THE Pensions and Insurance Authority (PIA) has said investment income has decreased drastically due to low equity value, registrar Martin Libinga has said.
Investments decreased from KR 359 million in 2011 down to KR354 million last year, representing a decline of one per cent of the total investment income recorded in 2011.
The decrease in investment income is largely attributed to a declining fair value of equity in the year under review.
Mr Libinga said the overall gross return on assets in 2012, closed at 11 per cent as compared to 12 per cent in 2011.
He said contributions received by pension funds were usually invested in various sectors of the local economy.
Speaking in Lusaka, Mr Libinga said the pension funds received a total of KR706 million last year compared to KR479 recorded in 2011.
Mr Libinga also noted that pension funds recorded a 47 per cent increase and that of the KR 706 million received, only KR116 million was one-off actuarial deficit financing from sponsors of pension funds.
"This translates into a normal year-on-year increase in 2012 of 23 per cent," he said.
Total membership increased to 109,909 from 94,111 in the previous year representing a 16.8 per cent increase.
However, Mr Libinga said the overall gross return on assets in 2012 was at 11 per cent as compared to 12 per cent in 2011.