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The Africa 53 Pension Trust Scheme has recorded a 52 percent increase in Fund size as compared to the previous financial year.
The increase in the fund value is mainly driven by member contributions as well as positive performance from government bonds and equity.
In 2022, the scheme closed with its highest weighting in government securities at 61 percent, in addition to Equity 18 percent, and term deposits of 16 percent.
Read more: Over K1 billion paid as pre-retirement benefits, National Pensions Scheme Authority says
During the period under review, contributions saw an increase from K12.2 million in 2021 to K17.7 million in the current year, whilst total payments to members reduced from K7.7 million in 2021 to K5.8 million in the current year.
Furthermore, the overall investment income also saw an increase from the prior year K12 million to K16.7 million in the current year.
The Pension Fund Board of Trustees Chairperson, Harriet Katongo, said as at December 31, 2022, the Fund had a total membership of 2,176, having commenced 1,921.
Katongo said at the Annual General Meeting in Lusaka that the scheme had a steady increase in investment returns throughout 2022.
She announced that the Trustees had declared a net return of 22.93 percent distributable to members for the year ended December 2022, achieving annualized returns above the benchmark of inflation for 2022.
The primary contributors to performance can be attributed to equity assets and income from government securities.
It stated that the Fund received a total contributions amounting to K24.3 million, which was inclusive of transfer from other Schemes of K6.6 million representing an increase of forty-three percent from the year ended 2021.
It further stated that the scheme contribution rates for the year were as per the scheme rules of each scheme under the Africa 53 Pension Trust fund.
The fund recorded a reduction in member pay-outs even though there been an increase of members separating with employers, resulting in early withdrawals.
A total of K5.8 million was paid out to members as benefits during the year.
The Africa 53 Pension Fund , a multi-employer fund, which has been operational for over 12 years after its establishment in May 2011 is administered by Octagon Financial Services Limited.
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