Description

A member, who dies whist in employment, is entitled to benefits under section 35 of the LASF Act. 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 any benefits thereof from the Fund, on behalf of survivors. If the member has not yet been paid his/her bonafide survivors will be entitled to claim those benefits. It is however advisable that, members determine in advance (before their death), who should be the Administrator, in the unfortunate event of their demise, by executing a WILL to that effect.

Qualifying conditions

1. If a male member dies whist in service, his widow shall be granted a lump sum equal to one quarter of his retiring pensionable emoluments and an annuity equal to one-two thousandth (1/2000) of his retiring pensionable emoluments for each complete month of the period which is the sum of:
   1. His continuous service; and
   2. One-half of the period from the date of his death up to the date on which he would have attained the pension age had he lived

In addition, an annuity shall be granted in respect of his children equal to

1. Three quarters o the annuity payable to his widow for so long as there are three or more children; or
2. One – half of the annuity payable to his widow for so long as there are two more children; or

• One-quarter of the annuity payable to his widow for so long as there is one child.

Provided, however, that if a member’s widow so elects, she shall receive a benefit calculated in accordance with Section 35, sub-section of the Act or as reflected under b) hereunder.

(b) If a male member dies whist in the service of his employer and no annuity is payable under the above scenario (i.e under (a) above), or if a female member dies whist in the service of the lump sum equal to 10% of the deceased member’s retiring pensionable emoluments for each year of the period, reckoned in years, and complete months, form the date of his/her death up to the date on which the member would have attained the pension age had he/she lived.

(c) If a male or female member in receipt of an annuity dies within six years of the date of his retirement, the dependants of the deceased shall be granted a lump sum equal to the sum of the annuity payable in respect of the unexpired portion of the said period of six years.

Important notes:

Subject to the provisions of the Act:

1. An annuity granted to a widow shall cease upon her death;
2. An annuity granted to widow shall cease on her re-marriage or death and in such event any annuity granted in respect of the children of her deceased husband shall be doubled.
3. The annuity or lump sum payable in respect  of the children shall be paid to the mother on their behalf

Worked example

Mr. Tembo was an employee of Zesco Limited until his untimely death on 31^st January 2005. The rest of the particulars are as follows:

Date of Birth:                                                            1 January 1952

Date of  Entry:                                                          1 July 1980

Date of Death:                                                          31 January 2005

Length of service                                                     295 months (a)

Number of months to pension age:                  23 Months (b)

Reckonable service (a + b/2b:)                            307 months

Age at death:                                                            53 years 1 month

Retiring pensionable emoluments      =

Last contribution x 100 x 12

10

Annual salary                                              =            k17,810.87

………………………………………………………………………………………………

Benefits under Sub-section 1

Lump sum                                                    =

retiring pensionable emoluments

4

=17,810.87       =            K4,452.72

4

Widow’s Annuity  =

retiring pensionable emoluments x reckonable

 

=                                    R.P.E x (A + 1/2B)              =            K17,810.87 x 307

2000

=                                    K2,733.97

……………………………………………………………………………………………….

Benefits under Sub- Section 3

Retiring pensionable emoluments = K17,810.87

Complete years continuous service = 24  (x)

Period from date of death to retiring age

(years & complete months) = 1.92 (Y)

Benefit R.P.E x 10/100 x (x) = 17,810.87 x 10 x 24

100

=   K42,746.08

Plus R.P.E x 5/100 x (Y)      =   K17,810.87 x 1.92

100

Total lump sum                   =   K44,455.92

Required documents

Upon the death of a member, the appointed Administrator will be required to present the following documents to the Fund in order to access the benefits:

1. Introductory letter from the employer, signed by either of the signatories registered and recognized by the Fund
2. Certified copy of proof of death of member (Death or Burial Certificate)
3. Certified copy of the deceased member’s NRC
4. Certified copy of a Court Order of Appointment of Administrator
5. Certified copy of the Administrator’s NRC
6. LASF forms S/3-S/5.duly filled in and certified by the employer.

Important Note:

Upon presenting the required documents, the Administrator may be required to appear for interviews at the Fund and in the company of one or two other interested parties (e.g. the deceased’s widows/widower or other relatives) in order to ascertain the claimant’s genuineness and also confirm how the benefits would be distributed