Retirement due to re-organisation

 

Qualifying condition

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

(ii)      The employment is discontinued through no fault of such member, as a result of reduction in staffing levels by his or her employer, or re-organisation or abolition of the member’s office.

Mode of granting Retrenchment benefit

Either:

(iii)     2/3 commuted Pension Gratuity (Lump sum) at the rate laid down for his or her age in the First Schedule of the Act, granted immediately on ceasing employment; and

(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

OR:

(vi)     2/3 commuted Pension Gratuity (Lump sum) at the rate laid down for his or her age in the Third Schedule of the Act, granted immediately on ceasing employment;

(vii)   A lump sum equal to the amount of member’s contributions plus employer’s contributions, together with 4% interest compounded annually; and

(viii)  The annuity (pension) is payable annually until the date on which the member attains the pensionable age and shall then cease.

(ix)     If the member dies before attaining pensionable age, LASF will start granting the widow and children’s pension, until the date upon which such member would have attained pensionable age and shall then cease.