Members Booklet Buyantanshi

Pension Trust Fund

Secure Your Future

Secure Your Future

1
 Fund administered by
Buyantanshi Aon Zambia Pension Fund Administrators Limited

Pension Trust Fund

Secure Your Future

TABLE OF CONTENTS
Special terms used in this booklet 4

Information about the Fund 9

Management of the Fund 14

Joining the Fund 16

Contributions to the Scheme 18

Investment of funds 20
Buyantanshi
Pension Benefits offered by the Scheme 24
Pension Trust Fund
Retirement Pension Benefits 26
Secure Your Future
Early Retirement Benefits due to Ill Health 29

Pension Benefits on your Death 28

Withdrawing from the Fund 31

How Pension Benefits are paid 33

Some other information 34

3
 1. Special terms used in this booklet
1.1. Actuary
This is an adviser on financial questions involving probabilities relating
to mortality and other contingences of the Fund. The Actuary is
appointed by the Trustees and advises them in accordance with the
Trust Deed and Rules of the Fund.

1.2. Accumulated Credit

The total of your contributions and your employer’s contributions
during a given time enhanced by interest allocated by the Trustees
where appropriate.

1.3. Administrator
This is an organisation appointed in terms of the Trust Deed of the Fund
to maintain the records of the Fund and to carry out the administrative
Buyantanshi functions relating to the Fund on a day to day basis.

Pension Trust Fund 1.4. Annuity

A series of payments, which may be subject to increases, made at stated
Secure Your Future intervals until a particular event occurs. This event is most commonly
the end of a specified period or the death of the person receiving the
annuity.

1.5. Approved Fund

A Fund registered by the Pensions and Insurance Authority (PIA)
in terms of the Pension Scheme Regulations Act and approved as a
Pension Fund or Retirement Pension Fund by the Zambia Revenue
Authority (ZRA).

1.6. Beneficiary
Any person other than the member entitled to receive a benefit in
terms of the Trust Deed and Rules of the Buyantanshi Pension Trust
Fund.

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1.7. Contribution Year
This is the period between 1 January and 31 December each year in
which your employer sends contributions on a monthly basis to the
Fund.

1.8. Dependant
1.8.1. A person in respect of a member whom you as a member is
legally liable for maintenance or;
1.8.2. A person in respect of whom you as a member is not legally
liable for maintenance, but such a person:
1.8.2.1. Was, in the opinion of the Trustees, on the death of
the member, in fact dependent on the member for
maintenance,
1.8.2.2. Is the spouse of the member, including a party to a
customary marriage.
1.8.2.3. Is a child of the member born in or out of marriage,
including a posthumous child and a legally adopted Buyantanshi
child.
1.8.3. A person, in respect of whom the member would have Pension Trust Fund
become legally liable for maintenance, had the member not
died.
Secure Your Future
1.9. Eligible Employee
An employee who has been employed on the permanent staff of the
Participating Employer and who satisfies the eligibility requirements
set out in the Special Rules.

1.10. Employer’s accumulated contributions

The net accumulated retirement contributions made by your
employer on your behalf as specified in the Special Rules plus Fund
Interest at any particular date.

1.11. Fund
It shall mean the Buyantanshi Pension Trust Fund for the purpose of
this booklet.

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 1.12. Fund Return
The net profit or loss, during a particular period, made by the Fund on
investments, as determined by the Trustees having regard to, but not
by way of limitation, interest, dividends and other investment income,
profits and losses on the disposal or realisation of investments, unrealized
gains, appreciation or depreciation in the value of the investments, and
expenses incurred by the Fund.

1.12.1. Realised Fund Return

These are returns that are not notional and can be
distributed to members as Fund Interest.

1.12.2. Unrealised Return

These are returns that are notional and can be reversed
by circumstances beyond the control of the Trustees. The
Trustees having considered all factors may distribute the
Unrealised Returns.
Buyantanshi
1.13. Fund Interest
Pension Trust Fund The return on assets, determined by the Trustees to be added to
the member’s Accumulated Contributions and the Employer’s
Accumulated Contributions.
Secure Your Future
1.14. Fund Interim Interest
The Trustees will determine an interim interest rate, from time to
time, based on the expected financial performance of the assets
of the Fund to be used for the calculation of benefits falling due to
members of the Participating Employer before the next rate of Fund
Interest is determined.

