On May 23, News Diggers! published a story in which some Indo Zambia Bank employees, through News Diggers! whistle-blower platform, also complained that the bank had no in-house pension scheme alleging that when one dies, their children don’t get anything.
But in a letter dated May 29, 2018, Indo Zambia Bank explained that housing allowances were included in the employees’ monthly salaries.
“Through the process of collective bargaining which culminated into the collective agreement dated 23rd May 1997, the unionized employee’s housing allowance was by clause 15 thereof merged with the said employees’ salaries. The correct position therefore is that the unionized employees’ monthly salary does in fact include housing pay. Coupled with the merger of housing allowance and salaries our client has in place a policy which all permanent employees are entitled to housing loans at concessionary rates,” read the letter.
“An in-house Pension Scheme is provided for by clause 27 of the subsisting collective agreement for the purpose of administering employee’s pension/terminal benefits.”
Indo Zambia Bank also outlined how it allotted terminal benefits to its employees.
“Early retirement-By clause 32 an employee who served for a period of not less than 10 years, qualifies for early retirement and is entitled to encasement of outstanding leave pay. Normal Retirement – By clause 32 an employee who has served for a period of not less than 20 years or upon reaching 55 years may proceed on normal retirement and is entitled to benefits calculated at 4 months basic salary for each completed year of active service. Retirement on medical grounds – By clause 33 an employee who has retired on medical grounds is entitled to 4 months basic salary for each year served,” read the letter.
“Death in service – By clause 44 in the event of death of a unionized employee the next of kin is entitled to the following; i) Group Life Assurance (GLA) policy paid in lump sum by an Insurance Company, ii) Balance of leave days, iii) Both employer and employee contribution towards internal pension scheme (if any), iv) Terminal benefits at 4 months salary for each year served in respect of each year served for more than 15 years, v) The GLA above extends to payment of funeral expenses to the limit of K10,000 per insured employee and a commuter benefit of K10,000 in the event of death in a road traffic accident in the course of work.”