Zambia News

NAPSA financially stable and can handle high demand for claims

Because it is one of the most financially stable institutions in the nation, the National Pensions Scheme Authority (NAPSA) has said that no one should have any reason to doubt its ability to handle the enormous demand for claims made by those wishing to collect their partial retirement benefit.

The National Pensions Scheme Amendment became law on Monday after being approved by President Hakainde Hichilema. The amended law now permits contributors to withdraw a portion of their pensions.

Since then, there has been a huge influx of people waiting in line outside NAPSA offices around the nation to start the process of withdrawing 20% of their contributions to the authority.

Concerns regarding the Authority’s capacity to meet this demand have been raised by the public response, although director general Muyangwa Muyangwa has said there is no need for fear.

When he appeared on Hot FM’s Red Hot Breakfast Show, Mr. Muyangwa made this statement.

“Maybe let me put this in context, a lot of Zambians do not know what NAPSA is. I would encourage them to ask the banks. NAPSA is one of the most liquid institutions in this country and that is why you find everyone with a proposal rushes to NAPSA,”he said.

He stated that making a K11 million payout over time would not jeopardize NAPSA’s sustainability because the body had already laid out a plan for appropriateness.

“There is no way that K11 million over time is going to threaten NAPSA.  NAPSA is not that small, it is quite a big institution and we have a plan laid out on how to meet the payment.

“Let us talk about the K1.3 million that was paid, this collection was in hours. That is not even a week’s collection. That is hours so in terms of suitability, that is not even a factor. NAPSA is here to stay and people will get their money,” he said.

He boasted that NAPSA has a large number of investments that earn interest while also collecting monthly contributions.

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