1.15. Fund Salary

The basic monthly wage or salary of a member at any time, including
any other amounts determined by the Participating Employer from
time to time to be part of Fund Salary as defined in the Special Rules
and advised to the Administrator.

1.16. Fund Service

Such period in respect of a member, calculated in years and months,
of continuous service whilst a member of the Fund.

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1.17. Fund Rules
The Rules of the Buyantanshi Pension Trust Fund applicable to all
Participating Employers and such amendments as may be, at any
time, in force.

1.18. Member
An Eligible Employee who, having been admitted to membership of
the Fund in terms of the Trust Deed and Fund Rules has not ceased to
be a member in terms of the Trust Deed and Fund Rules, membership
having a corresponding meaning.

1.19. Member’s Accumulated Contributions

This is the accumulated contributions made by the member, as
specified in the Special Rules, plus Fund Interest.

1.20. Normal Retirement Age

The Normal Retirement Age is 55 years.
Buyantanshi
1.21. Normal Retirement Date Pension Trust Fund
The last day of the month in which a member reaches the Normal
Retirement Age.
Secure Your Future
1.22. Participation Date
The date on which a Participating Employer is admitted to participate
in the Fund and specified in the Special Rules.

1.23. Participating Employer

An employer, as defined in the Special Rules, which participates
in the Fund by arrangement and consent of the Trustees and the
Administrator. In relation to any particular employee or member,
the Participating Employer will be the employer employing or last
employing the employee or member.

1.24. Portable Benefits

The total of the retirement contributions paid by the member and
the member’s employer on the leaving member’s account, plus
interest during his participation in the Fund.

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 1.25. Pension Executive Committee (PEC)
This is a committee set up at each Participating Employer’s work
place as a link between the Trustees, Participating Employer and the
employees of the Participating Employer. The PEC comprise 50%
members appointed by the Participating Employer and the other
50% appointed by the Employees of the Participating Employer. The
PEC will comprise a minimum of two (2) and a muximum od four (4)
members.

1.26. Service
Employment on the permanent staff of the Participating Employer.

1.27. Selected Investment Portfolio

The investment portfolio(s) made available by the Trustees to the
Participating Employer, as specified in the Special Rules and/or
Investment Policy Document, for the investment of the retirement
funding contributions.
Buyantanshi
The Trustees are not responsible for the interest, yield, appreciation or
Pension Trust Fund depreciation in the value of the assets underlying the portfolios.

1.28. Special Rules

Secure Your Future These are the Rules applicable to each Participating Employer.

1.29. Trust Deed

These are clauses of the Buyantanshi Pension Trust Fund applicable
to all Participating Employers.

1.30. Trustees
Persons appointed by the Sponsor of Buyantanshi Pension Trust Fund
in consultation with other Participating Employers and the members
to handle the operations of the Fund.

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2. Information about the Fund
2.1. What is the idea behind Buyantanshi?
Some employers have set up their own retirement pension schemes to
help their employees look forward to a better retirement. However, a vast
majority of employers have not put in place retirement plans or saving
schemes for their employees due to the cost and legal complexities
involved in setting up their own schemes. Other employers are unable
to set up their own schemes because they are constrained in terms
of time to manage a pension scheme. Buyantanshi Pension Trust Fund
being a multi-employer fund was designed and set up by Aon Zambia
Pension Fund Administrators Limited to address the needs of employers
who are not in a position to set up their own pension schemes.

2.2. What is the objective of Buyantanshi?

The objective of the Fund is to provide benefits for employees of the
Participating Employers on their retirement on account of their age or Buyantanshi
ill health, or termination of service or, on the death of such employees,
for their dependants and nominees. Pension Trust Fund
2.3. Why should my retirement benefits be provided Secure Your Future
by Buyantanshi and not my employer?
The Fund is a separate legal entity from any of the Participating
Employers and in its own name is capable in law of suing and being
sued. The contributions that have been sent to the Fund by the
Participating Employers on behalf of the employees cannot be taken
back to the Participating Employers. This protects the members both
financially and legally in such a way that if any of the Participating
Employers was liquidated, members’ funds will be safe and available to
the members. The Fund is also capable, in its own name, of acquiring,
holding and alienating property, movable and immovable in a tax
efficient way and in most cases at no tax or less tax as an approved
Fund. This helps build members’ funds as opposed to the Participating
Employer holding the funds as they will not have the tax exemptions an
approved fund enjoys nor investment income added to the funds.

