Zambia. Investment of Pension Funds: Part 1
It is widely recognised that a pension scheme represents a long-term contract between the employer as sponsor and the members. In this arrangement, employees give up part of the current salary through pension contributions in exchange for future retirement benefits.
It is, therefore important that pension funds are properly invested in order to get good returns for the pension scheme members.
To achieve this, we need an enabling environment and appropriate institutions to ‘grow’ pension funds. Government has established the environment for fund managers to flourish by enacting the Pension Scheme Regulation Act. Any company that desires to offer fund management services from the 235 registered pension schemes, needs to be registered by the Pensions and Insurance Authority (PIA). The Government through the PIA provides the oversight role for the fund managers. The PIA through prudential supervision monitors and ensures that the registered fund managers adhere to the necessary legislation and the agreements that they have with the trustees of the pension schemes.
Read More: Zambia Daily Mail
