Maravi

NAPSA bemoans inadequate coverage of labour force

NAPSA bemoans inadequate coverage of labour force
By Florence Bupe
Fri 22 Jan. 2010, 04:01 CAT

THE National Pension Scheme Authority (NAPSA) has said it is faced with the challenge of covering mining industry employees because of certain stipulations under the investment agreements with government.

In his submission to the Parliamentary Committee on Economic Affairs and Labour yesterday, NAPSA director general Stanley Phiri acknowledged that some sectors of the labour force are not adequately covered in terms of pension schemes and other social security services because of the existing laws.

He said NAPSA was exploring ways to accommodate more workers under the scheme but lamented that some mining houses were giving the global economic crisis as an excuse for their continued exemption from remitting contributions to the authority.

“It is true that some mines have been exempted from ensuring that their employees belong to NAPSA and making remittances to the authority. This is giving us challenges in terms of ensuring that all employees are covered by social security services,” Phiri said.

“We are trying to address this challenge but some mines are giving us the excuse of the global economic crisis and this is delaying our efforts to get their workers on board.”

Phiri also said efforts were underway to encompass the informal sector in the scheme, as opposed to the current system which just accommodates the workforce in the formal sector.

During the question and answer session, Kafulafuta member of parliament George Mpombo observed that the current investment policies in the pension funds sector were outdated and archaic.

He said there was need to revise the policies in order to boost investments.

“The current investment policies are outdated and archaic and they are acting as brakes to development,” said Mpombo.

The Committee on Economic Affairs and Labour is chaired by Zambezi West member of parliament Charles Kakoma.

Labels: GEORGE MPOMBO, NAPSA, PENSIONERS, STANLEY PHIRI

posted by MrK @ 6:46 PM