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 2.4. What is the status of Buyantanshi?
The status of the Fund is that it is an audited Fund in terms of the
Pension Scheme Regulations Act of 1996. The Trustees have appointed
Aon Zambia to be Fund Administrators responsible for the day to day
management of the Fund with four Investment Managers from whom
participating employers can chose from.

Buyantanshi
Pension Trust Fund

Secure Your Future

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2.5. Who is Aon?
Aon Zambia Pension Fund Administrators Limited (Aon) is the Fund
Administrator of the Buyantanshi Pension Trust Fund. Aon Zambia is part
of the Aon Corporation global family. Aon Corporation employs more
than 59 000 people in 500 offices distributed across 120 countries. It
is one of the largest global employee benefits company. Aon Zambia
designed, set up and is the administrator of the Buyantanshi Pension
Trust Fund.

Buyantanshi
Pension Trust Fund

Secure Your Future

Aon owned of f ices

Aon representation

Able to be serviced by other Aon Correspondent

(where required)

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 2.6. Aon in Africa
A regional committee based in South Africa governs Aon Sub
Sahara Africa to which Zambia belongs. Aon in Africa works as one
united company to give quality service to its clients. Aon offices/
correspondents in Africa are as follows:

Buyantanshi
Pension Trust Fund

Secure Your Future

Key Facts
1. Aon has the most extensive African network when compared to any other employee
benefits consultancy firm.
2. Aon is represented in 28 principal countries and expanding.
3. Aon is the dominant employee benefits consultant in most countries it operates in.
4. Aon has long established representation (over 50 years in some countries)

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3. A look at the Fund
3.1. How does the Fund work?
In simple terms the Fund is an agreement between the Trustees and
the Participating Employers to be setting money aside for employees’
retirement. Employees in most cases are also required to contribute
towards their retirement. As the funds put together grow bigger, the
whole process becomes complicated.

Buyantanshi
Pension Trust Fund

Secure Your Future

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 3.2. What happens with the contributions I make to the
Fund?
Every month you contribute a percentage of your pensionable salary
into the Fund over the period until retirement (or until you leave the
Fund if earlier), your contributions, along with contributions paid by your
Employer on your behalf, are credited to your Member Account. Your
account will be invested by the Trustees and grow broadly in line with net
returns achieved each year on the investments

Your Your
Investment
Contributions & + Returns = Accumulated
Employer’s Credit

3.3. What happens at Retirement

Buyantanshi At retirement the value of your Member Account will be used to purchase
you monthly pension (annuity).
Pension Trust Fund
Your
Cash Buy Monthly
Accumulated - Lump Sum
= Pension
Secure Your Future Credit

3.4. How much will I be paid at retirement?

The amount of your benefits at retirement will depend upon four basic
factors:

1. The contributions you make to the Fund as specified in your

Employer’s Special Rules.
2. The contributions that your Employer makes on your behalf to the
Fund as specified in your Employer’s Special Rules.
3. The additional voluntary contributions that you make to the Fund.
4. The investment returns credited to your account by the Trustees.

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4. Management of the Fund
4.1. Who is responsible for the management of the
Fund?
The Trustees are responsible by law for the management of the Fund.
The Trustees manage the Fund in the best interest of the members
and Participating Employers.

4.2. Who appoints/elects the Trustees?

The law requires that 50% of the Trustees be appointed by the employer
while the other 50% of the Trustees be elected by the Members of the
Fund.

4.3. With more than two employers in the Fund, how

are the employer Trustees appointed?
At the end of the tenure of office of each employer Trustee, the Fund Buyantanshi
Secretary requests managements of all participating employers to
send curriculum vitaes of people in their respective managements Pension Trust Fund
they think would be suitable to be Trustees. The curriculum vitaes are
then circulated to all the managements of Participating Employers to
indicate which person of all the curriculum vitaes received they would Secure Your Future
prefer to be Trustee.

4.4. With members of the Fund being from different

employers, how are the employee Trustees
elected?
At the end of the tenure of office of each employee Trustee, the Fund
Secretary requests the Pension Executive Committees (PECs) of all
Participating Employers to send curriculum vitaes of employees in
their respective companies of people that have interest in becoming
Trustees of the Fund. The curriculum vitaes are then circulated to all
PECs to allow the employees who are members of the Fund to vote
and elect a Trustee of their choice.

