New PSP Law introduced



Reforms to modernise benefits, expand coverage and improve portability

By Francis Maingaila ♥️

Lusaka, Zambia 24 -- (24-06-2026) — The Government has introduced a new pension law aimed at improving retirement benefits and strengthening the management of pensions for public service workers.

Public Service Pensions Fund (PSPF) Director General Francis Pindani Nyirenda announced the development in Lusaka on Thursday during a media briefing on the Public Service Pensions Act No. 73 of 2026.

Nyirenda said the new law, signed by President Hakainde Hichilema on June 4, replaces the 1996 legislation and introduces a modern framework designed to improve governance, fairness and the long-term sustainability of pensions.

He said the reforms are also intended to extend coverage to workers who were excluded from the pension system after 2000 and to ensure equal treatment across the public service.

Under the Act, PSPF will now manage two schemes — the existing Public Service Pensions Scheme and a new Occupational Pension Scheme for eligible workers not covered under other arrangements.

Nyirenda said both employees and Government will contribute 3.25 percent of salary each, bringing the total contribution rate to 6.5 percent.

He added that the new system gives members flexibility to retire at 55, 60 or 65 years, depending on eligibility and personal choice.

Workers with at least 15 years of service will receive a 40 percent lump sum in addition to a monthly pension.

The reforms also introduce pension portability, allowing employees to transfer benefits when moving between jobs, while also expanding access to financial services such as housing and microfinance loans.

Nyirenda said the system will be linked with the National Pension Scheme Authority (NAPSA) to create a two-tier structure, where NAPSA provides a basic pension and PSPF adds a supplementary pension. The combined system is expected to deliver about 65 percent income replacement after retirement.

He further assured current pensioners that their benefits remain secure and protected under the Constitution, and will not be affected by the new law.

PSPF has since urged continued media support in sensitising the public on the reforms nationwide.

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