LAPFUND: Securing county governments employees' retirement
Established in 1960, LAPFUND is one of the oldest retirement benefits schemes in Kenya.
It offers social protection through its various products.
LAPFUND is a Defined Contribution Scheme registered and regulated by the Retirement Benefits Act of 1997 and Subsequent Regulations.
It is a State Corporation established in 1960 by an Act of Parliament— Cap 272, Laws of Kenya. It operates in accordance with the County Governments Act 2012 (Section 132).
LAPFUND caters for the retirement needs of all employees of County Governments and Water Companies.
A member contributes 12 per cent while the Sponsor contributes 15 per cent of the Member’s pensionable emoluments.
Currently, LAPFUND enjoys a membership of over 45,000 members drawn from all County Governments and associated organisations.
Lapfund’s investments are held in various asset classes as outlined and regulated by the Retirement Benefits Authority (RBA).
These are government securities, equities and deposits, and property.
LAPFUND is exploring other investment diversification avenues.
LAPFUND operates as a parastatal under the National Treasury; regulated by RBA; audited by the Kenya National Audit Office (KENAO); and supervised by the Inspectorate of State Corporations.
Partnering with County Governments in providing affordable housing:
LAPFUND Gardens
LAPFUND has constructed a gated development comprising 131 maisonettes of three types.
The development has a commercial centre, a nursery school and a borehole.
It is secured with a stone boundary wall topped with electric fencing.
Additionally, surveillance cameras are installed for enhanced security.
LAPFUND Gardens is located 1.3 kilometres off Mombasa Road, 3km past the Mombasa-Namanga Road Interchange, at the periphery of Mavoko Township, Machakos County.
The main water supply is from Mavoko Council.
This is supplemented by water from a 180-metre deep borehole within the property.
The borehole water is filtered through a reverse osmosis plant to soften it up.
Main electricity is connected to the property. A 25 KVA diesel standby generator is installed adjacent to the borehole to support the water reticulation system in the event of mains power failure.
CCTV security cameras controlled from the gate house security office have been installed.
Solar water heating panels are provided to each of the maisonette.
The estate roads are paved in concrete blocks.
This is line with big four Agenda of the government. In furtherance of this agenda, LAPFUND will develop low cost houses in various counties.
Serving the communities through CSR
Corporate social responsibility is at the core of LAPFUND’s activities.
The fund undertakes its operations in a socially and environmentally responsible manner.
The fund donates to different community-based activities. Key areas of focus include:
Education: LAPFUND supports learning institutions. Provision of sanitary towels and desks being among them.
Hunger, Poverty, Malnutrition and Health: LAPFUNDs has supported children and elderly homes by supplying food stuffs and medical supplies. This is done in line with LAPFUNDs CSR policy.
LAPFUND PRODUCTS
Retirement Benefits: Members are eligible for this benefit when they attain the mandatory retirement age of 60 years, or early retirement age of 50 years. Members can choose between two modes of payment
Lump sum benefit: receive one-off payment equivalent to the total fund value in the account.
Income drawdown: a member may select a specific regular amount or a percentage of the investment fund value in his/her account payable monthly, quarterly, semiannually or annually.
Withdrawal Benefit: This benefit t applies to a member who leaves service of the sponsor through either resignation or dismissal before attaining the statutory retirement age.
Here, a member is entitled to all his/her contributions and interest accrued; and 50% of employer’s contribution and interest accrued. The deferred benefit (the remaining 50% employer benefit) continues to earn interest until the member attains statutory age.
Invalidity Benefit: A member who is certified to be permanently incapable of working because of physical or mental disability before attaining the retirement age is entitled to payment of his/ her accumulated benefits in full.
Emigration Benefit: A member who is leaving the country without intention of returning is entitled to payment of all his/her accumulated benefits in full.
Death Benefit/Survivor’s: On death of a member, the appointed beneficiaries receive full payment of the member’s total benefit equivalent to the total fund value in his/her account.
Consisting of member contribution, employer contribution and interest acquired.
Funeral Grant: A benefit of KES 100,000 is paid by LAPFUND to the bereaved family upon death of a member.
Pension Backed Mortgage: Members can use their accumulated benefits (up to 60%) as collateral to secure a mortgage loan to own a home while at the same time saving towards a secured retirement.
Group Life Assurance Cover: It is a benefit designed to protect your family in case of members’ death.
It comes with a rider in case of these eventualities: total disability and critical illness cover.
Gratuity: This is a lump sum payment made by the employer/ county government to employee based on duration of their total service. LAPFUND allows for conversion of gratuity into a provident fund.
LAPFUND Amal: The 1st Shari’ah compliant product in the region offering retirement benefits services in accordance to Shari’ah principles and the RBA Act.
Please get in touch: Head Office 8th Floor, JKUAT Towers, Kenyatta Avenue, Nairobi. T: +254 709805000 E: [email protected]. Website: www.lapfund.or.ke.
