COLLECTIVE AGREEMENT BETWEEN NATIONAL PENSION SCHEME AUTHORITY AND ZAMBIA UNION OF FINANCIAL INSTITUTIONS AND ALLIED WORKERS - 2014

THIS AGREEMENT is made the BETWEEN THE NATIONAL PENSION SCHEME AUTHORITY (hereinafter called "the Authority") having its Corporate Office at Lusaka House Ben Bella Road Lusaka of the one part and THE ZAMBIA UNION OF FINANCIAL INSTITUTIONS AND ALLIED WORKERS (hereinafter called "Union") having its Head Office at Luangwa House Cairo Road Lusaka of the other part.

WHEREAS:

The Authority at the request of this Union has agreed to offer the following conditions of service to its employees. IT IS HEREBY AGREED as follows:

1. This Agreement shall come into force on the 1st day of January 2014 except where stated otherwise, and shall remain in force until 31st December 2015 unless amended as provided hereinafter.

2. This Agreement shall be amended, varied or withdrawn as and when both parties agree.

3. The provisions of this Agreement shall bind the Authority provided that they shall not apply to employees out of the services of the Authority for the reasons other than death by the first day of its implementation.

IN WITNESS WHEREOF the parties have hereunto set their hands at Lusaka House Ben Bella Road Lusaka on the day and year first before written.

SECTION I : GENERAL PROVISIONS

1.0 PRELIMINARY

This Agreement may be cited as the National Pension Scheme Authority Collective Agreement in this Agreement, unless the context otherwise requires; -

"Act means the National Pension Scheme Authority Act

"Basic Salary' means monthly payments for regular employment determined on a yearly basis excluding allowances.

"Authority/Employer” means the National Pension Scheme Authority.

"Employee" means all those who undertake to join the Authority and therefore, render service to the above mentioned Authority and are defined as established employees by the industrial and Labour Relations Act (CAP 269 of the Laws of Zambia).

"Employer" means the National Pension Scheme Authority and all its branches.

"Union” means the Zambia Union of Financial Institutions and Allied Workers.

"Bargaining Unit" means a body established jointly by Management and the Union for the purpose of carrying out collective bargaining.

"Dependant" means member of the nucleus family of the Employee consisting, spouse, biological and legally adopted children up to the age of 21 years and should be at School or College with documentary evidence, biological father and mother.

2.0 OBJECTIVES

2.1 It is hereby realised and agreed that the advancement of Employees and their livelihood depends on the success of the Authority. The Authority must look to its employees to manifest loyalty and devotion and to maintain a high standard of efficiency and hard work. The Authority in return is concerned with the well-being and security of all its employees. To this end both the Union and the Authority have mutual obligations which may be summarised as follows:-

2.1.1 Determination and implementation of an equitable pay structure.

2.1.2 Promotion of the Employees’ participation in the management of the affairs of the Authority through the Union.

2.1.3 Promotion of Employees’ morale to ensure high productivity and efficiency.

2.1.4 Reduction labour turn over by combating indiscipline such as idleness and absenteeism and other vices of unproductive nature.

2.1.5 Promotion of increased work output performance.

3.0 DISCIPLINE AND APPLICATION OF THIS AGREEMENT

3.1 DISCIPLINE

(a) The Union acknowledges that it is the function of the Employer to maintain order discipline penalise employees for proper cause.

(b) In pursuance of this, it is hereby agreed by both parties that the Authority shall deal with any infringement by an employee in accordance with the Code of Discipline and Procedures that has been published separately, and as amended from time to time,

3.2 APPLICATION OF THIS AGREEMENT

The Conditions of Service contained in this Agreement shall apply to Employees represented by the Union in accordance with the Industrial and Labour Relations Act except such Unionised Employees out of employment of the Authority for reasons other than death on the first day of implementation of this agreement.

4.0 RECRUITMENT AND TERMS OF APPOINTMENT

4.1Recruitment of personnel shall remain the prerogative of Management of the Authority and priority for employment shall be given to Zambian applicants but non-Zambians may be considered for appointment where a qualified Zambian is not available.

4.2 Candidates who are required to travel for interviews from other parts of the country to any town designated as an interview centre shall be reimbursed travelling expenses incurred by using the cheapest available mode of transport and accommodation.

4.6 The effective date of confirmation shall be the date of communication of a successful performance appraisal in either case of first appointment or promotion.

4.7 An Employee shall not be appointed or confirmed as an established Employee unless he/she has been examined and declared fit by a medical practitioner.

