By GRACE CHAILE LESOETSA
OVER 40 Bank of Zambia (BoZ) retirees have sued the central bank in the Lusaka High Court demanding the payment of their pension benefits.
Mr Charles Mpofana and 43 others want the court to order payment of their pension in line with the formula applied in the deed of mutual settlement and release dated December 22, 2020 executed between Kwacha Pension Trust Fund and them, inclusive of all the years of service.
They are seeking an order that the service pension period in excess of 30 years was not a limiting factor for them to access or be paid their pension benefits for all the years served.
The 44 are demanding interest on the amount due from the date of the said deed of mutual settlement and release up to date of final payment and costs.
Kwacha Pension Fund Trust has been cited as the second defendant in the matter.
According to documents filed in court, the former employees were retired on various dates effective 2004.
Mr Mpofana stated on behalf of others that Kwacha Pension Trust Fund was an approved single employer pension trust fund that manages a defined pension scheme for employees of BoZ.
He stated that they were part of the group of retirees who on June 4, 2019 through a letter of demand against Kwacha claimed payment of their pension benefits computed using incorrect scales.
He stated that the payment of pension benefits was based on rules changed without their consent.
He stated that Kwacha Pension Trust Fund acknowledged the incorrect payment of their pension benefits thus rectified the anomaly through a deed of mutual settlement and release dated December 22, 2020.
They however claim that Kwacha Pension Trust Fund excluded them from the deed of mutual settlement realised on the understanding that their contribution period exceeded that provided for under the pension rules.
He stated that, that being the case, their pension remains unpaid to date.
Mr Mpofana stated that it was not in dispute that during the material period of service, BoZ deducted five percent from their emoluments which was added to their 15 percent contribution of the emoluments for onward transmission to Kwacha.