BY MBONGENI NDLELA

MBABANE – The Kingdom of Eswatini stands at a critical crossroads.

Parliament is currently debating the Eswatini National Pension Bill 2025, which seeks to convert the Eswatini National Provident Fund (ENPF) into a universal National Pension Fund (NPF). The reform has ignited a heated national debate, with two powerful parastatals, the Public Service Pensions Fund (PSPF) and the ENPF, presenting sharply contrasting positions.

On one hand, the ENPF argues that the proposed legislation is a bold step toward inclusivity and dignity for all emaSwati, including civil servants. On the other, the PSPF warns that the Bill, in its current form, risks undermining the hard-earned pensions of government employees and destabilizing the country’s retirement system.

This clash raises fundamental questions: Should Eswatini embrace a universal pension system, or should civil servants remain under their exclusive scheme? And most importantly, how can the reforms be implemented without jeopardizing the future security of workers?

PSPF’s concerns: Protecting Civil Servants’ Rights

Masotja Vilakati, CEO of the PSPF, has been vocal about his concerns. Speaking to editors and the media, he emphasized that “civil servants must not be made worse off” under the new system. his primary arguments center around legal protection, financial sustainability, and the risk of destabilizing the PSPF.

Exclusion and sustainability

Vilakati reminded the nation that civil servants were deliberately excluded from the ENPF in 1974 and have since been covered under separate legislation. Including them now, without new government funds, would reduce state contributions to the PSPF. This, he argues, could force benefit reductions, a scenario that is unconstitutional under Section 195 of Eswatini’s Constitution, which guarantees pension rights.

Legal and financial risks

According to the PSPF, forcing civil servants into two statutory funds may create duplication, administrative inefficiency, and legal conflicts. For younger members, who contribute longer without claiming, reduced contributions could weaken long-term fund sustainability. The specter of higher costs and lower retirement packages looms large in the PSPF’s warnings.

Call for amendments

Vilakati has urged Parliament to amend critical clauses, including 3, 69, and 107, to remove ambiguities. He also criticized the lack of consultation with unions such as TUCOSWA, stressing that reforms must follow proper negotiation processes. For him, pension reform is welcome, but not at the expense of civil servants’ dignity and security.

ENPF’s Position: A Stronger, Fairer Future

On the other side, Miccah Nkabinde, General Manager Operations at ENPF, insists that the reform is not about weakening existing pensions but about “strengthening retirement security” for all workers.

Two Layers of Protection

According to Nkabinde, the new system does not replace occupational funds like PSPF but complements them. Civil servants would, in fact, benefit from two pensions: one from PSPF and another from the NPF. Survivors, such as spouses and children, would receive benefits from both funds.

“This is about complementarity, not competition,” he explains. Far from diminishing benefits, the system introduces an extra layer of security, particularly for those in vulnerable sectors like informal work and seasonal employment.

Addressing Myths

Critics warn of deficits, the end of lump-sum payouts, and the threat of “double dipping.” Nkabinde counters these fears with numbers. Contributions to the NPF are capped at 10% of salary up to a ceiling of E4 000. For example, on a salary of E10 000, only E400 goes to NPF, while the bulk remains with PSPF. Thus, no collapse or deficit occurs; instead, civil servants gain an additional pension on top of their occupational one.

As for lump sums, Nkabinde argues that while provident models left retirees vulnerable, the pension model ensures a lifetime income stream, prioritizing long-term dignity over short-term payouts. Clause 69, often cited as a threat to PSPF benefits, merely prevents duplicate claims within the same event and does not bar members from claiming from both PSPF and NPF.

Inclusivity and Dignity

Nkabinde emphasizes that for the system to be truly national, it must cover everyone, civil servants, informal traders, and self-employed citizens alike. Pooling contributions across the nation strengthens the overall fund, reduces poverty in old age, and aligns Eswatini with global standards of social protection.

The Bigger Picture: Reforming Pensions in Eswatini

The debate over the National Pension Fund reflects deeper issues: balancing inclusivity with sustainability, protecting existing benefits while expanding coverage, and harmonizing old systems with new realities.

On one hand, PSPF raises legitimate fears about constitutional protections, financial deficits, and the risk of undermining a well-functioning fund. On the other, ENPF offers a compelling vision of a stronger, more inclusive system that leaves no liSwati behind.

International experience suggests that both models can coexist. Many African countries operate parallel national and occupational schemes, with civil servants enjoying layered protection. The challenge for Eswatini is not whether reform should happen, but how it should be implemented.

Public consultation: A defining moment

Parliament has opened the floor for 30 days of public submissions on the Bill. This is a historic opportunity for citizens, unions, and civil society to shape the future of pensions in Eswatini.

What is clear is that pension reform is inevitable. Demographic changes, informal work, and economic realities demand a broader system. But reforms must be carefully designed to avoid destabilizing existing schemes and to guarantee that no worker is made worse off.

Conclusion: Finding Common Ground

Eswatini’s pension debate is not simply about numbers and clauses. It is about dignity, security, and fairness. The PSPF’s call for protection and ENPF’s vision of inclusivity are not mutually exclusive. With proper amendments, transparent dialogue, and strong safeguards, the National Pension Fund can be a landmark reform that strengthens retirement security for all Emaswati.

At stake is nothing less than the promise of a secure and dignified old age for every worker in the Kingdom. And that is a promise worth keeping.

(Courtesy Pics)