5.0 TRAVELLING AND REMOVAL EXPENSES ON FIRST APPOINTMENT

5.1 The Authority shall meet travelling and removal expenses of an Employee on first appointment to the Authority’s establishment.

6.0 SALARY

6.2 On the expiry of the existing Collective Agreement and the commencement of a new one, salary awards shall be determined by the Bargaining Unit.

6.3 The parties have agreed to effect a salary increase which also takes into account the merger to the previous basic salary of Housing Allowance as shown in Schedule 1 of this Agreement. From now going forward the separate payment of Housing Allowance has ceased.

6.5 Depending on the economic circumstances prevailing at the time either party may request for the convening of the Bargaining Unit to review the salaries on an annual basis.

7.0 HOURS OF WORK

8.0 PUBLIC HOLIDAYS

9.0 TRANSFERS

9.1 An Employee shall be liable to be transferred by the Director-General at any time from the post which he or she occupies to any other post in the Authority's administration provided that he or she shall not thereby suffer, any reduction in his or her emoluments as provided in this Agreement.

10.0 STAFF PENSION SCHEME

11.0 STAFF GROUP LIFE ASSURANCE SCHEME

11.1 An Employee serving the Authority whether on established or contract terms shall be eligible for the Group Life Assurance Scheme of the Authority which shall provide a lump sum benefit equal to three and half (3.5) times of one’s annual salary subject to the limits provided in the Insurance policy cover.

11.2 Where the deceased Employee has left no Will, the lump sum benefit shall be distributed in accordance with the intestate Succession Act.

11.3 The regulations governing the Scheme will be maintained by the Human Resources Department and can be obtained on demand.

SECTION II : ALLOWANCES

12.0 HOUSING ALLOWANCE

12.1 Housing Allowance has been merged to the basic salary effective 1st January, 2008.

13.0 TRANSPORT. MEAL AND EDUCATION ALLOWANCES

14.0 MEDICAL ALLOWANCE

15.0 ACTING DUTY ALLOWANCE

15.1 An Employee appointed to act in any position higher than substantive post for a period of not less than fourteen (14) consecutive working days shall be entitled to an Acting Allowance equal to 12% of incumbent’s salary.

15.2 The said allowance shall not in any way form part of the basic pay but shall be taxable.

16.0 RESPONSIBILITY ALLOWANCE

16.1 An Employee appointed to perform duties of another Officer in the same grade for a period of fourteen (14) working days or more shall be entitled to a Responsibility Allowance of equal to 6% of incumbent’s salary.

17.0 OUT-OF-POCKET ALLOWANCE

17.1 An Employee attending Training on residential basis within or outside station will be entitled to an Out of Pocket Allowance of Kwacha One Hundred and Sixty Five (K165) per day up to a maximum period of 30 days. This allowance is subject to revision by agreement of both parties.

18.0 SHIFT ALLOWANCE

18.1 An Employee who is engaged in shift work shall be paid shift allowance which shall be equal to twenty five per cent (25%) of basic monthly salary.

19.0 KILOMETRE ALLOWANCE

19.1 Where an Employee is granted permission to use his or her personal vehicle and is required to perform Authority duties outside the twenty five (25) kilometre radius from duty station an allowance at the rate of cost of fuel per litre per kilometre and vehicle maintenance allowance of Four Hundred Kwacha (K400) per month or a proportion thereof will be paid to the Employee.

20.0 LEAVE AND HOLIDAY ALLOWANCE

20.2 In the case of new entrants, annual leave will only apply after an employee has served for a minimum period of twelve (12) months. Employees are however entitled to other forms of leave as provided for in the law and their conditions of service.

21.0 UPSET ALLOWANCE

21.1Where an Employee is transferred by the Authority from one station to another in accordance with Article 9 of this Agreement the Employee shall be entitled to an upset allowance of Kwacha Nine Thousand (K9,000) across the board which wilt be grossed up for tax plus transport for the employee, spouse, children registered with the Authority. The employee shall be paid Subsistence and Business Allowances for fourteen (14) days whilst looking for accommodation at the new station and this period shall not be extended.

21.2 The Authority shall comprehensively insure the Employee’s goods on transfer to any destination within Zambia.

22.0 LUNCH ALLOWANCE

22.1 A Lunch allowance of Kwacha One Hundred and Twenty (K120) shall be paid to:

(i) An Employee who is required to be away from duty station on official business for a period of not less than eight (8) hours.

(ii) An Employee who works throughout lunch time.

