Retirement due to age is termination of employment at the age of 55 years, which is the mandatory pensionable age. By law, any pensionable employee who attains the age of 55 years in Zambia must retire.

Qualifying Conditions

A member 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 who is less than 55 years of age or has not served for at least ten years does not qualify for retirement benefits and will instead be deemed to have
retired voluntarily (resigned) and, therefore, receive benefits as provided for under Section 33 of the Act (See notes on Resignation).

Worked Example

Mr Chanda retired normally, at 55 years of age, in 2001. His particulars are as follows:

Date of Birth: 08 February 1946
Dateof Entry: 01 January1988
Dateof Retirement: 31 August2001
Length of Service: 164 months (13 years and 8 months)
Aat Reflrement 55 years, 7 months
Annual salary atétirement K1,260,000.00 Last Contribution
(10°Io of monthly salary): K10,500.00

Under subsection 1, the computation will be as follows:

Annuity = Annual salary x Length of service
660

= 1, 260, 000.00 x 164 = 313,090.91
660

Commutation of 1/3 gross annuity for lump sum

Gross Annuity                                                 = K313, 090.91
Less 1/3 Commuted                                        = K104, 363.64
Net Annuity                                                    = K 208,727.27
Lumpsum payable                                           = 1/3 Comm. (K104,363.64) x Comm. Factor1 (23.14)
= K2, 414, 974.63

Under subsection 2, the computation will be as follows:

Annuity = Annual salary x Length of service
660

= 2,833,368.00 x 126 = 313,090.91
660

Commutation of 2/3 gross annuity for lump sum

Gross Annuity                                                 = K313, 090.91
Less 1/3 Commuted                                        = K208, 727.27
Net Annuity                                                    = K 104,363.64
Lumpsum payable                                           = 2/3 Comm. (K208, 727.27) x Comm. Factor2 (23.14)
= K4, 829,949.03

Mr Chanda will be requested to choose whether to be paid under subsection 1 or subsection 2.
* If he elects to be paid under subsection 1, he would get a lump sum payment of K2,414,974.63 first,b and start drawing a pension of K208,727.27 per year, until death.
* If he elects to be paid under subsection 2, he would get a lump sum payment of K4,829,949.03 first, and start drawing a pension of K104,363.64 per year, until death.

Required documents
The employer is required to give notice to a member, six months prior to his retirement at the age of 55 years. Upon retirement, the member will be required to present the following documents to the Fund in order to access the benefits:
a) Introductory letter from the employer, signed çithr dthesignatories registered and recognized by the Fund
b) Officialretirementletterfromtheemployer
c) Certified copy of the member’s National Registratior Card (NRC) (The Fund relies
heavily on the NRC for proof of age)
d) LASF Forms S/1 - S/5, duly filled in and certified by both the employer and member

Note:
Commutation Factors are provided for in the Act to determine the benefits due to a member for a particular age.

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