Frequently Asked Questions
1. What is LAPFUND in full?
Local Authorities Provident Fund
4. How does my remitted Gratuity earn investment income/return?
7. Can the statutory deductions for the county government or assembly staff be adjusted from 12% to a rate that is higher or lower?
2. How do you tax the gratuity?
- One of the benefits of Gratuity conversion is to enjoy the various tax relief.
- The Gratuity will be taxed on a preferential rate for retirement benefits as opposed to the flat 30%.
5. What was the percentage rate of return for last 5 years?
8. In case of death, resignation or dismissal what happens to my gratuity?
3. Why should the assembly remit the Gratuity to LAPFUND??
- Members gain from the investment income over time. Members will receive annual statements of accounts
- County assembly gains from LAPFUND excellent track record in administration of retirement benefits, including prompt payment of benefits
- The responsibility of managing the county assembly gratuity fund will be passed to LAPFUND
- The County Assembly projects the image of a caring employer by ensuring that MCAs enjoy maximum benefits at the expiry of their term
6. Can I increase or decrease my voluntary contributions?
9. What happens if the assembly does not remit the gratuity on time?
10. Why is it important for the County Assembly Clerk or the County Secretary to clear MCA or Executive member during exit respectively (Voluntary)?
- It is a requirement of LAPFUND procedure that a member who is attached to the employer be cleared /verified while accessing retirement benefits.
- LAPFUND is an occupational scheme where members are attached to Employers.
- An abundance of caution to ensure that the benefits are paid to the correct member.
13. Will my Voluntary and Gratuity be subjected to double taxation?
11. Why is it important for the County Assembly Clerk or the County Secretary to clear MCA or Executive member during exit respectively (Gratuity)?
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-This is because the employer is remitting on behalf of the member. It is a direct benefit from the employer.
-Abundance of Caution
14. If I get money from other sources, can I save it with LAPFUND and will it earn investment income?
12. When is Gratuity Payable?
- This is payable at the completion of term, resignation, dismissal or death.
Membership
Vision & Mission
Vision: The preferred savings and retirement benefits provider.
Mission: To receive, prudently invest and manage members’ savings for prompt payment of benefits for secured retirement.