New Public Service Pensions Act Enacted

Public service workers are set to benefit from improved pension security, more flexible retirement options, and wider access to housing loans following the enactment of the Public Service Pensions Act No. 73 of 2026.

Public Service Pensions Fund Director General, Francis Nyirenda, said the new legislation repeals the 1996 Act and introduces a modern pension framework aimed at strengthening governance and ensuring the long-term sustainability of public service pensions.

He said that “the contribution rate will be 6.5% of an employee’s gross salary shared equally between employee and employer, that is the government at 3.25% each.”

Speaking during a media briefing in Lusaka, Mr Nyirenda explained that the new law establishes two pension schemes: the Public Service Pension Scheme and the newly introduced Occupational Pension Scheme (OPS).

He added that the reforms provide greater flexibility by allowing optional retirement from the age of 55, normal retirement at 60, and deferred retirement up to the age of 65.