(iii) Cashiers who will be required to work during peak period only.

22.2 In ail the cases in 21.1, the supervisor shall approve the work in advance.

22.3 This Allowance will be paid both on the outward and return journeys for Employees who are required to be away from duty station beyond one night.

23.0 ALLOWANCES PAID WHILE TRAVELLING ON DUTY WITHIN ZAMBIA

23.1 An Employee who is required to travel on duty shall be paid Subsistence and Business allowances in line with the prevailing rules in accordance with Schedule II in this Agreement.

23.2 If an Employee in exceptional circumstances is required to incur expenditure greater than the appropriate entitlement shown in Schedule II the Employee may seek re-imbursement of actual expenditure incurred provided that the claim is supported by receipt vouchers and a full explanation of the circumstances which gave rise to the claim.

23.3 Married Employees who travel with their spouses would be entitled to one and halftimes the single rate provided prior permission from the Director- General is granted to the Employee to be accompanied by the spouse.

24.0 TRAVELLING ALLOWANCE WHILE ON DUTY OUTSIDE ZAMBIA

24.1 An Employee who travels outside Zambia shall be entitled to allowances as directed by Government from time to time.

SECTION III: LEAVE AND LEAVE ENTITLEMENT

25.0 VACATIONAL LEAVE

25.1 An Established Employee shall be entitled to accrued leave days upon commencement of duties with the National Pension Scheme Authority,

25.2 Employees in grades NPS 05, NPS06 and NPS07 shall be entitled to three (3) leave days for each completed month of unbroken service.

25.3 Upon written request and supported by documentary evidence an Employee may be granted a compassionate commutation.

25.4 15 working days shall be the minimum annual leave entitlement and 15 working days shall be the maximum number of days to be commuted. A maximum of 6 days shall be carried over to the following year.

25.5 Saturdays, Sundays and Public holidays falling within the period of vacation leave shall not be counted as days on leave.

25.6 An Employee shall be allowed to accumulate a maximum of thirty six (36) days in a financial year for Staff in NPS 05 to NPS 07. An employee shall be required to proceed on annual leave once per year. Any leave days in excess of six not utilized by the end of each year will be commuted for cash and be paid along with the December Salary.

25.7Commutation formula shall be as follows:

Basic Pay x 12 Months x No. of Days/ 250

26.0 LOCAL LEAVE

26.1Saturdays, Sundays and Public Holidays failing within the local leave shall not be included as leave days when an Employee proceeds on leave for less than thirty (30) days.

27.0 SICK LEAVE

(iii) On recommendation from registered Traditional Healers provided there is a letter from a Government Hospital doctor confirming that the Employee attended the Hospital and that the nature of the illness could not be cured.

27.2 Granting of sick leave must be supported by a valid medical certificate from a Medical practitioner registered with the Medical Council of Zambia. If the Employee's absence is not supported by a medical certificate it shall be treated as absence from duty and the Code of Discipline and Grievance Procedures shall be enforced.

28.0 SPECIAL LEAVE

28.1 An Employee may be granted special leave in the following circumstances on such terms and conditions as the Director-General may determine:-

28.1.1 for the purpose of preparing and sitting as a candidate for an approved examination, an employee may be granted a maximum period of Ten (10) working days,

28.1.2 for the purpose of attending court proceedings as a witness.

28.1.7 in the event of the death or serious illness of a full blood sister or brother, five (5) working days shall apply.

29.0 MATERNITY LEAVE

30.0 PATERNITY LEAVE

31.0 LEAVE WITHOUT PAY

31.1 An Employee may be granted leave without pay with the consent of the Director-General. Such leave shall not accrue leave days and shall not count towards service benefits.

SECTION IV: STAFF LOANS AND OTHER FINANCIAL ASSISTANCE

32.0 PROVISION OF STAFF LOANS

32.1 The provision of in-house Staff Loans relating to homeownership, personal needs, cars, motorcycle, bicycle, etc ceased with effect from 1st January, 2008

32.2 The Authority will make arrangements with selected commercial banks to facilitate long term borrowing and employees who wish to access loans will approach the bank directly in liaison with Finance and Human Resources Directorates.

32.3 Information relating to the operation of the Loan Scheme will be issued separately to the employees.

33.0 SALARY ADVANCE

33.1 An Employee may be eligible for a salary advance of up to one month’s basic maximum repayment period shall be three (3) months. Salary advances may be accessed in needy circumstances up to three times in a

33.2 A Salary Advance will only be given for unexpected contingencies that may arise and not as a result of poor budgeting.

