Contributions and Compliance

 

Contributions to the Fund

·       The LASF Scheme is a contributory Pension Scheme. This means that workers who are registered with the Fund are supposed to make monthly contributions through their employers in order to accrue rights that entitle them to benefits provided by LASF.

·       The contributions to be paid by a member shall be a first charge upon the salary payable to such a member and shall be deducted by the employer employing such a member from the payments of such salary.

·       Currently the Monthly contribution rate is pegged at 10% of the member or employees basic salary excluding allowances as Employee contribution. The employer is obliged to contribute 23% of a member’s basic salary as Employer contribution in any particular month.

Remittance of Contributions to the Fund

·       Every employer shall, before the 7th Day of every month  –

(a)      Certify to the Fund, through submission of schedules, the amount of contributions deducted from the members (employees) in the preceding month and remit the members contributions to the Fund accordingly.

(b)     Where the members’ contributions remain unpaid by the 7th day in any month, the Fund shall charge the employer concerned Interest on the amount unpaid at the rate of 4% per annum compound Interest.

·       In order for the Schedule to be certified as complete , the following details need to be clearly presented :

–        Name and Surname of the member

–        Date of Birth

–        Date of joining the Fund

–        Gender

–        Basic Salary

–        Proportion of 10% of member contribution

–        Proportion of 23% employer contribution

·       The Fund shall make available to its members , statements of their contributions to the Fund which will comprise the following :

–        Name of the member

–        Name of the Employer

–        NRC Number for the member

–        Date of joining the Fund

–        Tabulation of member’s contributions by year from the date of joining.

–        Total contributions to date

·       It is the responsibility of the member to check the correctness of the details on the member’s statement, including the contributions paid for accuracy.

·       In the event that there any errors on the statement, the member needs to inform the Fund immediately for such error to be investigated and corrected.