ZMCA: National Pension Scheme Authority Chama Actuarial Formula Must Be Prorated

• The Zambia Court of Appeal affirmed a Deputy Registrar's resolution of an actuarial formula dispute on October 21, 2026.
• The ruling in *National Pension Scheme Authority v Richard Chama* clarified that a Trust Deed formula must be prorated to an individual's termination age.
• The court also established that claims for a refund of actuary fees require concrete proof to be granted.
• This decision, Appeal No. 46/2024, provides important guidance for pension scheme administration and legal practitioners in Zambia.

The court unequivocally stated that no refund of actuary fees would be granted without concrete proof.

The Zambia Court of Appeal recently issued a significant decision in the case of *National Pension Scheme Authority and Ors v Richard Chama and Ors*, identified as Appeal No. 46/2024, with the citation [2026] ZMCA 160. Delivered on October 21, 2026, this ruling addressed a critical actuarial formula dispute, affirming the Deputy Registrar's earlier resolution of the matter. The core of the dispute centered on the correct application of a pension scheme's actuarial formula, a complex calculation fundamental to determining member benefits.

The appellate court's decision specifically upheld the principle that the relevant Trust Deed formula must be prorated to an individual's termination age. This clarification provides essential guidance for the calculation of pension benefits, particularly in scenarios where a scheme member's employment concludes prior to their anticipated retirement. The ruling underscores the importance of precise adherence to the governing documents of pension schemes when determining financial entitlements.

This judgment from the Zambia Court of Appeal offers crucial clarity regarding the interpretation and application of pension scheme Trust Deeds, especially concerning the National Pension Scheme Authority Chama actuarial formula. The requirement that the Trust Deed formula be prorated to the termination age is a key directive for all parties involved in pension administration and disputes. This ensures that benefit calculations accurately reflect the period of contribution and employment, preventing potential overpayments or underpayments that could arise from misapplication of the formula.

For legal professionals advising on Zambian pension schemes, this ruling establishes a firm precedent. It emphasizes that the specific terms outlined within a scheme's Trust Deed are paramount and must be applied with meticulous attention to detail, particularly when calculating benefits for members who do not reach the standard retirement age. The decision reinforces the need for actuarial calculations to align precisely with the foundational legal instruments governing pension funds.

Beyond the actuarial formula, the Zambia Court of Appeal also addressed claims for the refund of actuary fees within the *National Pension Scheme Authority v Richard Chama* case. The court unequivocally stated that no refund of actuary fees would be granted without concrete proof. This aspect of the ruling sets a clear evidentiary standard for such claims, indicating that mere assertions or unsubstantiated requests for fee reimbursements will not suffice.

This directive is highly relevant for legal practitioners and pension scheme administrators, as it mandates a rigorous approach to financial claims. Any party seeking a refund for actuary fees must present verifiable evidence to support their claim, thereby establishing a precedent for robust evidentiary requirements in similar financial disputes within the pension sector. This reinforces the principle that financial claims must be backed by tangible documentation or other forms of verifiable proof.

The Zambia Court of Appeal's decision in Appeal No. 46/2024, [2026] ZMCA 160, holds significant implications for the management and legal oversight of pension schemes across Zambia. By affirming the correct application of the Trust Deed formula, specifically its proration to termination age, the court has provided a definitive guide for actuarial calculations in the context of the National Pension Scheme Authority Chama actuarial formula dispute. This clarity is vital for ensuring the financial stability and equitable distribution of benefits within pension funds.

Furthermore, the ruling on actuary fees refund proof underscores the judiciary's expectation for high standards of evidence in financial matters pertaining to pension schemes. This dual clarification—on both actuarial methodology and evidentiary requirements—will undoubtedly influence how future Zambia Court of Appeal actuarial dispute cases are handled and how pension scheme administrators manage their operations and financial claims. It serves as a critical reference point for all stakeholders involved in the Zambian pension landscape.

Lawyers advising on Zambian pension schemes or involved in disputes concerning actuarial calculations should note this ruling clarifies the proper application of Trust Deed formulas, specifically their proration to termination age. Furthermore, it establishes that claims for refunds of actuary fees require concrete proof, setting a precedent for evidentiary standards in such cases.

Source: Original reporting via Zambia Court of Appeal