K684m Pension Crisis

Retirees urge government to clear long-standing arrears as thousands remain unpaid

By Francis Maingaila ♥️
Lusaka, Zambia24 — (6-05-2026) -- A K684 million pension crisis is unfolding as thousands of retired public service workers continue to wait for delayed benefits, prompting renewed calls for urgent government intervention.

The National Society for Public Service Pensioners, Retirees and Retrenchees of Zambia (PUSERREZA) says the prolonged delay in settling recalculated pension benefits has left many elderly beneficiaries struggling to survive.

Speaking at a press briefing, PUSERREZA Vice President Mutinta Cheelo appealed to President and government leadership to prioritise the payment of the outstanding arrears.

Cheelo said the matter stems from a court case concluded between 2003 and 2011 in favour of public service workers who were retired or retrenched between 1999 and 2008.

Following the ruling, the Public Service Pensions Fund Board undertook recalculations of the benefits and submitted its first report in 2013, with payments beginning in June 2016.

She noted that government has since been releasing funds in batches, with eight lists processed so far, but progress has been slow.

“Our main concern is the manner in which government is releasing funding to settle the outstanding balance,” Cheelo said.

She estimated the principal amount at about K360 million, adding that when the annual interest of 6 percent is applied over time, the total liability rises to approximately K684 million.

According to PUSERREZA, out of about 5,000 affected retirees, only 1,700 have been fully paid, leaving around 3,300 still awaiting their terminal benefits.

Cheelo warned that many of the affected retirees are elderly and vulnerable, stressing the urgency of the matter.

“These are human beings whose life expectancy is limited. We are appealing to government to expedite full payment before it is too late,” she said.

She added that the organisation has engaged relevant authorities, including the Ministry of Justice and State House, but no tangible progress has been made, prompting the group to raise the matter publicly.

PUSERREZA has since called for the full settlement of all outstanding arrears, arguing that partial payments are insufficient given the scale of the obligation and the number of retirees still unpaid.

The association represents more than 5,000 former public service workers across the country who were retired in the national interest and are now living in poverty while awaiting their delayed benefits.