15
 4.5. How long do the Trustees hold office?
The Trustees hold office for three years from the date they are appointed
or elected and can be available for reappointment/re-election.

4.6. Am I also eligible to stand for elections for

Trusteeship?
Yes, you are eligible, any Member of the Fund can offer his candidacy
to be elected as a Member Trustee.

4.7. What qualifications do I need to be a Trustee?

The law does not require any specific qualification for you to become a
Trustee. However, managing a Pension Fund requires some good level
of education in order to add value to the process.

4.8. What do the employer and member Trustees

discuss in their meetings?
Buyantanshi All Trustees on the Board represent members and make decisions
objectively in the interest of the Members of the Fund.
Pension Trust Fund
4.9. How do the Trustees manage to perform all the
Secure Your Future functions in the Fund?
The Trustees may delegate any of their functions or any business related
to the Fund not required by law to be exercised by them personally to
any consultancy firm, persons or experts as they think fit.

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5. Joining the Fund
5.1. Who must join the Fund?
Any permanent full time Employee of any Participating Employer who is
below 18 but below 55 years old. However, the Special Rules that apply
to your Employer may have additional eligibility conditions.

5.2. Do I have to join the Fund?

Yes you have to, each person who joins the service of a Participating
Employer on or after the Participation Date and who becomes an eligible
employee automatically becomes a member of the Fund from the first
day of the month coinciding with or if not coinciding with, the first day
of the next month following the date of becoming an eligible employee.

5.3. What if I am currently ineligible to join the Fund?

If you are currently under 18 years of age, you can only join on the first day
of the month following the date you first satisfy the eligibility conditions
for joining the Scheme. Buyantanshi
In any cases of doubt, your Employer will decide whether or not you are Pension Trust Fund
eligible to join the Fund.

5.4. Can I withdraw my membership of the Fund while Secure Your Future
still an employee?
No, a member is not allowed to withdraw from membership of the Fund
while he remains in the service of the Participating Employer and fulfils
all the eligibility conditions.

5.5. What happens if I leave and then re-join my

Employer?
For purposes of the Fund, you will be treated as a new participating
member when you re-join your Employer and should therefore satisfy all
the eligibility conditions of joining the Fund.

5.6. What documents do I have to complete when

joining the Fund?
You need to complete a Member Details Form and provide a copy of your
birth certificate or National Registration Card (NRC). Copies of the Member
Details Form can be obtained from your Human Resources Department.
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 6. Contributions to the Scheme
6.1. What amount does my employer make towards
my retirement benefits when I join the Fund?
Your Employer makes monthly contributions to the Fund towards your
retirement as specified in the Special Rules.

6.2. Who determines the amount I contribute to the

Fund?
The amount you contribute to the Fund or the contribution rate is
determined by your Employer. The rate may differ from participating
Employer to participating Employer.

6.3. Can I pay additional contributions into the Fund?

Yes, if you choose to do so, you may make, with your Employer’s consent
Buyantanshi additional voluntary contributions to the Fund, which shall be recorded
as such provided that the additional voluntary contribution does not
Pension Trust Fund exceed 15% of your Fund Salary.

6.4. What about the money I contribute to the National

Secure Your Future
Pension Scheme (NPS)?
Any monies contributed to NAPS or any government scheme by yourself
or by your employer on your behalf will not form part of the benefits
under the Fund. Any benefits paid by NPS will be in addition to those
paid by the Fund.

6.5. What happens if, due to sickness or some other

reason (acceptable under my conditions of service), I
am absent from work for a lengthy period?
If your Fund Salary is not suspended, contributions will continue to be
paid during your absence. If your Fund Salary is suspended, contributions
will not be paid and no contributions will be added to your balance
under the Fund during this period of your absence. The period will not
be counted as a Pensionable Service in terms of contribution to the
Scheme, but the periods before and after the break will be treated as
continuous.
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6.6. Can I make contributions after leaving my
employer or after 55 years of age?
No, you can only make contributions whilst you remain in the
employment of your Employer and are a participating Member of the
Fund. Contributions will cease when you leave your Employer or when
you attain the Normal Retirement Age of 55 years.

