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Frequently Asked Questions

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ABOUT PSPF

Public Service Pension Fund (PSPF) is a creation of an Act of Parliament under Cap 260 of the laws of Zambia, Act No. 35 of 1996. It is a defined benefit scheme that provides benefits to public servants and administer home ownership scheme and micro finance.

WHO ARE THE MEMBERS OF PSPF?

Membership is from the Teaching Service; Police and Correctional Service; Defence Forces; Civil Service; Judicial Service and Zambia Security and Intelligence Service. The Fund membership profile consists of active members (contributing serving members) and non-active members (pensioners and beneficiaries).

WHAT ARE THE CONTRIBUTION RATES TO THE SCHEME?

The rate of contribution to the scheme by an officer or probationer is seven and one quarter per centum (7.25%) of one's emoluments or at such rate as the President may fix by statutory order in consultation with the Board. The employer (government) makes an equal contribution of 7.25% bringing the total contribution to 14.5%.

HOW DO YOU REGISTER AS A MEMBER OF PSPF?

Members are required to fill in registration forms and have them approved by the employer. Thereafter members are required to update their status each time there is change in their work and family life.

WHAT ARE THE TYPES OF BENEFITS OFFERED BY THE FUND?

PSPF pays the following benefits to retired public servants and beneficiaries of deceased estates or officers who resign or are dismissed from employment:

1. Statutory retirement – these are benefits paid to officers who reach the mandatory retirement age as prescribed under section 33 of the Pensions Act. In calculating benefits under this section we consider the officers last annual salary multiply it by the length of service (in months) divided by age in months. The officer has the option to commute one third or two third as lump sum using an age factor prescribed in the Act.

2. National Interest-This is a type of retirement for officers who retire under section 39 of the Act; on the abolition of their post or to facilitate an improvement by which greater efficiency or economy could be attained in the running of government business. In computing the benefits, we take into consideration the officers last annual salary; length of service expressed in months and age at time of retirement.

3. Medical retirement-This is provided for officers who have ill health and benefits are paid under section 40. In computing the benefits, we take into consideration the officers last annual salary; length of service expressed in months and age at time of retirement.

4. Death benefits-These are payable to survivors of a deceased estate (spouse, children, parents, dependents and near relatives) under sections 43, 44 and 34 respectively. In computing the benefits, we take into consideration the officers last annual salary; length of service expressed in months; age at time of retirement; contributions made and interest.

5. Compensation-This is made to the estate of those officers who die on duty at five times annual basic pay under section.54 (second schedule regulation 3 (5)

WHAT IS PAYABLE TO OFFICERS THAT ARE NOT ELIGIBLE TO RECEIVE PENSION?

For officers not eligible to pension, a refund of contributions is made. This is provided for under sections 36, 37 and 38 of the Pensions Act. What is payable under these sections is the aggregate or total sum of all contributions made to PSPF with simple interest at current Central Bank deposit rate.

WHAT ARE THE LUMPSUM PAYMENT OPTIONS?

Section 53 of the Pensions Act provides for commutation of pension benefits. An officer may opt to commute either one-third or two-thirds of the officer's pension as lump-sum.

ADVANTANGES AND DISADVANTAGES OF EACH OPTIONS

1. COMMUTING ONE-THIRDS

a. Moderate lumpsum

b. Huge monthly pension which is transferable to the spouse and children aged 18 and below.

c. Less financial stress after retirement

2. COMMUTING TWO THIRDS

a. Huge lump-sum now

b. Smaller monthly pension for life

c. Financial stress after retirement

WHO IS ELIGIBLE FOR DEATH BENEFITS?

According to the Public Service Pensions (PSP) Act number 35 of 1996, death benefits are paid to Civil Servants who die while in employment through an appointed personal representative (executor or administrator). The personal representative in turn distributes the benefits to the surviving beneficiaries. The primary beneficiaries according to the Intestate Successions Act are the spouse, children, parents and dependents where applicable. Where the member survives by no primary beneficiaries mentioned above, the benefits go to the near relatives. Where there are no near relatives the death benefits are paid to the State through the Administrator General.

WHO IS ELIGIBLE FOR MONTHLY PENSION?

The Public Service Pensions (PSP) Act provides for monthly pension when a qualifying member retires or dies. A member qualifies for monthly pension after serving Government for at least 10 years and is not dismissed, discharged or resign. Monthly pension upon death of a member is payable to that member's surviving spouse(s) and children under the age of 18 years. Payment ceases upon death of a recipient. Alternatively, payment to the surviving spouse stops upon her/him remarrying. As for the children, the last monthly pension payment is made in a month prior to the 19th birthday.

