Home

Procedure for Payment

 

Retirement Benefits

 

Members of staff are normally given a notice of retirement by the sponsor one year before retirement and a copy of the same sent to the Scheme. Prospective retirees are required to visit insurance companies offering annuities so that they can choose their preferred annuity provider for the 2/3rds of their benefit as per the existing rules.

 

Once an annuity provider has been chosen, prospective retirees are required to write a letter addressed to the Scheme Administrator requesting for payment of their dues and clearly stating their preferred annuity provider.

 

Members, whose annuities are less 50% of the minimum wage rate (currently KShs 4,802), have the option of requesting to be paid their entire 2/3rd.

 

Prospective pensioners are advised to complete the above process at least a month before their retirement dates so that their dues are prepared on time and payment is made one day after the retirement date as appropriate.

 

The Board normally grants prior approval for retirement cases to enable retirees to be paid their dues promptly on their due retirement dates.

 

Withdrawal Benefits

 

In order to access their dues members who leave university service for whatever reasons are expected write a letter addressed to the Scheme Administrator requesting for payment of such dues, or transfer of the dues to their individual pension scheme or a pension scheme of their new employer. They must also attach the letter from the University releasing them from service. (i.e. Letter of termination/ letter accepting their resignation).

 

Such requests are normally discussed by the Administration Committee in the quarterly meetings after which approval is sought from the Board of Trustees before disbursements are made appropriately.

 

Effective September 2010 a new regulation was introduced in the Retirement Benefits Industry during the budget Speech for the Financial Year 2010/11 read by the finance minister and provides as follows: -

 

  • A member who leaves service of the Sponsor after one year but prior to the early retirement date shall have two options:

 

Option 1: To take a refund of the member’s portion and not more than fifty percent (50%) of the sponsor’s portion, or

 

Option 2: To take a deferred pension benefit commencing on his normal retirement date for the amount represented by the member’s portion and the Sponsor’s portion.

 

  • Failure by a member to elect Option 1 within the period of one (1) year will cause Option 2 to apply.

 

Death Benefits

 

The ‘Death Lumpsum’ is normally distributed as per the nomination of beneficiary form, in the absence of which the Trustees are compelled to do the distribution. Such death benefits so distributed are then paid out to beneficiaries above 18 years. The portion of the benefits allocated to beneficiaries who are under 18 years is preserved in the Scheme until such beneficiaries reach 18 years. However the Scheme can pay school fees directly to schools of the beneficiaries below 18 years, upon request from a guardian or the surviving spouse who requests for assistance.

 

The ‘Fund Credit’ is normally transferred to an insurance company to purchase annuities (regular payments) to the surviving spouse, in the absence of which the amount is retained in the Scheme for the benefit of the surviving children/ beneficiaries. 

 

Before death benefits are processed and paid out surviving spouses/ beneficiaries are required to avail the following documents: -

 

  • A letter addressed to the Scheme Administrator requesting for benefits, including a list of all the surviving beneficiaries clearly indicating their relationship with the deceased member, their dates of birth and their current status i.e. school/ college and class/ course they are pursuing or employment status.
  • An original and copy of the death certificate.
  • Original and copy of marriage certificate and or affidavit.
  • Original and copies of birth certificates of beneficiaries.
  • An original and copy of National Identity Card/s of beneficiaries who are above 18 years.
  • Letter from the Chief of the Location of the deceased member.

 

Once the above information is received the death cases are discussed by the Administration Committee in the quarterly meetings before approval for payments is given by the Board of Trustees. Thereafter the dues are disbursed appropriately.