A.Lump sum where annuity not payable
(i) Where a member ceases employment with less than 10 years or 120 months contributing period; and
(ii) Cause of ceasing employment may be age, ill health or retrenchment.
Mode of granting benefit
Granted as lump sum immediately on ceasing employment calculated in accordance with the number of years served.
B.Dismissal (Section 32)
Where a member ceases employment through summary dismissal or termination.
Mode of granting dismissal benefit
Granted a lump sum immediately on ceasing employment equal to employee’s own contributions.
C. Discharge and Resignation
Where a member’s service is terminated by his/her employer through discharge or the member resigns on his/her own accord.
Mode of granting discharge/resignation benefit
(i) A member who has had less than seven years continuous service shall be granted a Lump sum payment equal to own contributions with two percent interest in respect of each year by which his/her continuous service exceeds three years; or
(ii) A member who has had seven years or more continuous service shall be granted a lump sum payment equal to twice member’s own contributions with four percent interest per annum compounded annually.
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.
In addition, an annuity shall be granted in respect of his children equal to
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.
Subject to the provisions of the Act:
Mr. Tembo was an employee of Zesco Limited until his untimely death on 31st 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
Annual salary = k17,810.87
Benefits under Sub-section 1
Lump sum =
retiring pensionable emoluments
=17,810.87 = K4,452.72
Widow’s Annuity =
retiring pensionable emoluments x reckonable
= R.P.E x (A + 1/2B) = K17,810.87 x 307
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
Plus R.P.E x 5/100 x (Y) = K17,810.87 x 1.92
Total lump sum = K44,455.92
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:
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