Buyantanshi
Pension Trust Fund

Secure Your Future

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 7. Investment of funds
7.1. What is the investment objective of the Fund?
In general, the investment objective of the Fund is to produce a long-
term return, which maximises growth, whilst ensuring income generation
and capital sufficient to meet benefit payments as they fall due. For this
purpose the Trustees have enlisted four Investment Managers to manage
the Fund to ensure optimum returns in line with this objective.

7.2. How are the funds invested?

Retirement plans exist to preserve and add value to members’
contributions. In order to achieve this, pension schemes must be
designed in such a way so as to meet all good corporate governance
principles.

Buyantanshi is the first multi-employer fund in Zambia to separate the

Buyantanshi administration function from the investment function of the Fund. The
two functions are done by different companies which are not in any way
Pension Trust Fund associated to each other through shareholding or having common directors.

7.3. Who chooses the Investment Manager to invest my

Secure Your Future
contributions?
Your Employer as a Participating Employer of the Fund chooses its
preferred Investment Manager from the four that the Trustees have
enlisted. The chosen Investment Manager will be entrusted to invest
your contributions, Employer’s contribution and your share of the total
fund to best suit investment needs and preference of what retirement
benefits your Employer is targeting for you. Information about all the
Investment Managers, their past performance and their associated risk
profiles are provided to the PECs and the Participating Employers every
year.

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7.4. Is there need to have more than one Investment
Manager in the Fund?
Yes there is need to have this arrangement. It is an arrangement that has
worked well in other contries and is normal in developed contries. Some
of the advantages of this arrangement are;

i. Comparison of results
Trustees and Participating Employers can compare performance
of the various Investment Managers in the Fund. This helps
Trustees and Participating Employers to make decisions to the
benefit of you as Members.

ii. Allows innovation

The existence of more than one Investment Manager in the
Fund leads to healthy competition which leads to innovation.
The Investment Managers innovations ultimately benefit the
Members.
Buyantanshi
iii. Fees are competitive
The investment fees are competitive as Participating Employers Pension Trust Fund
can compare the various Investment Managers’ fees in the Fund
and choose the fee that suites them.
Secure Your Future
iv. Take advantage of big funds
The Trustees of Buyantanshi have deliberately enlisted four
Investment Managers registered in Zambia so that your Employer
or PEC has an opportunity of choosing an Investment Manager
of their choice that while tapping into the economies of scale
within Buyantanshi can also tap into the economies of scale of
the funds managed by the respective Investment Managers.

v. Switching between Investment Managers is easy

Depending on the performance of the Investment Manager your
Employer has picked in a particular year, there are no legal or cost
implications should your Employer decide to switch to another
Investment Manager the following year if the current
Investment Manager is not performing according to the desire of
your Employer.

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 7.5. How do the Trustees achieve the Fund investment
object?
Each Investment Manager has come up with an investment strategy
that they believe will help them achieve the Trustees’ objective. The
Investment Managers invest in various assets or instruments that achieve
the best return for the Fund, but in investing the funds, the Trustees want
to ensure that they balance between risk and returns on each investment.

7.6. What assets or instruments does the Fund invest in?

The Fund through the various Investment Managers can invest among
others in the following assets or instruments;

(1) Shares in companies

(2) Government Bonds
(3) Treasury Bills
(4) Commercial Paper
Buyantanshi (5) Property/Building

Pension Trust Fund (7) Money Markets

(7) Unit Trusts
(8) Collective Income Schemes
Secure Your Future (9) Property Funds

7.7. Will the contributions paid into the Fund earn interest?
Yes, the contribution will earn interest once invested. The Trustees will
determine the interest rate to be credited to Members’ Accumulated
Credit (and any additional voluntary contributions paid) based on the
investment returns that have been earned by the respective Investment
Managers.

7.8. Does it mean all Participating Employers’ Members

will be given the same interest rate?
No, interest is given depending on the performance of the Investment
Manager that your Employer or PEC has chosen for that particular year.

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7.9. Will my accumulated credit grow faster if the
investment performance is good?
Yes, when the assets being managed by your Investment Manager have
performed well, the Trustees may be able to declare a higher bonus or
dividend, which will be credited to your accumulated credit at the end of
the contribution year.

7.10. Who pays the expenses of running the Fund?

Expenses of the Fund, such as Investment Management, Administration
and Audit fees are met out of the income earned on the Fund’s
investments, before the Trustees declare any Final (bonus) dividend.

