THE GUEST OF HONOUR HON MINISTER OF LABOUR AND SOCIAL SECURITY MRS BRENDA
MWIKA TAMBA TAMBA (MP)
THE PERMANENT SECRETARY MR ZECHARIA LUHANGA
THE PRESIDENT OF THE ZAMBIA CONGRESS OF TRADE UNION MR BLAKE MULALA
THE PRESIDENT OF THE FEDERATION OF FREE TRADE UNION OF ZAMBIA MR MUYAYWA
MWIYALUKA KABISA
THE PRESIDENT OF THE UNITED FEDERATION OF EMPLOYERS OF ZAMBIA (UFEZ) MR
HUMPHREY MONDE
THE LABOUR COMMISSIONER MR GIVENS MUTENGWA
SENIOR GOVERNMENT OFFICIALS PRESENT
THE ILO COUNTRY DIRECTOR FOR ZAMBIA MALAWI AND MOZAMBIQUE MR
WELLINGTON CHIBEBE WHO IS ALSO SPECIAL REPRESENTATIVE TO COMESA
MEMBERS OF THE MEDIA
DISTINGUISHED GUEST
LADIES AND GENTLEMEN
I AM PLEASED TO STAND ON THIS PLATFORM TO MAKE SOME REMARKS ON BEHALF OF THE
EMPLOYERS IN ZAMBIA AT THIS TRIPARTITE CONSULTATIVE LABOUR COUNCIL WHICH ALSO
MARKS THE FIRST TCLC IN THE YEAR 2025.
I NOTE FROM THE MEETING AGENDA THAT THIS TCLC HAS BEEN CALLED TO DISCUSS, AMONG
OTHER AGENDA ITEMS, THE PENSION AND INSURANCE AUTHORITY (PIA ) BILL, AS WELL AS THE
PENSION SCHEME REGULATION BILL, WHOSE OBJECTIVE AMONG OTHERS INCLUDES;
THE REGULATION AND SUPERVISION OF OCCUPATIONAL PENSION SCHEMES, THE
REGULATION AND SUPERVISION OF NON-OCCUPATIONAL PENSION SCHEMES AND
THAT OF THE SUPERVISION OF PUBLIC PENSION SCHEMES.
GUEST OF HONOUR PENSION REFORMS THROUGH REGULATIONS IN A NUMBER OF COUNTRIES
HAS BEEN CHARACTERIZED WITH ISSUES OF ADDRESSING SOARING DEFICIT GAPS BETWEEN
PENSION FUNDING OBLIGATIONS AND REVENUES TO A LEVEL OF CONTRIBUTING TO
ECONOMIC STABILITY . PENSIONS ARE A SOURCE OF AVERTING THE OLD AGE CRISIS AS
INCOME CEASES TO FLOW WHILE SOMEONE STILL NEEDS TO LIVE EVEN AT OLD AGE.
BEST PRACTIES ON PENSION MANAGEMENT IN A NUMBER OF ECONOMIES ARE EMBARKED ON
A THREE (3) TIER MODEL WITH THE PUBLIC PENSIONS FOCUSING ON A MINIMAL POVERTY
REDUCTION ROLE, COMPLIMENTED BY A FULLY FUNDED MANDATORY DEFINED
CONTRIBUTION SAVINGS AS A SECOND TIER AND THIRD TIER OF VOLUNTARY SAVINGS.
GUEST OF HONOUR, LADIES AND GENTLEMEN, FOR A LONG TIME IN THE LAST DECADE, THIS
TCLC DISCUSSED THE SUBJECT OF PROMOTING OCCUPATIONAL PENSIONS SCHEMES AND
AGREED THAT WORKERS IN DIFFERENT SECTORS SHOULD NOT PUT THEIR EGGS IN
ONE BASKET, THE PUBLIC PENSION SCHEME NAPSA. BUT INSTEAD, AS IS THE CASE IN THE
PRIVATE SECTOR. HAVE PUBLIC SERVICE PENSIONS FUND (PSPF) AND THE LOCAL AUTHORITY
SUPERANNUATION FUND, (LASF), AS PUBLIC SECTOR OCCUPATIONAL PENSION SCHEMES,
WHILE NAPSA REMAINS AS MANDATORY PENSION SCHEME, FOR BOTH PUBLIC AND PRIVATE
SECTOR EMPLOYEES.
