LASF WANTS PENSIONS TO BE PAID FROM GRANTS
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.