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KEFRI Pension Scheme is among the few that has sustainably remitted staff contribution to Retirement Benefit Authority (RBA) despite the COVID-19 pandemic, which has negatively affected other pensioners both in private and public sectors.
The Chairman, KEFRI Board of Directors Dr. Sammy Letema while delivering the key note during the Defined Contribution Retirement Benefit Scheme Annual General Meeting held at the Auditorium on 8th October 2020, also urged staff to embrace Additional Voluntary Contribution (AVC) to improve their pension scheme.
“KEFRI Pension performance has been steady with contribution being remitted on time and Ksh. 224 million paid to staff who exited service in the fiscal year that ended June 2020,” said Dr. Letema.
The Chairman further stated his Board is focused to ensure smooth transition of staff from public service to retirement, implementation of succession plan, the proposed Post-Retirement Medical Fund, and investment in modern systems to strengthen efficiency of the secretariat. Dr. Letema also encouraged the new employees to start saving now for tomorrow, noting that remittance of contributions ought to be guarded jealously.
The Chairman Board of Trustee, Mr. Paul Tuwei in his statement reported that despite ravages of COVID-19 pandemic, the scheme assets as per the year under review was KES 279 billion compared to KES 264 billion last year, an increase attributed to additional voluntary contributions (AVC). “Despite membership drop to 759 from 810 last year, the Scheme recorded a net investment income of KES 212 million in a similar period and a remittance of a total KES 191 million being both the employee and the employer’s contributions,” said Tuwei.
In addition he informed staff that the thirteen-year Strategic Plan (2017-2030) enacted in 2017 was at the end of stabilization phase, however the high staff retiring may have a financial implication in future.
Mr. Tuwei whose term in office is ending advised staff to embrace additional voluntary contributions (AVC) to strengthen the scheme. He also advised staff against using lump sum pension proceeds for development rather than engaging in ventures that have sustainable returns. The advice was informed from an analysis that was carried out pending incorporation into pension strategic plan.
The AGM was attended by Service Providers; Scheme Administrators (Minet Kenya Financial Services), Fund Managers, (Sanlam Investment East Africa), Scheme Custodians (Standard Chartered Bank), Independent Auditor (Kamau and company Certified Public Accountants Kenya) and Bankers, Absa Bank formerly Barclays Bank, Retirement Benefits Authority-(RBA) the Regulator and KEFRI Board of Trustees.