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New pension scheme on the drawing board
2006-07-09 09:42:11
By Simon Kivamwo
The Local Authorities Provident Fund (LAPF) will start to offer pension benefits to its members as soon as the Government approves a new LAPF Act that shall convert the Fund from a Provident to a Pension Fund.
Speaking at the Dar es Salaam International Trade Fair taking place at the Mwalimu Julius Nyerere grounds in the City yesterday, the LAPF Public Relations Manager, Zacharia Machoke, said the efforts were at a higher Government level waiting for blessings of law makers.
’’Once the new LAPF Act is passed the Fund will be able to offer pension scheme benefits that are internationally considered to be better than the current provident scheme benefits’’ he said.
In a provident scheme members are paid their benefits in a lump sum mode and their relationship with the Fund ends while in Pension scheme members receive lump some payments as well as monthly payments until they die.
Machoke said that LAPF is currently making preparations by implementing various transformations within the Fund that shall enable the Fund to make a smooth conversion from a Provident to a Pension scheme.
’’We are currently making the necessary investments in the human resources, information and communication technology, various operational policies and guidelines, member services, capacity building and in public education as part of the preparations for the expected changes’’ he said.
He said that the Fund has also already opened five zone offices in the country.
He named them as the Northern Zone office based in Arusha, The Southern Highlands Office in Iringa, the Lake Zone Office in Mwanza, the Central Zone office in Dodoma and the Eastern Zone office in Dar es Salaam.
Machoke said that the Fund will also add new benefits on top of retirement, withdrawal and survivor benefits that are currently being offered.
The new benefits that will be offered as LAPF grows stronger include disability benefits and loans to members.
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