Buyantanshi
Pension Trust Fund

Secure Your Future

23
 8. Pension Benefits offered by the Scheme
8.1. What pension benefits are offered by the Fund?
The Fund offers the following benefits;

i. Retirement Benefits
This is a benefit a Member receives upon reaching Normal
Retirement Age.

ii. Ill Health Benefits

This is a benefit that a Member receives after being retired from
the employment of his employer on medical grounds before the
Member reaches Normal Retirement Age.

iii. Death Benefits

This is a benefit that a Member’s nominated Beneficiaries would
receive if a Member dies while in the service of the Employer but
Buyantanshi before reaching Normal Retirement Age.
Pension Trust Fund iv. Withdrawal Benefits
This is a benefit a Member receives before reaching Normal
Retirement Age on account of resignation, termination,
Secure Your Future redundancy etc from his current employment with the
Participating Employer.

8.2. How much would each benefit type pay me?

Your benefit amount will be equal to the accumulated credit in your
account under the Fund.

8.3. Will I pay tax on my benefits?

You will pay tax on Withdrawal benefits only, no tax is paid on Retirement,
Ill Health and Death Benefits.

8.4. Why should I be charged tax on my benefits?

The idea about a pension fund is to provide for your retirement at
55 years. The government introduced tax on withdrawal benefits to
discourage Members from depleting the benefits early and having no
benefits at retirement.

24
8.5. Other than the pension benefits mentioned above,
are there other benefits offered by the Fund?
No, the law prescribes what benefits an approved Pension Fund like the
Buyantanshi Pension Trust Fund can offer. At the moment the above
mentioned benefits are the only approved benefits an approved Pension
Fund can offer.

Buyantanshi
Pension Trust Fund

Secure Your Future

25
 9. Retirement Pension Benefits
9.1. What happens when I reach Normal Retirement Age?
You will fill in a Retirement Form indicating to the Trustees that you have
reached Normal Retirement Age and how you want your benefits to be
paid.

9.2. Will I receive all the money in my account at

Retirement as cash?
No, you will use a portion of your accumulated credit in your account to
purchase an Annuity or Life Pension. The balance will then be paid to you
as cash.

9.3. Who determines how much should go towards my

Annuity or Life Pension and how much should be
Buyantanshi given to me as cash?
The Fourth Schedule of the Income Tax Act prescribes how much should
Pension Trust Fund be paid as cash to a Member at Normal Retirement Age. Up to a maximum
of one half (50%) of what is in your Individual Member Account can
be paid to you as cash. The more you get as a cash lump sum, the less
Secure Your Future money you leave in your Individual Member Account which translates
into a reduced monthly pension.

9.4. How much then should be paid to me as cash?

The Income Tax Act prescribes the following for a Member that reaches
Normal Retirement Age;

(a) Currently If the Life Pension purchased by your Accumulated

Credit is ZMW5,000 per annum or less, then you will take the
entire balance of your account in cash. This is called a 100%
commutation of pension benefits.
(b) If the pension purchased by your Accumulated Credit is above
ZMW5,000 per annum, the current tax laws allow you to commute
(get cash) up to 50% of your Accumulated Credit in your account.
(c) The balance after taking your cash in (b) must be used to purchase a
Life Pension/Annuity from a Life Insurance company of your choice.

26
9.5. How much will my pension be?
Your accumulated credit, less any part which you take as cash (as above),
will be used to purchase a Life Pension/Annuity. The amount of the
pension is determined by the respective Annuity Providers of your choice
upon the advice and factors recommended to the Annuity providers by
Actuaries.

You can enhance the amount of your life pension by electing to pay
additional voluntary contributions whilst in the service of your employer.

9.6. Will my pension increase once it comes into

payment?
This will be dependent on the type of life pension purchased from the
Annuity provider of your choice. At the point of purchasing your Annuity
information will be given to you by all the Annuity providers for you to
make an informed decision.

9.7. Where do I purchase my Life Pension/Annuity? Buyantanshi

A Life Pension or Annuity can be purchased from approved Annuity
Providers or Life Insurance companies.
Pension Trust Fund

9.8. How do I purchase my Life Pension/Annuity? Secure Your Future

The Trustees through the Fund Administrator will compile information
from all approved Annuity Providers and forward to you for decision
making.