33.3 A Salary Advance is not a right and Management will exercise due prudence in determining whether this should be given or not.

33.4 The Salary Advance will only be granted subject to the employee’s ability to service it.

33.5 Once recoveries for salary advance are effected they will run the full course of three months.

33.6 An employee will only be assisted if need arises up to three salary advances in any given year.

34.0 FUNERAL GRANTS

SECTION V: SEPARATIONS

35.0 NORMAL RETIREMENT

35.1 An Employee shall retire from the Authority’s service on attaining the age of 55 years or on account of any infirmity of mind or body confirmed by a registered medical practitioner.

35.2 The Employee under normal retirement shall be entitled to a pension as stipulated in the Staff Pension Rules.

35.3 The Authority shall give such an Employee six (6) months notice to retire or six (6) months basic salary in lieu of notice.

36.0 PREMATURE RETIREMENT

36.1 An Employee may apply to the Authority for Early separation upon attaining the age of forty-five (45) years or upon completion of fifteen (15) years of continuous service with the Zambia National Provident Fund and/or National Pension Scheme Authority.

36.2 The Authority may also prematurely retire an Employee who attains the age of forty-five (45) years or who completes fifteen (15) years of unbroken service with Zambia National Provident Fund and/or National Pension Scheme Authority.

36.3 The Employee under premature retirement shall be entitled to a lump sum retirement benefit calculated thus:-

36.4 The Employee under premature retirement shall give or be given a six (6) months notice to retire or six (6) months basic salary in lieu of such notice.

37.0 REDUNDANCY

37.3 GRATUITY

37.3.1 The Authority shall pay the following for an Employee declared redundant:-

(i) Below five (5) years of continuous service in Zambia National Provident Fund and/or National Pension Scheme Authority- two (2) months basic salary

(ii) Five (5) years and below ten (10) years of continuous service in Zambia National Provident Fund and/or National Pension Scheme Authority - two and half (2.5) months basic salary.

(iii) Ten (10) years and below fifteen (15) years of continuous service in Zambia National Provident and/or National Pension Scheme Authority- three (3) months basic salary,

(iv) Fifteen (15) years and below twenty (20) years continuous service in Zambia National Provident Fund and/or National Pension Scheme Authority - three and half (3.5) months basic salary.

(v) Twenty (20) years and above of continuous service in Zambia National Provident Fund and/or National Pension Scheme Authority- four (4) months basic salary.

37.4 NOTICE OF REDUNDANCY

37.4.1 The Authority shall give:-

(i) Six (6) months notice or payment of six (6) months basic salary in lieu of notice to an Employee to be declared redundant.

38.0 REPATRIATION EXPENSES

38.1 The Authority shall meet repatriation expenses to the Employee’s destination within Zambia under the following circumstances:-

(ii) where the Employee being declared redundant by the Authority

(iii) where the Employee retiring from the Authority’s service; and

(iv) where the Employee dies in service in which case the benefits are payable to the family of the deceased Employee. In all cases the NAPSA Truck or equivalent shall be used and One Thousand Kwacha (K1, 000.00) shall be paid for food while travelling.

(v) where transport is not provided, a repatriation fee of Kwacha Nine Thousand (K9,000) which shall be grossed up for tax shall be payable to the employee or the family and in addition One Thousand Kwacha (K1,000) will be paid for food while traveling.

39.0 RESIGNATION

39.1 An Employee who intends to resign shall give notice of his intention to resign to the Director-General and such notice shall not be less than one calendar month. Where a shorter period of notice has been given the Employee shall forfeit one month's basic salary in lieu of the short notice provided that;

(i) The Director-General may permit an employee to resign without giving notice in writing or at such short notice as he/she may determine

(ii) Any period spent on vacation leave shall not without the Director- General’s prior approval form part of the period of notice.

39.2 The Terminal Benefits shall be as follows:-

(i) Commutation of leave days

(ii) Employees and Employers contributions towards NPF/NAPSA Staff Pension Scheme shall be refunded plus interest and such refund shall be subject to the current national tax regime or as approved by Parliament.

(iii) The Employee’s indebtedness will be recovered from the total sum of (i) plus (ii) or (iii) whichever is applicable.

40.0 DISCHARGE

40.1 An Employee may be discharged from the Authority's service by giving one month's notice or payment of a month's salary in lieu thereof. In addition such

(i) TERMINAL BENEFITS

(a) Commutation of accrued leave days

(b) Employee’s and Employer’s contributions towards NPF/NAPSA Staff Pension Scheme shall be refunded plus interest and such refund shall be subject to the current national tax regime.

