The Ministry of Labour and Social Security has dispelled media reports alleging that government intends to hike NAPSA employee contributions from five to 10 per cent and abolish the private pension scheme.
The Ministry’s Permanent Secretary Barnaby Mulenga said contrary to the assertions, there has not been any such proposals by government with regard to NAPSA contribution rate.
He stated that procedure for adjusting the contribution rate could only be done after passing the law, determining the benefits package and undertaking actuarial evaluation which should inform such an adjustment either upwards or downwards “of which this process has not yet been done”.
Mulenga stated further stated that there had not been any proposals to abolish private pension schemes as alleged by media reports.
He stated that government was consulting with various stakeholders on pension reforms and the outcome of such a procedure would be availed to the public .
Mulenga further clarified that the said consultations were “not even about hiking contribution rates for NAPSA or to abolish private or occupational pension schemes”.