9.9. What information will the Trustees compile?

The information compiled from all the Annuity Providers will include the
amount of the monthly pension each provider is offering you and all the
conditions offered by each Provider.

27
 9.10. What role do the Trustees play in purchasing my
Life Pension?
The Trustees will play no role after you have purchased your Life Pension.
They will however, ensure as required by the Income Tax Act that at the
point of purchasing your Life Pension that;

i. The Life Pension is in your name,

ii. The Life Pension is purchased from an approved provider elected

or chosen by you.

iii. The Life Pension is a compulsory, non-commutable, non-

assignable pension, payable to you for your life-time,

iv. The Life Pension is on terms approved by the Trustees and in

accordance with the Law.

Buyantanshi v. On the purchase of such a pension, the Fund shall have no

further liability in respect of your Membership to the Fund.
Pension Trust Fund Any liability in respect of the pension purchased rests with the
approved annuity provider or Insurer from whom your pension is
purchased.
Secure Your Future
vi. Each Member appoints the Trustees as his duly appointed agent
to do whatever is necessary to effect the purchase of the pension
in terms of the Member’s choice and decision.

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10. Early Retirement due to Ill Health
10.1. What happens if I am too ill to continue working?
Upon production of acceptable medical evidence showing that you
are permanently medically incapacitated, you may, with the agreement
of your Employer, be permitted to retire on medical grounds prior to
your Normal Retirement Age.

10.2. What benefits do I receive if I retire early due to

permanent incapacity?
You will be paid your accumulated credit in your account under the
Fund.

Buyantanshi
Pension Trust Fund

Secure Your Future

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 11. Benefits on your Death
11.1. What happens if I die whilst in the employment
of my Employer?
Your nominated beneficiary or beneficiaries will be paid the full
value of your accumulated credit held in the Fund. You are strongly
requested to nominate a beneficiary or beneficiaries to whom any
remaining benefits will be paid in the event of your death. If you wish
to do so, please complete a Nomination of Beneficiaries Form which
can be obtained from your Employer.

11.2. How will death benefits be paid?

Death benefits will be paid as follows:

i. To your nominated beneficiary or beneficiaries in accordance with

your instructions, if you made this choice.
Buyantanshi
ii. At the Trustees’ discretion with the advice of your Employer if you
Pension Trust Fund did not nominate beneficiaries before your death.

Secure Your Future 11.3. Can my Spouse receive my monthly pension?

Almost all Annuity Providers give an option at the point of you
purchasing an Annuity to buy one that will provide a pension for your
spouse under the joint pension option. If you choose this option then
a portion of your pension will be paid to your spouse until his or her
death. Other beneficiaries other than your spouse can also be included.
This can be discussed with respective Annuity providers.

11.4. What if I die after retirement and having

purchased my Life Pension from an Annuity
provider?
Almost all Annuity Providers give an option at the point of you
purchasing an Annuity to choose a Guarantee Period which would
allow your nominated beneficiaries to continue receiving a portion of
your monthly pension until the Guarantee Period is over. This can be
discussed with respective Annuity Providers.

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12. Withdrawing from the Fund
12.1. What happens if I resign voluntarily?
On leaving the service of your employer no further contributions will be
paid (by yourself or your Employer) to your accumulated credit in the
Fund. Your accumulated credit will remain in the Fund in your named
retirement account and will continue to be eligible for any future
dividends or bonus declarations by the Trustees. Should you choose to
leave your accumulated credit within the Fund until Normal Retirement
Age, you will be called a Deferred Pensioner.

12.2. How will I know the balance in my account on

leaving the service of my Employer?
You will receive a benefit statement clearly showing the value of your
accumulated credit and the monthly contributions (employer and
employee) contributed plus interest that may have been declared by
the Trustees to the date of leaving. At your Normal Retirement Age, your Buyantanshi
accumulated credit will be used to purchase you an annuity and pay you
a portion as cash as per the provision of the law. Pension Trust Fund
12.3. What happens if I do not want to keep my Secure Your Future
accumulated credit in the Fund until Normal
Retirement Age?
You can choose to take an immediate full refund of your accumulated
credit, together with interest and bonuses thereon at the date of leaving
your Employer’s service in lieu of a pension payable at Normal Retirement
Age. The refund of your accumulated credit will be taxed in accordance
with the Income Tax Act Cap 323 as may be amended from time to time.

