Africa-Press – Eswatini. “Civil servants are not facing a future of diminished benefits. On the contrary, they will be better off under the new National Pension Fund,” says Miccah Nkabinde, General Manager Operations at the Eswatini National Provident Fund (ENPF).
With these words, Nkabinde moves to calm fears that the proposed Eswatini National Pension Bill 2025 could weaken existing pensions or force workers to “throw away their money.” He insists the reform is forward-looking, designed to add another layer of protection and strengthen retirement security for every economically active liSwati, including civil servants.
“This is about securing dignity, expanding coverage, and making sure every worker retires with more, not less,” he explains.
The Eswatini National Pension Bill 2025, currently before Parliament, has ignited intense debate across the country. Some claim the reform could undermine the Public Service Pension Fund (PSPF), create massive deficits, or force civil servants to “throw away their money.” Others fear the end of lump-sum pay-outs, restrictions on benefits, or even the collapse of the occupational pension system.
Yet, according to Nkabinde, these concerns are misplaced. “This is not about reducing benefits,” he stresses, “it is about strengthening retirement security. Civil servants will be better off, not worse off under the proposed national pension scheme.”
Two Layers of Retirement Security
The Bill proposes converting ENPF into a universal National Pension Fund (NPF). Rather than replacing occupational pension schemes such as the PSPF, it adds a second layer of protection.
• Occupational funds (like PSPF) remain employer-based and continue to provide pensions based on salaries.
• The National Pension Fund covers all economically active emaSwati, including those in the informal sector, seasonal workers, and the self-employed.
At retirement, a civil servant will draw two pensions: one from the PSPF and another from the NPF. In the event of death, dependants will receive survivors’ benefits from both.
“This is about complementarity, not competition,” Nkabinde explains. “The national pension fund strengthens what already exists by ensuring broader coverage and higher combined benefits.”
Addressing the Fear of Collapse
One of the loudest claims is that the reform could collapse the occupational pension system and create an E2 billion deficit.
Nkabinde dismisses this. “That is simply not true. Contributions to NPF are capped. For example, on a salary of E10, 000, only E400 goes to NPF while the rest stays with the PSPF. On a salary of E15,000, E400 goes to NPF and E2,600 stays with PSPF. The occupational fund still retains the bulk of contributions.”
Because benefits are calculated on the adjusted base, PSPF obligations match the contributions it receives. “There is no hole, no deficit, and no collapse,” he adds.
Breaking Down the Numbers
• Contribution Rate: 10% of salary up to a capped ceiling (currently E4,000).
• Example 1: Salary = E10,000 → E400 to NPF, E1,600+ to PSPF.
• Example 2: Salary = E15,000 → E400 to NPF, E2,600 to PSPF.
This system ensures civil servants do not lose out. Instead, they gain a second set of benefits — pensions, funeral cover, and survivors’ benefits — without reducing what PSPF offers.
Tackling the Myths
1. The “Double Dipping” Fear
Critics warn that members won’t be allowed to claim from both schemes. But Clause 69 of the Bill clarifies that the ban on “double dipping” only applies to duplicate claims within public contributory schemes for the same event (e.g. claiming twice for one work injury). Occupational pension funds like PSPF are explicitly exempt.
“This means civil servants still receive benefits from both PSPF and NPF,” Nkabinde stresses.
Internationally, similar rules exist: South Africa prevents duplicate claims between UIF, COIDA, and RAF; Eswatini already offsets MVAF and Workmen’s Compensation. Clause 69 aligns with global best practice without taking away benefits.
2. No Lump Sum Pay-Out
Many are unsettled by the Bill’s exclusion of lump-sum retirement pay-outs. Nkabinde explains this is deliberate.
“Contributions to the national pension fund are relatively small. If we allow lump-sum withdrawals, the monthly pension left behind becomes meaningless. The focus is on ensuring retirees receive a sustainable income for life, not a one-off payout that leads to poverty within years.”
The provident fund model left many retirees vulnerable. The new pension model prioritises dignity and financial security in old age.
3. The E2 Billion Deficit Claim
PSPF has suggested a looming shortfall. Nkabinde explains why this is false: “Benefits are calculated on the revised base salary after the capped contribution. This adjustment ensures obligations and contributions remain aligned. The system is financially sustainable.”
Survivors’ Benefits: Doubling the Safety Net
Under the Bill, survivors — typically spouses and children — will receive two sets of benefits: one from the occupational fund and another from the NPF.
“This is one of the strongest protections in the reform,” Nkabinde says. “Instead of families losing out, they gain greater security.”
Public Consultation and Safeguards
Another criticism is that the reform is being rushed. In reality, Parliament has opened 30 days of public consultation where individuals, unions, businesses, and civil society can submit views.
The Bill is also aligned with Section 195 of the Constitution, which guarantees pension rights. “All relevant legislation was reviewed to ensure no member is made worse off,” Nkabinde explains. Clause 107 of the Bill even explicitly states that the NPF must coexist with occupational funds like PSPF.
A Truly National Fund
Clause 3 of the Bill makes the fund universal, covering everyone from government employees to informal traders. “If some are excluded, it’s not national,” Nkabinde notes.
Pooling contributions across a small national population ensures a stronger fund, reduces poverty in old age, and creates a fairer system for all.
The Bigger Picture
At its heart, the National Pension Fund is not just about technical reforms or actuarial tables. It is about dignity, equality, and social protection.
• It ensures civil servants and all emaSwati retire with more income security.
• It extends coverage to vulnerable groups like informal workers.
• It strengthens, not weakens, existing occupational funds.
• It aligns Eswatini with global standards of social protection.
“This is a good move for workers of the Kingdom of Eswatini,” concludes Nkabinde. “It is not about taking away. It is about building a stronger, fairer future.”
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