Defined Contribution
Your savings pot, growing over time.
The Defined Contribution scheme gives every member their own individual retirement account. Your benefit at retirement reflects what has been saved and how it has grown through investment.
What is a Defined Contribution pension?
In a Defined Contribution (DC) pension, you and your employer make contributions to your own individual account. These contributions are invested, and the balance grows over time through investment returns. When you retire, your retirement benefit is based on the accumulated value of your account.
Unlike a Defined Benefit scheme, your final benefit is not guaranteed — it depends on how much has been contributed and how the investments have performed. In return, you can track your account balance at any time and benefit directly when investments perform well.
Contributions
Both you and your employer contribute to your individual DC account every month. Contributions are expressed as a percentage of your monthly pensionable salary.
Your contribution
8%
of your pensionable salary, deducted from your pay each month.
Employer contribution
12%
of your pensionable salary, paid by your employer each month.
Combined, you and your employer contribute 20% of your pensionable salary to your account each month. Over a full career, this adds up to a substantial retirement savings pot.
Investment options
Your DC contributions are invested in one of three investment strategies, managed by independent professional investment managers on behalf of the fund. New members are enrolled in the Balanced Growth Fund by default; you may request a switch at any time by contacting member services.
Balanced Growth Fund Default
A diversified multi-asset strategy targeting real returns of inflation plus 4% per annum over rolling five-year periods. Invests across domestic equities, bonds, property, and cash. Suitable for most members with more than ten years to retirement.
Income Protection Fund
A lower-risk strategy weighted towards government bonds and money-market instruments. Targets inflation plus 1% per annum. Suitable for members approaching retirement who wish to reduce investment risk.
Capital Preservation Fund
A capital-secure strategy invested primarily in bank deposits and short-term government securities. Aims to preserve the nominal value of contributions. Suitable for members within two years of retirement.
At retirement
When you reach your normal retirement date (age 60), your DC account balance is used to provide your retirement benefit. You may choose from the following options:
- Lump sum: Take up to one-third of your account balance as a tax-free lump sum (subject to Zambian tax regulations), with the balance used to purchase an annuity.
- Full annuity: Use your entire account balance to purchase a monthly income for life from an approved life insurer.
- Phased withdrawal: Draw down your account over an agreed period. Available in certain circumstances — contact us for details.
Contact us at least three months before your retirement date so we can calculate your projected balance and walk you through all the options available to you.
Benefits at a glance
Individual account
Your own retirement savings pot. You can request your account balance at any time.
Employer contributions
Your employer adds 12% to your account each month — an immediate 150% top-up on your own 8% contribution.
Death benefit
If you die before retirement, your full DC account balance is paid to your nominated beneficiaries.
Ill-health retirement
Members permanently incapacitated before age 60 may access their full DC account balance early, subject to trustee approval and medical evidence.
Check your DC account balance
Contact our member services team to request an up-to-date statement of your DC account balance.