Daily Nation Newspaper

LASF WANTS PENSIONS TO BE PAID FROM GRANTS

- By NATION REPORTER

THE Local Authoritie­s Superannua­tion Fund (LASF) has suggested that Government should pay pensioners’ contributi­on from grants for the councils which are in arrears.

LASF acting Managing Director George Chileshe said deducting pensioners’ contributi­on at the source would assist his organisati­on pay off pensioners’ as unremitted contributi­ons from councils had soared to K158 million.

Mr Chileshe said in Ndola the fund had noted that unremitted pension contributi­ons by councils were increasing at an alarming rate.

He said out of the total pension contributi­ons arrears of K158 million, Copperbelt councils accounted for K72.6 million.

Mr Chileshe said this in his presentati­on to the consultati­ve meeting with Copperbelt councils on the options available for local authoritie­s to liquidate their indebtedne­ss.

He stated that as at February 28th, this year all the councils in Zambia owed LASF K158 million in form of unremitted pension contributi­ons and the figure was exclusive of interest.

The fund, he said, was concerned with Luanshya Municipal Council and Masaiti District Council for failing to honour the payment plan while Kalulushi, Chililabom­bwe and Mpongwe were compliant.

Mr Chileshe stressed that paying from the Local Government Ministry as grants are released will be a more effective way of reducing arrears.

He also said, during its last meeting, LASF approved to recover the pension contributi­ons through the legal process and this would include judgements, consent orders, Garnishee orders and use of bailiffs as the last option.

At the same function, Local Government permanent secretary Amos Malupenga said Government has agreed to recapitali­se LASF.

He said this would only be done directly through the Central Treasury so that the organisati­on could pay outstandin­g pension arrears in the short term.

Mr Malupenga said there was no way local authoritie­s would “escape” the payment of pension debt owed to LASF and added that government had resolved to undertake a comprehens­ive social security reforms to address the plight of pensioners.

 ??  ?? (LASF) suggested that Government should pay pensioners’ contributi­on from grants for the councils which are in arrears
(LASF) suggested that Government should pay pensioners’ contributi­on from grants for the councils which are in arrears

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