Defined Benefits Scheme
It is also known as a “Final Salary” Pension Scheme.
The retirement benefit is payable at the age of 55, based on one’s final salary, length of service and accrual factor. It is calculated using an actuarially determined formula.
This scheme was administered By Mukuba Pension Trustees from 1982 to 2011 when it was closed off to new members.
Defined Contribution Scheme
It is also known as Money Purchase Scheme.
The benefits paid out to the member comprises the employer and employee contributions with interest and the total amount payable may be used to buy a pension through purchase of an annuity.
Personal Pension Plan
“Sefute, Kuli Sunga We Mwine” is a common Lamba saying, meaning that for one to be safe they needed to take care of their own safety at a personal level. This principle is the same when it comes to planning for retirement. For one to enjoy a proper retirement they need to put in place a pension plan at individual level. The PPP allows them to accumulate up enough funds to start a life once they quit employment.