The tax applied on lump sum refunds was introduced by Government

to encourage Employees to leave their accumulated credit in their
Employer’s Fund until reaching Normal Retirement Age. The payment of
a pension benefit at Normal Retirement Age is the prime reason for the
existence of a pension fund.

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 12.4. What happens if I die between leaving and Normal
Retirement Age?
Any preserved amount of your accumulated credit which remains in the
Fund as a retained benefit will be paid to your nominated beneficiaries,
or otherwise in accordance with the options applicable in the case of
death in service.

12.5. What if I leave and join another company which

operates a pension scheme?
As long as the new pension scheme is approved by the relevant
authorities as per the requirements of the prevailing Zambian legislation,
you may transfer the value of your entire preserved pension benefits in
the Fund to your new employer’s pension scheme.

12.6. What happens if I am dismissed due to dishonesty?

Your employer has the right to recover any loss it has suffered as a result
Buyantanshi of any act of theft, fraud, dishonesty or malfeasance committed by you
or by any other person with your collusion.
Pension Trust Fund

Secure Your Future

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13. How Pension Benefits are paid
13.1. What deductions are made from my benefits?
Any benefits you receive from the Fund will be liable to income tax if
you leave the Fund before age 55 years, as determined by the prevailing
legislation at the time when your benefits are paid. However, no tax is
charged on benefits payable upon reaching normal retirement, early
retirement due to permanent incapacity and death benefits.

13.2. When does a Monthly Pension/Annuity paid to a

pensioner commence and end?
All Annuity Providers provide for pensions to be paid to you as a pensioner
in monthly instalments on the first day of the month immediately
following your decision on the choice of your preferred Annuity Provider.
The pension will cease on the first day of the month following your death
as a pensioner subject to the agreed Guarantee Period.
Buyantanshi
13.3. Can I receive my benefits in a foreign currency? Pension Trust Fund
No, all payments of contributions and benefits are made in the Zambian
currency only.
Secure Your Future
13.4. What if I become mentally or physically disabled?
In the event that you are disabled (mentally or physically) to such an
extent that it impinges on your ability to receive your benefits, the
Trustees may pay the benefits to any person(s), association or corporate
body appointed under the law to represent you.

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 14. Some other information
14.1. Who can change the Rules of the Fund and when?
The Trustees may change the provisions of the Trust Deed and the Rules
with approval of the Pensions and Insurance Authority (PIA) and Zambia
Revenue Authority (ZRA).

14.2. Can I transfer money from another pension fund to

this Fund?
Yes, if you were a member of another approved pension fund with
another company before joining your current Employer you may be able
to transfer your accrued benefits into this Fund. Please contact your
Employer if you would like further information about your particular
situation.

Buyantanshi 14.3. Can I assign my benefits to someone else or use

them as collateral for a loan, mortgage etc.?
Pension Trust Fund You cannot assign or transfer your benefits in the Fund over to anyone
else, or use your balance under the Fund as security for a loan.

Secure Your Future 14.4. How are disputes regarding benefits settled?
Any dispute regarding your benefits entitlement will be settled by the
Trustees, and their decision shall be final and binding on all persons. You
may ask to see a copy of the Rules of the Fund if you are unclear about
this position.

14.5. What do I do if I still do not agree with the Trustees

settlement of my dispute?
If at any time you do not agree with the way the Trustees have resolved
your dispute, difference or question concerning the meaning or effect of
the Rules, every such dispute or question shall be referred to arbitration,
the results of which shall be final and binding .

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14.6. Why should I accept the results of the arbitration
process?
The arbitration process is faster and is meant to ensure Members’ disputes
regarding benefits are resolved as quickly as possible. It is also important
to note that the arbitration proceedings are regulated by the provisions
of the Arbitration Act or Ordinance in force in Zambia and any law or
instrument taking the place of such Act or Ordinance in force at the time
of such arbitration.

14.7. Where can I get further information about the Fund?

Should you need any further information about the Fund, or have queries
about your benefits under the Fund, please contact your Employer or the
Fund Administrator.

Buyantanshi
Pension Trust Fund

Secure Your Future

35
Buyantanshi
Pension Trust Fund

Secure Your Future

Contact us
Aon Zambia Pension Fund Administrators Limited
t +260 211 367 288 f +260 211 258099
[email protected]
www.aon.com/zambia

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