(c) An Employee's indebtedness will be deducted from the total sum of (a) plus (b) (where applicable).

41.0 SUMMARY DISMISSAL

41.1 TERMINAL BENEFITS

41.1.1The Terminal Benefits for such Employees shall be as follows:-

(i) Commutation of accrued leave days

(ii) Employee’s and Employer’s contributions towards NPF/NAPSA Staff Pension Scheme shall be refunded plus interest and such refund shall be subject to the current national tax regime.

(iii) Employee’s indebtedness will be deducted from the sum total of (a) plus (b).

SECTION V: OTHER CONDITIONS

42.0 PROVISION OF TOOLS

42.1 The Authority undertakes to provide tools for use on Authority work by new entrant trade tested Employee and such tools shall remain the property of the Authority.

43.0 PROTECTIVE WEAR AND UNIFORMS

43.1An Employee who is required to wear uniforms and protective clothing shall be entitled to the same as defined in Schedule IV of this Agreement.

44.0 LONG SERVICE AWARD

45.0 CERTIFICATE OF SERVICE

45.1 An Employee leaving the service of the Authority shall be entitled to a certificate of service stating:-

(I) Name of employee

(II) Name of employer

(III) Date of engagement

(IV) Nature of employment and lastposition held

(V) Salary and grade on termination

(VI) Date of termination

(VII) National Registration Card Number

(VIII) National Pension Scheme Authority’s Account Number

(IX) A statement showing the amount of Statutory Contributions paid by the employer to National Pension Scheme Authority.

(X) Social Security Number

46.0 INTEREST OF EMPLOYEE CONFLICTING WITH OFFICIAL DUTIES

46.1 If an Employee, any relation of an Employee or the spouse of an Employee:-

46.1.1 Acquires or holds any direct or indirect pecuniary interest in any firm or company applying or negotiating for a contract with the Authority and any such contract relates to matters falling within the function of the office in which he/she works, or,

46.1.2 Owns any immovable property in or has any direct or indirect pecuniary interest in any firm or company and such ownership or interest results in private interest of the Employee coming into or appearing to come into conflict with official duties, the Employee shall forthwith report the facts to the Director-General and shall thereafter comply with lawful directions in connection therewith as the Director- General may from time to time give him/her.

SCHEDULE I: Approved Unionised Salary Structure 2014

	Grade NPS05	Grade NPS06	Grade NPS07
Minimum	14,808.11	12,326.90	10,625.48
Maximum	17,998.31	14,453.80	12,256.08
Range	3,190.20	2,126.90	1,630.60
Notch value	319,02	212.69	163.06
0	14,808.11	12,326.90	10,625.48
1	15,127.13	12,539.59	10,788.54
2	15,446.15	12,752.28	10,951.60
3	15,765.17	12,964.97	11,114.66
4	16,084.19	13,177.66	11,277.72
5	16,403.21	13,390.35	11,440.78
6	16,722.23	13,603.04	11,603.84
7	17,041.25	13,815.73	11,766.90
8	17,360.27	14,028.42	11,929.96
9	17,679.29	14,241.11	12,093.02
10	17,998.31	14,453.80	12,256.08

SCHEDULE II: ALLOWANCES PAID WHILE TRAVELLING ON DUTY WITHIN ZAMBIA

SALARY GRADE	ALLOWANCE(K)
NPS 05	370
NPS 06	360
NPS 07	350

SCHEDULE III: FUNERAL GRANTS

Employee	K4,000.00
Employees Spouse/Biological Child	K3,300.00
Biological Father/Mother	K3,000.00

SIGNED

For and on behalf of National Pension Scheme Authority in the Presence of:

- C MPUNDU

DIRECTOR GENERAL

MANGEMENT TEAM

- B C MELEKI

DIRECTOR HUMAN RESOURCES AND ADMINISTRATION

- L CHILUMBA

AUTHORITY SECRETARY

- K D CHIWELE

DIRECTOR FINANCE

UNION TEAM

SIGNED

For and on behalf of Zambia Union Financial Institutions and Allied Workers in the presence of:

- C MSISKA

GENERAL SECRETARY

- C MUKUKA/O-N_

ZUFIAW REPRESENTATIVE

- C MULENGA

OUTGOING BRANCH CHAIRPERSON (LUSAKA)

- C NSOKOLO

OUTGOING BRANCH CHAIRPERSON (KITWE)

12 MAY 2014.