The net assets for the Zambian pension industry rose from ZMW5b in 2014 to ZMW5.7b in 2015, representing an increase of +13%.
In 2015, the average return on net assets was 19%, below the annual of inflation (21%) for the same year.
The results were included in a press release issued by the Pensions and Insurance Authority (PIA) of Zambia on August 5th 2016.
Pension contributions by members and employers increased to ZMW730 million (2014: ZMW648 million) representing a 13% increase.
The Zambian pension industry also recorded growth in membership of 9% from 102,596 in 2014 to 112,116 in 2015.
The main contributing pension schemes to the increase were:
- The Local Authority Superannuation Fund, which is a public pension scheme.
- The Saturnia Regna Pension Fund, which is a private pension scheme.
Zambia Pension Schemes
There are currently 240 registered pension schemes in Zambia. Martin Libinga, Registrar and CEO of the Zambia PIA, explained to TanzaniaInvest that the Zambian pension schemes are made of compulsory and voluntary arrangements.
The compulsory arrangements are normally with the National Pension Scheme Authority (NAPSA), to which almost all those in formal employment contribute.
The private schemes are mainly voluntary. These are either set up by employers that want to give their employees a little more because NAPSA is a basic scheme, or by agreement between the employer and the unions.