WE ARE GRATEFUL AS EMPLOYERS, AND WISH TO COMMEND THE NEW DAWN
GOVERNMENT, THAT RECENTLY, CABINET APPROVED THE ACTUALISATION OF BOTH THE
PUBLIC SERVICE PENSION FUND, (PSPF) AND THE LASF, TO OPERATE AS
OCCUPATIONAL PENSION SCHEMES. THIS CABINET DECISION, WILL REVIVE THE FINANCIAL
HEALTH OF THESE TWO INSTITUTIONS, AS THEY WILL BE ABLE TO RECEIVE NEW ENTRANTS
INTO THE SCHEMES.
WE HOPE THAT THE TWO PENSION SCHEMES WHO, FOR THE PAST TWO DECADES, HAVE BEEN
SURVIVING ON THEIR INVESTMENT RETURNS, WILL REVIVE AND WILL STRATEGICALLY
REPOSITION THEMSELVES TO OPERATE UNDER A DECENTRALISED GOVERNANCE,
WHERE THEIR PRESENCE SHOULD INITIALLY BE IN THE PROVINCIAL CENTRES, AND THEREFORE
IN THE DISTRICTS THROUGH OUT THE COUNTRY, SO THAT THEY CAN TAKE THEIR PENSION
SERVICES EVERYWHERE THEY HAVE THEIR CLIENTS. WE BELIEVE THAT DECENTRALISING
THEIR SERVICES WILL CREATE EASY ACCESS TO AND BY THEIR SCHEME MEMBERS WHO WORK
OUTSIDE LUSAKA, ESPECIALLY AT THE TIMES OF FILLING CLAIMS.
GUEST OF HONOUR, LADIES AND GENTLEMEN AS THIS TCLC DISCUSSES THE PIA BILL AND
PENSIONS SCHEME REGULATIONS, AS EMPLOYERS, WE CALL FOR AN EFFECTIVE PENSION
AND INSURANCE GOVERNANCE THAT INVOLVES DECISION MAKING STRUCTURES,
THAT ENSURE APPROPRIATE GOAL SETTING, INFORMATION MANAGEMENT
PROCEDURES THAT SUPPORT THE COMPLIANCE WITH PENSION REGULATIONS, AND
TRANSPARENCY IN DEALING WITH CLIENTS AND RELEVANT STAKEHOLDER.
IN ORDER TO ACHIEVE EFFICIENCY IN PENSION AND INSURANCE SERVICES IN THE
COUNTRY, TRUSTEES SHOULD BE ALLOWED THE OPPORTUNITY TO INITIATE ACTION
IN RESPONSE TO THEIR NEEDS AND PREFERENCES, BUT ADAPT SWIFTLY TO CHANGING
SITUATIONS WITH MINIMAL INTERFERENCE FROM POLICY MAKERS, WHILE
RECONCILING WITH ECONOMIC EFFICIENCY AND EQUITY TO THE CLIENTS.
THE DESIGN AND ADMINISTRATION MANAGEMENT OF PENSION AND INSURANCE
SCHEMES SHOULD CLOSELY be ATTAINED, TO OFTEN COMPETING INTERESTS OF THE
UP TAKERS OF PENSION AND INSURANCE SERVICES.
GUEST OF HONOUR, LADIES AND GENTLEMEN, AS WE DISCUSS THE PENSION SCHEME
REGULARTION BILL, WHICH IS BEFORE THIS MEETING, WE SHOULD BEAR IN MIND THE FACT
THAT, IF THE REGULATIONS ARE PRESCRIBED IN A MANNER THAT IS PUNITIVE WITH HUGE
PENALTIES, AND TO THE EXTENT THAT PROVISIONS EVEN INCLUDE ASPECTS OF
IMPRISONMENT OF EMPLOYERS FOR DELAYED REMMITANCES OF FUNDS INTO THE
OCCUPATIONAL PENSION SCHEMES, WE WILL BE DISCOURAGING EMPLOYERS TO TAKE UP THE
OCCUPATIONAL PENSION SCHEMES.
WE SHOULD BE MINDFUL THAT THERE ARE OTHER ALTERNATIVE MECHANISMS THAT AN
EMPLOYER CAN USE, TO PAY EMPLOYEES FOR END OF SERVICE BENEFITS, SUCH AS A
CONDITION THAT MAY BE NEGOTIATED FOR, BY AN EMPLOYER AND ITS SECTOR UNION OR
WHAT IS PROVIDED FOR IN THE GENERAL ORDERS NO. 48 OF 2023 ON MINIMUM WAGES AND
CONDITIONS OF EMPLOYMENT. THE SAID GENERAL ORDERS PROVIDES THAT AN EMPLOYEE
WHO HAS SERVED WITH AN EMPLOYER ON PERMANENT TERMS AND HAS ATTAINED THE AGE
OF RETIREMENT, SHALL BE ENTITLED TO A RETIREMENT BENEFIT OF ONE MONTH BASIC PAY,
FOR EACH COMPLETED YEAR OF SERVICE.
