Pension and Social Security Flashcards
What’s social security
This is the protection that a society provides to individuals to ensure access to health care, guaranteed income security for the old, unemployed, invalidity or loss.
Pension scheme
A savings plan to help people save money for later in life
Defined contribution scheme DC
These are occupational pension schemes where employee and employer’s contributions benefit retirement.
A defined benefit pension scheme DB
Amount paid to party after retirement is based on the years of work and salaries earned.
Hybrid scheme
A pension scheme Wich is both defined benefit and defined contribution
Pension scheme design
- Defined contribution
- Defined benefit
- Hybrid scheme
Benefits of NAPSA
- Retirement benefit
- Pre retirement lump sum benefit
- Invalidity benefits
- Survivor benefit
- Funeral grant
Section 8 of NAPSA
Provides for national Pensions scheme stating that this body is where contributions are paid
Section 12 of NAPSA defines a contributing employer
A contributing employer is a person, association or firm registered as tax payers with a contract of service with an employee
Section 14 of NAPSA provides for employer contributions
Stating that contributing employers must contribute on both himself and the employee’s behalf.
Section 18(2) of NAPSA(amendment) no.7 of 2015
Provides for the pensionable ages which is 55 and 65
KMC v Nyambe and others
States that the national pension scheme has made clear of the retirement ages being 55 for early retirement, 60 for normal retirement and 65 for late
Section 2 of NAPSA amendment no.1 of 2023
Defines pre retirement lump sum benefit as a one off benefit payable to a member who hasn’t attained retirement age
Invalidity benefits
A member who hasn’t reached retirement age but is an invalidity as determined by the medical board, per section 26 to 28 became disabled as determined by the
Survivor’s benefit
Payments made to family or dependants of deceased member per section 29 to 33
