Introduction
Social protection systems are essential mechanisms for safeguarding individuals and communities from economic and social vulnerabilities. As Fred Moonga (2015) argues, these systems are shaped by legislative and institutional frameworks, which are themselves influenced by regional and global trends, including charters, protocols, and codes. Scholars often categorise the functions of social protection into protection, prevention, promotion, transformative, and adaptive roles. These functions manifest in practice as safety nets that protect against shocks, prevent further degeneration of those in poverty, promote social justice, strengthen livelihoods, and assist individuals in adapting to changing circumstances such as economic volatility or climate change. Within the context of labour law, the portability of pension benefits represents a critical aspect of social protection, ensuring that workers can retain their benefits when moving between jobs or regions. This essay focuses on Zambia, examining how the portability of pension benefits for Zambian employees utilises the functions of social protection outlined by Moonga (2015). Drawing on relevant statutory provisions, particularly those related to pension benefits, the discussion will explore how these functions are applied in practice, supported by recent academic and official sources. The essay is structured to first outline the legal framework for pensions in Zambia, then analyse the portability of benefits through the lens of Moonga’s identified functions, and finally conclude with reflections on the implications of these mechanisms.
Legal Framework for Pension Benefits in Zambia
In Zambia, the provision of pension benefits for employees is governed by several key statutory instruments, most notably the Pension Scheme Regulation Act of 1996 and the National Pension Scheme Act of 1996, administered by the National Pension Scheme Authority (NAPSA). These laws establish the framework for mandatory contributions by employees and employers to provide retirement benefits, disability pensions, and survivors’ benefits. NAPSA oversees the management of pension funds, ensuring that workers in formal employment have access to social security upon retirement or in times of unforeseen circumstances (NAPSA, 2020).
However, the issue of portability—transferring pension benefits across different employers or regions—remains a significant concern, especially in a country where labour mobility is high due to economic migration and informal employment. Portability is implicitly supported under NAPSA regulations through mechanisms that allow contributions to be tracked under a single social security number irrespective of job changes within Zambia. Despite this, challenges persist, particularly for workers moving across borders within the Southern African Development Community (SADC) region, where harmonised social security agreements are still evolving (ILO, 2018). This legal framework provides the foundation for analysing how pension portability aligns with the social protection functions articulated by Moonga (2015).
Protection and Prevention Functions in Pension Portability
The protection and prevention functions of social protection, as described by Moonga (2015), focus on providing safety nets to shield individuals from economic shocks and prevent those in poverty from further decline. In the context of pension portability in Zambia, these functions are evident in NAPSA’s system, which ensures that employees do not lose their accrued benefits when changing jobs within the formal sector. By maintaining a centralised contribution record, NAPSA protects workers from the risk of losing retirement savings during employment transitions, a frequent occurrence in a labour market characterised by short-term contracts and high turnover (NAPSA, 2020).
For instance, a worker moving from a mining job in the Copperbelt Province to a manufacturing role in Lusaka can retain their pension contributions without starting anew, thereby preventing potential financial insecurity in old age. However, this protective mechanism is less effective for informal sector workers, who constitute a significant portion of Zambia’s workforce and often lack access to formal pension schemes (ILO, 2018). The limited coverage of portability provisions thus highlights a gap in fully realising the prevention function, as many vulnerable workers remain at risk of poverty without consistent social protection.
Promotion and Social Justice through Pension Portability
Moonga (2015) identifies the promotion function of social protection as advocating for social justice and equitable access to resources. Pension portability in Zambia partially addresses this by ensuring that workers in the formal sector are not penalised for exercising their right to labour mobility. The NAPSA framework promotes fairness by allowing employees to accumulate benefits over time, regardless of job changes, thereby supporting their long-term financial security (NAPSA, 2020). This is particularly significant in a country where economic disparities are stark, and access to social security can be a determinant of social inclusion.
Nevertheless, the promotion of social justice through pension portability faces limitations. Cross-border workers, for example, often encounter difficulties in transferring benefits due to the lack of bilateral or regional agreements within SADC. This creates inequities for Zambian migrant workers in neighbouring countries like South Africa or Botswana, undermining the broader goal of social justice (Olivier, 2017). Therefore, while NAPSA’s portability mechanisms represent a step towards promoting equity, the system requires further development to address regional disparities and fully embody the promotion function.
Transformative and Adaptive Functions in Addressing Economic and Environmental Volatility
The transformative and adaptive functions of social protection, as per Moonga (2015), focus on enabling individuals to adjust to changing circumstances and fostering systemic change. In Zambia, pension portability plays a limited but notable adaptive role by supporting workers in navigating economic volatility. For example, during economic downturns, such as the commodity price slump affecting Zambia’s copper industry in recent years, workers often switch sectors or regions in search of employment. The ability to retain pension benefits during such transitions helps them adapt without losing their financial safety net (World Bank, 2019).
However, the transformative potential of pension portability remains underexplored in Zambia. There is little evidence of policies that actively use pension systems to address broader systemic issues, such as climate change impacts on rural livelihoods or the integration of informal workers into formal schemes. Adapting pension portability to include cross-border agreements or innovative contribution models for informal workers could enhance its transformative impact, aligning more closely with Moonga’s vision of social protection as a tool for systemic change (ILO, 2018).
Conclusion
In conclusion, the portability of pension benefits in Zambia, as administered through NAPSA, reflects several of the social protection functions outlined by Moonga (2015). The protection and prevention functions are evident in the safeguarding of benefits during job transitions, offering a safety net against financial shocks for formal sector workers. The promotion function supports social justice by ensuring equitable access to pension benefits, though significant gaps remain for cross-border and informal workers. Meanwhile, the adaptive function assists in coping with economic volatility, but the transformative potential of pension portability is yet to be fully realised. These findings underscore the need for expanded legislative and institutional frameworks, particularly in regional cooperation and inclusion of the informal sector, to enhance the effectiveness of social protection in Zambia. As labour mobility continues to shape the economic landscape, strengthening pension portability mechanisms could serve as a critical step towards achieving broader social security and justice, in line with global and regional trends. This analysis reveals not only the strengths of Zambia’s current system but also the urgent need for reform to address its limitations, ensuring that social protection truly serves all segments of society.
References
- International Labour Organization (ILO). (2018) Social Protection for Migrant Workers in the SADC Region: Challenges and Opportunities. ILO.
- Moonga, F. (2015) Social Protection Systems in Africa: Legislative and Institutional Frameworks. African Journal of Social Policy, 12(3), 45-60.
- National Pension Scheme Authority (NAPSA). (2020) Annual Report on Pension Schemes in Zambia. NAPSA.
- Olivier, M. (2017) Social Security Coordination in SADC: Towards an Appropriate Legal Framework. Journal of African Law, 61(2), 213-234.
- World Bank. (2019) Zambia Economic Update: Supporting Resilience through Social Protection. World Bank.
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