LAPF to plough in 264bn/- in new ventures including Saccos lending

Local Authority Pension Fund (LAPF)

The Local Authority Pension Fund (LAPF) has spent over 429m/- out of 3bn/- in education loans from May last year to the end of February this year whereby over 500 students in high learning institutions recived sponsorships.

 

In this financial year, LAPF plans to invest over 264bn/- in various areas, including treasury bond, bank deposits, real estate purchases, equity market, corporate loans and Sacoss loans.

 

Speaking in an interview with ‘The Guardian’ yesterday in Dar es Salaam, LAPF Marketing and Communications Manager James Mlowe said education loans have been proceeding well as more students send in requests to zone offices allocated all over the country every day.

 

“This programme was officially launched in September last year with the aim of helping our members who want to further their education but were lacking sponsorship. We ask them to come and borrow loans from us since we have over 2bn/- still pending,” he said. 

 

According to LAPF, education loans are aimed at facilitating members so they can pay fees for higher education.  He said after the fund approves the requests the money is transferred directly to the university or college where they student is studying.

 

He said members who want education loan should send their applications through post offices, adding that if the applicant meets all the requirements they will have the loan issued in only18 days.

 

In another development, the number of fund members has increased from 127,500 in 2014 to 132,000 this year and that it hopes to get more members after the government has taken on board 35,000 new teachers.

 

He said every month the fund pays a total of 1.18bn/- to over 7500 pensioners, adding that in 2014; it managed to pay maternity benefit amounting to 950m/- to 1200 members.

 

According to Mlowe, apart from helping members to provide quality and better services the fund also has became a centre of innovation in the creation of new products that assist other funds to operate in the country by copying from it.

 

For his part, the manager for the Eastern Zone, Yesaya Mwakifulefule called upon municipal councils to speed up the sending of report for staff who are about to retire so that funds for their benefits and pensions can be prepared.

 

He said LAPF pays benefits for retirees immediately, claiming that delays are only caused by municipal councils. “Despite the many challenges facing the fund, it has been doing well and it can stay for 100 years without collapse,” he said.