Maravi

Workers sue Zamtel, Pensions Authority over unremitted K167.47 pension contributions

Workers sue Zamtel, Pensions Authority over unremitted K167.47 pension contributions
By Abigail Chaponda in Ndola
Wed 23 June 2010, 15:30 CAT

WORKERS at the privatization bound Zamtel Company Limited have sued their company and the Pensions and Insurance Authority for failure to remit their deducted funds to Zambia State Insurance Corporations Limited Pension and are claiming K167.47 billion.

According to a statement of claim filed in the Ndola High Court on Tuesday, Chilyobwe Kachusha and 2,300 others who are the plaintiffs were all employed by Zamtel under permanent and pensionable services and were members of Zambia Telecommunications Company Staff Scheme.

According to the claim, Zamtel deducted from the plaintiffs’ salaries as contributions totaling K22, 315, 606, 882.55 but failed, neglected or refused to remit the money to Zambia State Insurance Corporations Limited (ZSIC) Pension accounts at Barclays Bank, Buteko branch.

The workers claimed that K21, 202, 293, 801.26 stood as unremitted contributions for the period October 2008 to March 2010, while K1, 113, 313, 081 was the total in unremitted contributions for April 2010, all the monies due to the scheme totaling K22, 315, 606, 882.55.

“In May 2010, Pensions and Insurance Authority wrote to all members of the Zambian Telecommunications Company Limited staff pension scheme to advice that the Zambia Telecommunications Company Limited staff pension scheme was de-registered and the Pension and Insurance Authority took over distribution of the asserts of the fund,” read the claim.

“According to the actuarial report as at 31st March 2010, the scheme had accumulated a deficit of K167, 475, 439, 732.00 with an estimated accumulated employer and employees contribution of K99, 160, 452, 106.00.”

The workers stated that the K167, 475, 439, 732.00 arose as a result of the unremitted actions of Zamtel’s failure to remit contributions aforesaid and constitutes accrued benefits for distribution to the members of the scheme.

“In a defined benefits scheme such as the Zamtel company staff pension scheme, it is the duty of the employers to liquidate the deficit, in this case the Zamtel company has accrued rights of the members,” said the workers.

“Although Pensions Insurance Authority took over the distribution of the asserts of the fund, it has not to date paid the members. By reason of the matter, the plaintiffs have suffered loss and damage and the plaintiff claim K167, 475, 439, 732.00 accrued benefits from Zamtel company and interests and an order for distribution for assets by Pension Scheme Authority to Chilyobwe Kachusha and 2,300 others, costs and any other relief the court many deem fit.”

Labels: PENSIONERS, PRIVATISATION, ZAMTEL

posted by MrK @ 5:59 PM