CABINET APPROVES, IN PRINCIPLE THE INTRODUCTION OF A BILL IN PARLIAMENT TO AMEND THE NATIONAL PENSION SCHEME ACT NO. 40 OF 1996 SO AS TO PROVIDE MEMBERS OF THE SCHEME AN OPTION TO ACCESS PART OF THE CONTRIBUTIONS BEFORE RETIREMENT.

(f) National Pension Scheme (Amendment) Bill, 2022.

Cabinet also approved, in principle, the introduction of a Bill in Parliament to amend the National Pension Scheme Act No. 40 of 1996 so as to provide members of the Scheme an option to access part of the contributions before retirement.

The New Dawn Administration has made a policy pronouncement on the need for a partial access to pension contributions by members of the National Pension Scheme through The President’s inaugural address to Parliament; the UPND Manifesto (2021-2026); and the 2022 Budget Speech, combined, as some of the policy documents that have pronounced the introduction of partial pension benefits.

However, the National Pension Scheme Act No. 40 of 1996, in its current form, does not allow for the implementation of the policy pronouncement on partial access to pension contributions by members of the National Pension Scheme. Therefore, to implement this policy pronouncement, it is necessary for the National Pension Scheme Act No. 40 of 1996 to be amended. Cabinet is convinced that this is a good policy decision as it will allow employees to start planning for their retirement early enough.

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