Zambia says public pension fund insolvent

LUSAKA – Zambia’s public pension agency is insolvent after incurring a deficit of one trillion kwacha and will be unable to pay 89 000 workers benefits, a senior official said yesterday.

Public Service Pension Fund Chief Executive Officer Thomas Phiri said the agency would be dry from January 2005. He blamed the crisis on huge debts owed by the government but gave no specific data.”We will have no money to pay pensioners as we have a deficit of one trillion kwacha.Our money is held up by the government which has been borrowing without paying back,” Phiri told Reuters in an interview.The problem was made worse by the government’s creation of a new pension authority – the National Pensions Authority (NAPSA) – which now collected contributions for newly employed civil servants and reduced the agency’s financial base, Phiri said.Zambia has in excess of 120 000 civil servants and public workers, who include defence and security staff.”We have told the government that if they do not give us the money we will have no more funds to pay pensioners,” Phiri said.- Nampa-ReutersHe blamed the crisis on huge debts owed by the government but gave no specific data.”We will have no money to pay pensioners as we have a deficit of one trillion kwacha.Our money is held up by the government which has been borrowing without paying back,” Phiri told Reuters in an interview.The problem was made worse by the government’s creation of a new pension authority – the National Pensions Authority (NAPSA) – which now collected contributions for newly employed civil servants and reduced the agency’s financial base, Phiri said.Zambia has in excess of 120 000 civil servants and public workers, who include defence and security staff.”We have told the government that if they do not give us the money we will have no more funds to pay pensioners,” Phiri said.- Nampa-Reuters