THE National Pensions Scheme Authority (NAPSA) is owed over K2.7 billion in principle and penalties by public sector entities including Government, board chairman Teddy Mulonga has revealed.
But Minister of Labour and Social Security Fackson Shamenda said Government was currently undertaking the pension reforms.
He said President Edgar Lungu wanted the see the Pensions Act reformed before 2016.
Speaking during the orientation meeting on operations of NAPSA, Mr Shamenda said the amendment to the pensions Act would be presented to Parliament during the next sitting.
He expressed concern that NAPSA had no presence in the newly created provinces and districts. Mr Shamenda observed that most of the NAPSA projects across the country were taking long to be complete.
He cited the Zambia National Building Society on Cairo Road which was carried over from the MMD government as one of the projects which had taken long to finish.
He directed Labour and Social Security Deputy Minister Alfridah Kansembe to be monitoring the operations of NAPSA and ensure that all the pending projects were completed on time.
“It is a challenge which is given to management and the trustees to see that these issues which I have raised, come to fruition,” he said.
Mr Shamenda said the PF Government would not interfere in the operations of State-owned institutions but would not hesitate to intervene by monitoring operations.
And Mr Mulonga said the matter in which NAPSA was owed K2.7 billion by public sectors and Government was currently before the parliamentary committee on economic affairs, energy and labour. He said submission to parliament on the matter had already been made by various stakeholders including the ministry of finance.
Mr Mulonga said NAPSA proposed to government that in the pending pension reforms, government should revise the penalty rate from 20 percent to inflation plus 5 percent.
He said NAPSA had also recommended an establishment of an appeal board to handle grievances of members and other stakeholders and the provision for the separation of fund management from pension administration.
Mr Mulonga also revealed that the board had approved in the interim to allow renting out some houses in Kalulushi in order to begin getting returns on the investment and stimulate interest of would-be buyers.