President Hichilema says K10.6 billion paid out to NAPSA members under partial withdrawal scheme

President Hakainde Hichilema says a total of K10.6 billion has been paid out to 518,183 members of the National Pension Scheme Authority following the government’s introduction of the 20 percent partial pension withdrawal policy.

Addressing the nation on the application of National Values and Principles in the National Assembly of Zambia on Friday, the President said the figure — recorded as of January this year — reflected the impact of one of the government’s most significant social protection reforms.

“As of January, this year, 518,183 members of the National Pension Scheme Authority had accessed their 20 percent partial withdrawal. In monetary terms this is amounting to K10.6 billion has gone to the owners long before they retire,”he said.

Hichilema said the reform was crafted to help families become more self-reliant rather than wait until old age to access their contributions.

He stressed that accessing the pre-retirement benefit was voluntary, but that the high uptake demonstrated the policy’s positive impact.

“This is optional by the way, it’s not mandatory, but you can see the uptake that it’s working for families. This is tremendous, and it is life changing for our people,” he said.

Responding to critics who had warned the reform would weaken the pension fund, Hichilema insisted the policy had instead stimulated economic activity.

“Some said it will bankrupt NAPSA — no, no, no; you need to understand money matters, you cannot bankrupt an institution. Some of the times money sits there in a latent form, it’s better to give it to the owners and the owners will do something of economic activity and create jobs and add to the growth of the economy,” he said.

The President also reflected on the personal significance of the reform, recalling his years in opposition.

“In my opposition days I watched this issue and said there’s a problem here. When we got the opportunity to serve the people we went for it and it’s now bearing fruits,” he said.

Beyond the pension changes, Hichilema outlined a broader package of labour-sector reforms undertaken by the United Party for National Development government to promote dignity, social justice and non-discrimination in the workplace.

These include a more transparent public-sector recruitment system, extending pension coverage to the informal sector — which accounts for more than 70 percent of the workforce — an increase in the minimum wage, and strengthened occupational safety and health legislation under the government’s decent work agenda.

Hichilema said the combined reforms had improved income security, enhanced financial resilience and expanded social protection for citizens across Zambia.

“They (beneficiaries) are completing their houses, they are putting water and sanitation, they are buying farming equipment to be productive,” he said.

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