LCM launches new pension scheme

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Wynter Kabimba   By Sandra Mulowa

LUANSHYA Copper Mine (LCM) has launched a new pension scheme where the employer contributes 25 per cent and the employee five per cent of the basic pay monthly.

Under the old scheme, employees contributed five per cent and employers 11 per cent.

Mine Workers Union of Zambia (MUZ) LCM chairman Stanslous Mwimbe said the new Mukuba pension scheme, the first of its kind for mining companies in the country, was a positive way of saving for retirement.

Mwimbe said the employees were happy with the new pension scheme.

"In the new scheme I am required to contribute five percent and the employer 25 per cent, so in total we contribute 30 per cent of basic pay a month. If I leave employment before I am 55 years old, I am to receive the money minus government tax but if I leave after I am 55 years old, I will get my contribution together with the employers' and interest," he said.

Mwimbe said the workers that had signed forms would start contributing at the end of this month.

"Even if the company was closed today, the employee would get their money plus the employers' contribution and interest. Most employees are happy with this. It means some will be saving about K500,000 a month."

Mwimbe said LCM had about 2,500 workers and about 1,700 were MUZ members.

And MUZ general secretary Osman Munyenyembe commended LCM and called on other mines to emulate it.
"We would like our members to join the Mukuba pension scheme, the reasons are straightforward," he said.

"Government had been under pressure when it sold KCM and Mopani. The mines formed their schemes, which didn't benefit the people. Many people left Mukuba and this affected Mukuba. Those with their own scheme like KCM and Mopani - people haven't benefited as they could have benefited under Mukuba. We are happy that LCM management has agreed to that scheme. That's one thing we would like to thank LCM."

He said the previous pension scheme was not good enough.

"It is just like savings account. A pension scheme should look after you when you retire but this one is just like giving you a refund, especially that salaries are so poor so you find little benefits and they are gone before time. We are encouraging mining companies to go for Mukuba pension scheme," he said.

Munyenyembe called on MUZ members to join the new Mukuba pension scheme