The Local Authorities Superannuation Fund (LASF) scheme is called a "defined benefit scheme", where all benefits payable to LASF members or their survivors are based on a definite formula prescribed by the LASF Act.

The benefits offered by LASF are derived from the following categories of employment termination:

1) Dismissal,Discharge or Resignation
2) Death Benefits
3) Retirement Due to Retrenchment
4) Retirement Due to Ill Health
5) Retirement Due to Age

From the above six categories, only 3 - 5 attract "full retirement or pension benefits" per se, whilst categories 1, 2 & 6 attract what are called "other benefits". Full retirement/pension benefits are payable to individual members who meet any of the condititons laid out below:

· Individual members who have attained the retirement age of 55 and completed ten years of service or more;

· Individual members retired on medical grounds after serving ten years, provided that they were initially admitted to the Fund in a good state of health and that bad health was not brought on by the individual member's own fault; and

· Individual members retired after having completed at least ten years of service and their employment is terminated through no fault of their own, such as through staff reductions or abolition of office or post (retrenchment) in order to facilitate improvement in the efficiency of the organisation;

Accordin to the Act, a retirement/pension benefit means an annual sum payable out of the Fund during the lifetime of a member (this sum is known as annuity) at the rate of one hundred and sixtieth of the retiring pensionable emoluments of the member for each comleted month of his continuous service, of which either one-third or two-thirds may, at the option of the member, be commuted at the date of his retirement for an appropriate lump sum.

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Benefit Formula

The figure arrived at from the above formula is known as the Gross Annuity. Members are able to commute either 1/3 or 2/3 of their Gross Annuity for lump sum payment upon retirement and the remainder is paid as a pension for life on a monthly basis.

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Pension

In cases where the member who is receiving the monthly pension dies, the surviving spouse will continue to receive the pension. If the member who is receiving the monthly pension dies within six years of his retirement, the Fund will pay to the survivors the monthly pension for the period remaining before the sixth year.

The amounts of benefits payable to a member are affected by the factors of age, length of service as a member of the Fund and the salary at the time of employment termination.

The amounts of benefits payable to a member are affected by the factors of age, length of service as a member of the Fund and the salary at the time of employment termination.

It is possible that one worked for ten years but was only a member of the Fund for nine years 9i.e. the employer started remitting contributions two years later). Example: Mr Abambo joined Chadiza District Council on 23 March 1990, but the council only started remitting contributions in March 1992. The Fund will record the date of entry as 1st March 1992. Assuming he retired in March 2001, the Fund will record that Mr Abambo only worked for nine years and not ten, in which case the benefits payable will be calculated on the basis ofnine years of membership.

In addition to retirement benefits, the Fund also provides other benefits as follows:

(A) A refund of own contributions for a member who leaves after completing less than seven years continuous service plus 2% of the said amount for each comlpete year by which continuous service exceeds 3 years;

(B) A refund of twice a member's contributions plus a compound interest of 4% per annum for a member who has had 7 years of service or more;

(C) A refund of member's own contributions if dismissed from service;

(D) A widow/widower's lump sum payment equal to 1/4 of the retiring pensionable earnings of the member who dies in service plus a pension until her death or re-marriage or, a lump sum equal to 10% of the deceased membr's retiring pensionable emoluments from the date of his death up to the date he/she would have attained pensionable age;

(E) Children's benefits equal to :-

· 75% of the annuity payable to the widow if there are 3 or more children;

· 50% of the annuity payable to the widow if there are 2 children; and

· 25% of the annuity if there is only one child.

N.B. the maximum payment that can be made for children's benefits is 75% of the annuity payable, i.e. for 3 children only. if the widow has more than three children, the Fund takes no responsibility for the additional children.

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