Over 7, 000 retirees access NAPSA interest-free advance facility

Over 7,000 retirees have so far accessed more than K90 million under the National Pension Scheme Authority (NAPSA) interest-free advance facility. NAPSA Chief Executive Officer, Muyangwa Muyangwa, revealed that out of 34,000 retirees on the NAPSA payroll, over 7,000 have…

Over 7,000 retirees have so far accessed more than K90 million under the National Pension Scheme Authority (NAPSA) interest-free advance facility.

NAPSA Chief Executive Officer, Muyangwa Muyangwa, revealed that out of 34,000 retirees on the NAPSA payroll, over 7,000 have already claimed the advance, with the demand increasing daily.

Speaking at a media workshop in Siavonga, Mr Muyangwa explained that most retirees had challenges accessing the facility initially because it is claimed online through the eNAPSA portal, but the Authority has since provided support.

“You don’t need to come to NAPSA, you just need to log into eNAPSA and you will find it shows that you can push a button and claim your advance,” he explained.

Mr Muyangwa said the interest-free advance has been introduced to address long standing complaints that monthly pension payouts are insufficient to meet retiree’s needs.

He disclosed that every NAPSA member has a funeral grant, which currently stands at about K22,000 and is adjusted upwards every year and  the grant is however, only paid after death.

“So we said instead of keeping that money for post-life, can people start accessing that money, so that this the advance they are getting. They are actually getting it against the funeral grant, but there is no interest,” he explained.

He said retirees are entitled to 75 percent of the funeral grant as an advance, which is recovered through a small monthly deduction from their pension, ensuring they continue to receive a monthly income.

“It is an easier way of providing interest free money instead of them going to do Kaloba, we don’t allow them to borrow the whole amount so that they can still have their monthly cheque,” he said.

Mr Muyangwa said once the advance is fully recovered after 18 months or when the funeral grant is adjusted upwards in the new year, retirees can access it again.

He has urged all retirees to take advantage of the facility.

“Whatever we can do to make sure there is dignity in retirement, we shall work on it as NAPSA,” he said.

Meanwhile, Mr Muyangwa disclosed that NAPSA has so far paid out over K11 billion to more than 600,000 members under the 20 percent pre-retirement partial withdrawal benefit.

Mr Muyangwa attributed delays and rejections in processing some claims to accounts that are not clean, citing missing contributions, double contributions and cases of members sharing NRCs.

He said NAPSA has set up a unit of 165 staff to clean members’ accounts from the year 2000 to 2025 so that accounts operate like bank accounts.

“We want that when you go to the ATM it pays. There is nothing like we go first and check which company you worked for,” he said.

He also added that the team is actively engaging members and employers to obtain missing returns so that their accounts can be updated.