THE ORDER FURTHER PROVIDES FOR AN OPTION THAT, WHERE THE EMPLOYER HAS
ESTABLISHED A PENSION SCHEME, THE RETIREMENT BENEFITS OF AN EMPLOYEE SHALL BE
PAID IN ACCORDANCE WITH THE SCHEME.
IN VIEW OF THIS PROVISION GUEST OF HONOUR , LADIES AND GENTLEMEN, PROVISIONS IN
THE REGULATION SUCH AS WHAT IS CURRENTLY PROVIDED FOR IN THE DRAFT REGULATION
IN SECTION 27 ON REMITTANCES OF PENSION CONTRIBUTION, WHICH REQUIRES THAT AN
EMPLOYER REMITS PENSION CONTRIBUTIONS TO A PRIVATE PENSION SCHEME, WITHIN 30
DAYS AFTER THE END OF THE MONTH, FAILURE TO WHICH AN OFFENCE WILL BE COMMITTED
AND SUCH AN EMPLOYER WILL BE LIABLE TO PAY TO THE PENSION SCHEME INTEREST ON
CONTRIBUTION AT THE PREVAILING BANK OF ZAMBIA POLICY RATE, FOR EACH MONTH THAT
THE CONTRIBUTIONS ARE NOT PAID OR PART THERE OF AFTER THE DUE DATE.
AS THOUGH THIS IS NOT ENOUGH, THE PENALT IS EXTENDED TO MAKING THIS EMPLOYERS PAY
A FINE OF ONE THOUSAND PENALRT UNITS FOR EACH DAY THE REMITTANCE OF THE
CONTRIBUTIONS ARE NOT PAID TO THE PENSIONS AND INSURANCE AUTHORITY.
GUEST OF HONOUR, LADIES AND GENTLEMENT ZFE FINDS SUCH PROVISIONS AS
DISCOURAGING TO EMPLOYERS TO TAKE UP OCCUPATIONAL PENSION SCHEMES. EMPLOYERS
WILL INSTEAD GO FOR ALTERNATIVES. WE HOPE THAT IN OUR DISCUSSIONS OF THE BILL WE
WILL BE MINDFUL OF THIS ASPECT AND AGREE ON TEXTS THAT SHOULD NOT DETER AN
INCREASE OF EMPLOYERS GETTING ON PENSION SCHEMES.
GUEST OF HONOUR, LADIES AND GENTLEMEN LET ME DIGRESS A BIT FROM ISSUES ON THE
AGENDA OF THIS MEETING TO ONOTHER ISSUE THAT MAY BE OF INTEREST TO THE INDUSTRY
AND THE COUNTRY AT LARGE. THIS IS ABOUT THE EFFECT OF POLICY MEASURES THAT THE
GOVERNMENT OF THE UNITED STATES OF AMERICA IS UNDERTAKING. WE IN ZFE FEEL THAT IT
IS NOT JUST THE BRINGING TO AN END OR REDUCING THE USAID / PEPFAR FUNDING THAT
SHOULD BE A CONCERN BUT ALSO THE PENDING POLICY DIRECTION TO IMPOSE MATCHING
TARIFFS ON EVERY COUNTRY THAT IMPOSES TARIFFS ON THE US BY APRIL THIS YEAR. THIS
MEASURE WILL AFFECT THE ZAMBIAN PRODUCTS. WE FEEL THAT UNCERTAINITY IN AN
ALREADY STRESSED ECONOMY WILL MAKE THINGS WORSE. WE WISH THAT OUR GOVERNMENT
COULD MAKE A STATEMENT AND BRING OUT FACTS ON THIS MATTER.
GUEST OF HONOUR LADIES AND GENTLEMEN LET ME TAKE THE LAST MINUTE OF DELIVERING
MY SPEECH TO THANK YOU FOR YOUR TIME TO LISTEN TO MY SPEECH.
AS EMPLOYERS WE LOOK FORWARD TO FRUITFUL DELIBERATIONS IN THIS MEETING.
THANK YOU