HOW ARE THE PAYMENTS FROM THE FUND REMITTED TO THE MEMBERS?

All payments from PSPF are made through Bank Accounts. This, therefore requires that anyone expecting payments from the Fund should have an active Bank Account. This does not include ZANACO Xapit Account.

WHAT DOCUMENTS DO I PREPARE BEFORE RETIREMENT?

PSPF assesses and compute benefits using information and vital statistics from ministerial files. There are particular forms and documents that contain the necessary data required in the assessment and computation of the benefits which we extract from these files to ensure accuracy of the calculation.

WHO IS REQUIRED TO SUBMIT A LIFE CERTIFICATE?

A life certificate is a form submitted by a pensioner or spouse of a deceased member as proof of their existence. It is required annually or as demanded by the Fund.

The purpose for submitting life certificates includes:

1. It acts as a census to ensure that only surviving pensioners or beneficiaries continue receiving the monthly pension.

2. Updating the client's details such as phone numbers, email address, physical address, bank details etc.

3. It assists in pension management and administration; thus planning for pension increments, payroll processing expenses etc.

WHEN DO I START PREPARING FOR RETIREMENT?

Planning for retirement begins from the day one is employed. The Public Service Pensions Fund (PSPF) offers value added products namely; the Home Ownership Scheme and the Microfinance which allow contributing members to invest in real estate and other business ventures as a way of preparing for retirement.

WHAT LOANS DOES PSPF OFFER TO HELP YOU INVEST?

The Public Service Pensions Fund Board (PSPFB) offers two types of loans namely; Home Ownership and Microfinance loans to its eligible members. The Home Ownership Loan can be used to either build or purchase a house while the microfinance loan is used for other personal financial needs. The provision of loans is provided for under Section 7 (b) of the Pensions Act.

DOCUMENTATION REQUIRED FOR MORTGAGE LOAN APPLICATION

Documents to be submitted to the loan's office in respect of a house loan:

1. Introductory letter from Ministry or Department with the following Details

- That it is on headed paper.

- It indicates Employee Number

- Has the employee engagement date

- Signed by an Authorized Officer, preferably from Human Resource

- That the letter supports the employee to obtain a loan.

2. Completed Application Forms[1]

3. Certified Copy of the latest pay slip x3

4. Certified copy of NRC

5. Certified copy of confirmation in service/Attestation

6. Copy of the Marriage Certificate for joint applicants

7. Copy of the Title Deed for the house to be purchased

8. Offer Letter from the vendor and a copy of their NRC

9. Certified bank statement for the last 3 months

10. Statement for loan buy-offs (Bayport statement to be brought in by Wednesday)

For Construction Cases, in addition to documents 1 to 6, the following will also be required:

11. Applicants copy of Title Deed/Land record/Occupancy License

12. Approved building plans

13. Detailed estimate of costs, done by a competent person /Material Schedule

ENTITLEMENT:……………………………………………………………….

ENTITLEMENT:……………………………………………………………….

REPAYMENT PERIOD:………………………………………………….

INTEREST RATE: 15% P.A

DOCUMENTATION REQUIRED FOR MICROFINANCE LOAN

The Loan applicant shall submit the following documents to the responsible officer:

1. Introductory letter from Ministry or Department written on official GREEN GRZ HEADED PAPER indication applicant's residential address, employee and NRC No., job title as well as duty station.

2. Duly completed Application Form (to be provided and filled at PSPF Offices).

3. Two latest authenticated Original pay slips and two certified copies

4. Certified copy of NRC and I.D

5. Certified copy of confirmation in service/ Attestation letter/Enlistment

6. Bank Statement duly stamped and signed on all pages for three latest months

7. Marriage certificate/affidavit for women whose names have changed as a result of marriage

8. Loan Statements for loans to be paid off

ALL DOCUMENTS MUST BE CERTIFIED BY THE EMPLOYER

HOW DO I COMMUNICATE WITH PUBLIC SERVICE PENSIONS FUND?

The Physical address:

PUBLIC SERVICE PENSIONS FUND

Sapele Road, off Cairo Road

P.O. BOX 38411

LUSAKA.

Call Center Line:

+260 630020101

Email:

info@pspf.org.zm

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