Retirement benefits due to Age

 

Before the LASF Act was amended, the pensionable age was 55 years. The LASF (Amendment) Act, No.8 of 2015 which came into effect on 14th August 2015 has revised the definition of pensionable age from 55 years to 60 years. Members joining the scheme after 14th August, 2015 will retire as follows:

(i)       On attaining the pensionable age of 60 years;

(ii)      On attaining the age of 55 years if, twelve months before attaining that age, the member notifies the contributing employer of the intention to retire at that age and the employer approves the retirement;

(iii)     At 65 years if, twelve months before attaining the pensionable age, the member notifies the contributing employer of the intention to retire at that age and the employer approves the retirement

(iv)     Members who joined the scheme before 14th August, 2015 can also elect to retire at 60 years.

Qualifying conditions

(i)       Where a member ceases employment with at least 10 years or 120 months contributing period; and

(ii)      Cause of ceasing employment is as a result of retirement as per (i), (ii) and (iii) above.

Mode of granting age benefit

(iii)     Commuted pension gratuity ( lump sum) at an option of 1/3 or 2/3,granted immediately on ceasing employment;

(iv)     The remainder is granted as pension (annuity) and paid for the rest of the member’s life.

(v)      Annuity (pension) is guaranteed for 6 years