counters the effect of wage inflation, and the indexation factor applied to each

NAPSA BENEFITS GUIDE

year of contributions is calculated as follows;

NAE in year of statutory retirement/invalidity/death

NAE in year of contributions

WHAT IS THE LOWEST PENSION NAPSA PAYS?

The NPS Act provides for a minimum pension. This is the lowest monthly retirement or
invalidity pension payable in a given year and is computed as follows:
20% of National Average Earnings (NAE) applicable in the year of retirement or invalidity, as
obtained from the central Statistical Office. For example;

2015 = 20% of 3,981.00 = 796.20

2016 = 20% of 4,219.86 = 843.97
2017 = 20% of 4,473.04 = 894.61
2018 = 20% of 4,975.00 = 995.00
2019 = 20% of 5,369.00 = 1,073.80
2020 = 20% of 5,748.00 = 1,149.60
2021 = 20% of 5,797.00 = 1,159.40
2022 = 20% of 6,109.00 = 1,221.80

HOW LONG ARE PENSIONS PAID FOR?

NAPSA monthly pensions are paid to the member for life and are converted to a survivor’s
pension when the member passes away.
Invalidity pensions are converted to retirement pensions when the member attains normal
retirement age.
Continued payments of the pension are dependent on annual submission of a pension life
certificate by all pensioners (retirement, invalidity, and survivor’s).

DOES THE RATE OF PENSION REMAIN THE SAME OVER THE YEARS?
All NAPSA pensions in payment are adjusted annually in line with changes in NAE (wage
inflation).

WHAT HAPPENS TO MY CONTRIBUTIONS IF I PASS AWAY?

Survivor’s benefits are paid when a member passes away, regardless of their age.

HOW IS FUNERAL GRANT CALCULATED?

Funeral grant is computed as follows:
10 x the minimum pension applicable in the year of the member’s death.
Example
2016 = 10 x 843.97 =8,440.00

NAPSA BENEFITS GUIDE

 2017 = 10 x 894.16 =8,946.08
2018 = 10 x 995.00 = 9,950.00
2019 = 10 x 1,073.80 = 10,738.00
2020 = 10 x 1,149.60 = 11,496.00
2021 = 10 x 1,159.00 = 11,590.00
2022 = 10 x 1,221.80 = 12,218.00

HOW WILL I KNOW HOW MUCH I WILL BE PAID?

NAPSA contribution statements provide the principal amount payable, consisting of
employee and employer contributions. The principal amount will be indexed to wage inflation
(compensation for loss of value of the contributions over time), and interest will be added.

HOW DO I APPLY FOR BENEFITS?

Once a member reaches retirement age, and provides proof of retirement, becomes invalid, or
passes away, the member or surviving beneficiaries should visit their nearest NAPSA offices
or mobile office with an original Identity Document for advice on how to claim their benefits.
Once eligibility is determined, a claim form will be issued together with instructions on the
completion and guidance on supporting documents.

HOW LONG DOES IT TAKE TO GET MY BENEFITS?

It takes up to 14 days to pay a retirement lump sum benefit if all beneficiary details and
contributions are made available and the necessary documents have been submitted. In the
case of survivor’s benefits, payment is made within 21 days.
Missing contributions and beneficiary data tend to delay processing of benefits. Members
are encouraged to regularly check their contribution statement and update details of their
spouse(s), biological, and legally adopted children.

HOW ARE BENEFITS PAID?

All benefits are paid by bank transfer. Monthly pensions are paid into pension accounts that
are opened for the pensioners by NAPSA.

HOW DO I VERIFY MY BENEFITS?

Benefits payable can be verified from the nearest NAPSA office where the payments voucher
can be obtained.

CAN I CONTINUE CONTRIBUTING TO NAPSA AFTER I RECEIVE A BENEFIT?

A member who has claimed a benefit cannot rejoin the scheme and is encouraged to formally
notify their employer if they continue working or enter employment again.

WHAT HAS HAPPENED TO THE CONTRIBUTIONS I MADE TO THE ZNPF?

NAPSA has continued paying benefits on behalf of the ZNPF. Benefits payable under ZNPF
are:
1.  Age - payable in the year the member attains 50years.
2.  Retirement - payable in the year a member attains 50 years.
3.  Survivor’s and funeral grant.
4.  Physical disability.
5.  Mental disability

NAPSA BENEFITS GUIDE

 6.  Home ownership - withdrawal for building or purchasing a house-requires the member
of 24 months of contributions.
7.  Supplementary savings - voluntary contributions.
8.  Emigration

ARE ZNPF BENEFITS ADJUSTED TO INFLATION?

ZNPF benefits are not adjusted to inflation. Interest is however paid on all contributions.

CAN I CLAIM MY ZNPF BENEFITS TOGETHER WITH MY NAPSA BENEFITS?

Members can claim their ZNPF and NAPSA benefits at the same time if they meet the
qualifying criteria for both benefits. Members will have to complete the respective claim forms.
NAPSA further provides for the conversion of ZNPF contributions, to NAPSA contributions,
to enhance the chances of qualifying for a pension at a rate of 12 ZNPF months to 3 NAPSA
months. Conversion of contributions is possible if a member has not claimed House Ownership
Benefit under ZNPF.
- Normal Retirement Invalidity Pension Survivor’s Pension Funeral Grant
Pension payable at 55/60 - -Any age before pensionable - Pensioner dies - At least 12 contributions in
years with a minimum of 15 age - Spouse and biological/legally the last 3 years of deceased
years of contribution/180 - Five years of contribution adopted children are paid members life.
months - Atleast 12 contributions must
- Early retirement payable at have been made in the last
50/55 years 36 months prior to being
- Late retirement payable at declared invalid
65 years - Declared mentally or
physically ill and cannot do
any kind of work

eBENEFITS
As a customer centric organization, NAPSA launched a new platform for claiming benefits
online called eBenefits, which uses a portal under the eNAPSA for submission of Napsa
Retirement benefit claims and for renewal of pension life certificates. With this innovation, a
person who has retired can submit their claim online from the comfort of their home or office,
after working hours and during weekends and holidays on https://enapsa.napsa.co.zm/.
The online application process has been simplified to allow members to fill in very few details
because the digital application form comes already populated with information from the
claimant’s account.
The platform has several other benefits.
• It is easy, convenient, reliable, and fast.
• There are no queues, therefore promotes social distance considering the “new normal”.
• There is no usage of fuel to travel to NAPSA offices, therefore supporting, environmental
sustainability and cost-saving on the part of the member.
• There is more time for claimants to focus on other equally important tasks.
• The claim status can be tracked in real time.
• For NAPSA, it enhances efficiency in claim processing and reduce the turnaround time,
thereby increasing customer satisfaction.

The security aspect has been taken care of by the availability of video conferencing technology
which allows for direct interaction with the claimant. The multi-layered security systems
implemented by the Authority also provide the required extra protection against cyber threats.

NAPSA BENEFITS GUIDE

 P.O. Box 51275
Levy Business Park
Corner of Church & Kabelenga Roads, Lusaka
YourNAPSA | MyNAPSA
+260 973 000 677 | [email protected] | www.napsa.co.zm | NAPSA
Tel: +260 211 395 677 | Contact Center Toll-free Line 677 | Integrity Toll-free Hotline 5080