NAPSA Disburses K9.1 Million in Interest-Free Advances to 565 Pensioners

 

LUSAKA — The National Pension Scheme Authority (NAPSA) has paid more than K9.1 million in interest-free pension advances to 565 pensioners during the first three days of operating its new advance-payment facility.

NAPSA says K9,137,772.92 was disbursed between August 8 and August 11, 2026, as part of recently introduced pension reforms intended to improve retirees’ access to financial support.

The highest advance paid during the period was K17,454.37, while the lowest was K2,000. NAPSA reported that the average payment stood at K16,178.37.

About 34,000 pensioners were eligible to apply for the facility as of August 1, meaning the initial 565 beneficiaries represent less than two percent of the eligible population.

The advances are provided without interest, allowing qualifying pensioners to access part of their pension income to meet immediate financial obligations without taking expensive commercial loans.

NAPSA Director General Muyangwa Muyangwa said the early uptake demonstrated demand for the facility and reflected the effect of the new pension provisions on retirees.

“We reaffirm our commitment to implementing all new benefits and products for the benefit of our members,” Muyangwa said. “The strong uptake of this facility demonstrates the positive impact of the reforms on the lives of pensioners.”

He commended President Hakainde Hichilema and the NAPSA Board of Trustees for supporting the reforms and overseeing their implementation.

The advance-payment facility forms part of broader changes to Zambia’s pension system. Other measures announced by NAPSA include enhanced minimum pensions, a 30 percent retirement lump-sum option, revised accrual and income-replacement rates and new supplementary savings and pension products.

According to the Authority, improvements to the minimum pension have so far affected 17,806 pensioners.

NAPSA says the reforms are designed to strengthen retirement security and allow pensioners greater flexibility in managing their financial needs.

The rapid disbursement will, however, place attention on how efficiently NAPSA processes applications as more eligible pensioners seek access to the facility. Questions of accessibility will also be important for elderly beneficiaries in rural areas or those with limited access to digital services.

NAPSA is a statutory institution responsible for collecting pension contributions, investing the funds and paying benefits to qualifying members. It says it will continue introducing social-security products aimed at improving the welfare and dignity of pensioners.