Pensions are terminal benefits paid to employees on compulsory retirement, death, invalidity, retrenchment, abolition of services or retirement of public interest. Act No.9 of 2006 0f the Local Authority Pension Fund stipulates among others, condition one must meet in order to qualify for payment of benefit.
Retirement pension is payable to individual members of the fund who reach the age of 55 years on voluntary basis or 60 years on compulsory retirement and have made minimum of 180 monthly contributions to the fund. LAPF will only process retirement benefits for members who apply and notification must be submitted to the fund six month before the date of retirement.
Types of Retirement Benefits.
- Monthly pension
- Lump sum amount
Lump sum amount retirement benefits
The amount of the pension will depend on the formula. The formula applied for payment of pension is based on the computation factor 1/540 which is the annual rate of one five hundred and fortieth of his pensionable emoluments for each complete month of pensionable services.
Payment of Monthly Pension
The monthly pension of retiree is paid direct to member’s bank account every month.
Document to support claim
- Dully filled form LAPF/BEN1
- Letter of notification of retirement from employer
- Letter of first appointment on permanent and pensionable terms
- Form LAPF/REG.4 (membership card)
- Last salary slip
- Bank identity card
- One passport size photo
Duration of Pension
Pension benefits are payable to qualifying members for the whole period of his lifetime after his retirement the payment ceases only when a member dies.
Monthly Pension when a member dies
Upon death of a retiree pensioner, the fund will stop the monthly pension.
Merits of LAPF Membership
Upon reaching retirement age, the employee will have to retire from work which was a major source of income .The advantage which such a person receives is assurance of continued income from LAPF. This payment will assist the retired person for the rest of his life.
The monthly pension shall be suspended upon re employment.