Get your benefits from LASF

All about the Local Authorities Superannuation Fund (LASF) and benefits, Labout Laws and the Local Authorities Superannuation Fund (LASF), Pensions and more on Mywage Zambia.

Pension Benefits provided by LASF

There are five benefits under the Local Authorities Superannuation Fund (LASF), namely: death benefits, retirement due to ill health, dismissal, discharge or resignation, retirement due to old age and retirement due to retrenchment.

Death benefits

Section 35 of the LASF Act states that a member who dies whilst in employment is entitled to benefits. If the member dies without leaving a will, the law demands that an administrator be appointed to receive and administer the deceased member’s estate, including benefits from the fund. In addition, if a member dies before being paid their benefits after resigning, being dismissed or retired, surviving relatives will be entitled to claim those benefits.

Retirement due to ill health

According to section 27 of the LASF Act, a member who becomes permanently incapable of efficiently discharging duties by reason of illness and is certified by at least two medical practitioners, may be retired on medical grounds. 

If such a member joined the fund in good health and had worked for at least 10 years, they shall be granted a retirement benefit. If they have worked for more than seven but less than 10 years, they shall receive a sum equal to twice the amount of contributions paid into the fund, together with the interest at the rate of 4 percent per annum. A member who was admitted with ill health, shall be granted the same benefits.

However, if such illness was occasioned by the member’s own default, a lump sum equal to the contributions paid into the fund, together with interest at the rate of 2 percent per year, shall be granted to a member who has worked for less than seven years. Seven years and above, will attract a lump sum equal to twice the amount of the contributions paid into the fund and interest at the rate of 4 percent per year.

Benefits after dismissal or resignation

A member who is dismissed by the employer as a result of grave misconduct, dishonesty or fraud, shall be paid a lump sum, equal to the contributions paid into the fund up to the point of employment termination.

Section 32 of the LASF Act stipulates that regardless of the number of years spent working, a dismissal case only attracts a refund of the contributions, without any interest. This also applies to members who are allowed to resign or retire in order to avoid such dismissal. Furthermore, any resignation tendered by a member during an inquiry into his/her conduct and before the result of such an inquiry is announced shall be deemed to be a resignation in order to avoid dismissal.

Retirement due to old age

A member only qualifies for retirement benefits under Section 26 of the LASF Act upon attainment of the pensionable age of 55 years, with at least ten years of continuous service. A member aged below 55 and who has served less than 10 years does not qualify for retirement benefits and will instead be deemed to have retired voluntarily (resigned) and shall receive benefits as provided under Section 33 of the Act.

Retirement due to retrenchment 

Under Section 28 of the LASF Act, a member’s employment can be discontinued through no fault of the employee. If the retrenched employee has had at least ten years of continuous service the member shall; be granted a retirement benefit and two-thirds of the retirement benefit payable to such a member may be commuted, at the date of the termination of employment, for a lump sum at the rate laid down for his/her age in the First Schedule of the Act.

How can the retrenched employee get their payment?

The retrenched employee can choose to be paid under the following conditions:

  • The retirement benefit can be paid annually until the date on which the retrenched person attains the retirement age. In the event of death, prior to the date of attaining the pension age, the widow and children shall be entitled to the benefits calculated in accordance with the provisions that apply to death cases.
  • A lump sum equal to the amount of the member’s contributions plus the contributions of the employer, together with 4 percent interest, compounded annually.
  • One-third of the retirement benefit payable to be commuted at a rate laid down for his/her age at the time of retrenchment as contained in the third schedule of the Act.

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