By NATION REPORTER
KONKOLA Copper Mine has announced that it will not pay its ex-employees their remaining pension benefits unless the former miners buy annuities to continue accessing the remaining 50 percent.
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KCM General Manager Corporate Affairs, Shapi Shachinda said after retiring from the company at retirement age, the former employees were paid 50 percent of their benefits while another 50 percent was held by the Pension Scheme in line with the Income Tax Act and the Pension Scheme Regulations.
He said employees were expected to buy annuities to continue accessing the remaining 50 percent.
Under the KCM Pension Trust Scheme, miners made contributions in line with the pension scheme rules and regulations, which comprised employee monthly deductions and a contribution of the employer, in this case KCM.
“Initially, several employees wanted to access their full benefits and engaged the government through the Pensions and Insurance Authority (PIA). The PIA, other key institutions and KCM have made several explanations that the employees have to purchase annuities in order to access their 50 percent balances,” he said.
Mr Shachinda said some of the former miners had bought annuities and were currently on monthly pension payments, while others had not done so, and had continued to advocate payments of full amounts of the remaining 50 percent.
He, however, said this was not possible because the legal requirement was that the workers should buy annuities to be placed on monthly pension payouts.
“Neither the government nor KCM is withholding funds for the retired ex-miners as the law is clear on the payment of their 50 percent balances.
KCM would like to encourage the former miners to make up their minds and purchase annuities in order to access their money in accordance with the law,” he said.
He said KCM and the Pension Scheme did not discriminate in the management of the former miners’ pension benefits.
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