- January 26, 2019
- Posted by: kalaluka
- Category: news
4000 Retires Paid Benefits in 2018
The Local Authorities Superannuation Fund (LASF)disbursed at total of K67.80 million as at December 31, 2018, to its various beneficiaries. This translated into K54.50 million as lumpsum payments and K13.33 in annuities.
A total of 1,342 retirees received lump sum retirement benefits payment either in full or partly paid while 2,633pensioners were paid annuities. The Fund owed K373.2 million in lump sum retirement benefits to 2,973 retirees and K97 million was owed to 10,000 pensioners in form of annuities.
In this vein, Government agreed to disburse K401 million in 2016 to LASF for the Fund to settle the benefits arrears it owed to its retirees. Part of this money was released in April 2017 in the sum of K150 million which was paid out to almost all LASF retirees countrywide. Currently the LASF is expecting to receive the K251 million which remained as a balance from the promised K401 million. When this money comes into the Fund’s coffers, it will immediately be disbursed to all LASF beneficiaries countrywide.
Internal resources from pension contributions and other investment income will continue to supplement Government funding.
In the short term, the strategy is to clear all pension liabilities owed to members.
Salary-backed Loan Scheme
LASF launched the salary-backed loan scheme for its members in Lusaka Water and Sewerage Company and ZESCO Limited as a pilot investment instrument in September 2018. The Fund has recorded an overwhelming response from Lusaka Water and Sewerage Company and ZESCO employees in accessing the loan facility. The investments initiative is poised to continue operating on a revolving fund basis from the monthly repayments. Members can obtain loans to a maximum of K100,000.00 repayable in a period of upto 24 months at competitive rates.
This investments will be spread to other members in Councils going forward after assessing the performance of the salary backed loans from the two employers.
LASF is planning to restructure the various pieces of land acquired through Land-Debt swaps with councils across the country in order to add value via public private partnership consortium. The investment opportunity is to rollout investments in infrastructure development outside the line of rail.
This is a long term measure aimed at boosting the investments income for the benefit of the members, job creation and economic development. In 2018, the LASF Board reviewed and approved the Investments Policy which brought in infrastructure development as a specific asset class on the Fund’s investment portfolio.
The Fund is also in the process of developing a roadmap for the engagement of a consultant to determine best use option and obtain maximum value for the various investment properties under its investments portfolio.