Pension (Levy) Order 2024

GOVERNMENT NOTICE NO. 58

PENSION ACT
(No. 6 OF 2023)

PENSION (LEVY) ORDER, 2024

IN EXERCISE of the powers conferred by section 137 of the Pension Act, 2023, I, SIMPLEX CHITHYOLA, Minister of Finance and Economic Affairs, on the recommendation of the Registrar, make the following Order—

1. This Order may be cited as the Pension (Levy) Order, 2024. Citation
2. This Order shall apply to all pension entities. Application
   3.—(1) A pension entity shall pay a pension levy to the Registrar, in the Pension levy manner prescribed in the Schedule.

(2) A pension entity shall pay the pension levy within four months after the end of financial year, through an electronic funds transfer.

314 6th September, 2024

(3) The pension levy shall be calculated based on audited financial statements of the pension entity.

(4) Where the audited financial statements referred to under subparagraph (3) are not available, pension levy shall be calculated based on the call report for the period ending December for each pension entity.

(5) For purposes of paragraph (4), a “call report” shall have the meaning as ascribed to that term under the Financial Services (Submission of Information relating to the business of Pension Funds) Directive, 2018.

No. 47/2018

Exemption from paying the pension levy

4.—(1) A pension entity shall be exempted from paying the pension levy—

(a) until after eighteen months from the date of its licensing or registration with the Registrar; or

(b) where the pension entity is under receivership, administration, liquidation or has been dissolved.

(2) The exemptions in subparagraph (1) shall not apply to—

(a) a pension fund registering to be a stand-alone or self-administered after it has operated under an unrestricted pension fund; or

(b) a pension entity arising from a merger, acquisition, transfer, amalgamation, conversion or similar corporate transaction.

Penalty for non-compliance

5.—(1) The Registrar may impose the following monetary penalties for violations of this Order—

(a) for a pension fund, an administrator, a pension services company or a provider of programmed withdrawal up to fifty million Kwacha;

(b) for pension broker or pension advisor up to ten million Kwacha; and

(c) for natural persons who are members of the board, or senior management up to ten million Kwacha.

(2) The monetary penalties in subparagraph (1) shall be paid to the Registrar through an acceptable form of electronic payment, within ten working days after being notified of the violation.

Administrative penalties
Cap. 44:05

6. In addition to the penalties prescribed under paragraph 8, the Registrar may impose other administrative penalties as provided for under the Act or the Financial Services Act.

SCHEDULE (para. 3(1))
CALCULATION OF PENSION LEVY

PART—I

Pension Entity	Annual levy rate–percentage of net assets
Pension fund	0.10%
Provident fund	0.05%

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Pension Entity	Annual levy rate–percentage of net assets
Voluntary personal pension fund	0.00%
Corporate or individual trustee	0.00%

PART—II

1. A pension administrator shall pay a minimum pension levy of two million Kwacha or an amount equivalent to 0.5 percent of its audited annual profit after tax for the preceding year, whichever is greater, provided that the amount shall not exceed eight million Kwacha.

2. A pension services company shall pay a minimum pension levy of three million Kwacha or an amount equivalent to 0.5 percent of its audited annual profit after tax for the preceding year, whichever is greater, provided that the amount shall not exceed ten million Kwacha.

3. A pension broker shall pay a minimum levy of five hundred thousand Kwacha or an amount equivalent of 0.5 percent of its audited annual profit after tax for the year, whichever is greater, provided that the amount shall not exceed two million and five hundred thousand Kwacha.

4. A pension advisor shall pay a minimum levy of five hundred thousand Kwacha or an amount equivalent of one percent of its audited annual profit after tax for the year, whichever is greater, provided that the amount shall not exceed two million and five hundred thousand Kwacha.

5. A provider of programmed withdrawal shall pay a minimum levy of five hundred thousand Kwacha or an amount equivalent of 0.5 percent of its audited annual profit after tax for the year, whichever is greater, provided that the amount shall not exceed two million and five hundred thousand Kwacha.

Made this 21st day of August, 2024.

(FILE NO. FIN/PFSPD/02/03)

S. CHITHYOLA
Minister of Finance and Economic Affairs

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