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Finance
change money into many more currencies as well.
The sector is governed by the Banking and Finan-
cial Services (Bureau de Change) Regulations,
which were amended in 2006.
Pension funds
Pension scheme management has become more
challenging in view of the recent global financial
crisis, with the decline in stock market valuations
having negatively affected the provision of pensions
worldwide. Pension funds in Zambia have not been
spared throughout the crisis, as they hold more than
70 percent of the total market capitalization on the
Lusaka Stock Exchange.
There are several types of pensions on offer in Zam-
bia – personal pensions, group occupational pen-
sions and public pensions. Unlike the National Pen-
sion Scheme, which is compulsory and is designed
to provide social security in the form of a basic pen-
sion, occupational group pensions are supplementa-
ry schemes sponsored by private sector employers
and employees.
The National Pension Scheme Authority (NAPSA)
runs the National Pension Scheme. Other major
pension funds are the Public Sector Pension Fund
(PSPF) and Local Authorities Superannuation Fund
(LASF). The Association of Pension Fund Managers
(APFM) represents the combined interests of these
pension funds, as well as some smaller ones.
The cumulative number of NAPSA members reg-
istered since its inception in 2000 is slightly above
900 000, with about 600 000 active members and a
further 18 000 employers registered.
Under the Financial Sector Development Plan
(FSDP), pension scheme legislation is being up-
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dated and harmonized. The Pension Scheme Regu-
lation Act of 1996, which provided for the adminis-
tration and regulation of all pension schemes with
the exception of the National Pension Scheme (gov-
erned by the National Pension Scheme Act), has
been replaced by the Pension Scheme Regulation
(Amendment) Act, which came into effect in 2006.
Draft legislation to harmonize the industry was sub-
mitted to the Ministry of Finance and National Plan-
ning in October 2009 for consideration.
The FSDP also recommends enhancing tax incen-
tives for pension funds; effecting consumer educa-
tion programmes; conducting a study on viability of
personal pension plans; training local actuaries and
establishing investment guidelines. Measures to
build capacity at the Pensions and Insurance Author-
ity (PIA) have been put in place, with the programme
having included setting up systems and manuals as
well as seminar participation.
The PIA has been involved in the formulation of the
National Social Security Bill under the
Ministry of Labour and Social Security, which seeks
to bring NAPSA under the supervision of the Regis-
trar of Pensions and Insurance at PIA. Proposals to
amend the provision in the Pension Scheme Regu-
lation Act, which exempts NAPSA from supervision,
were submitted to government and were under con-
sideration in 2009. The government has since issued
a letter of intent for NAPSA to be supervised by PIA.