The Trustees are required by law to issue out benefit statements to members at least once a year. Benefit statements are normally issued out just before the Annual General Meeting after the accounts have been audited and rate of return/ interest declared by the Trustees. However members are free to visit the Scheme’s offices at any other time during office hours and request for a print out of their benefit statements.
Members whose total contribution (employers and employees) is more than KShs 20,000 per month normally receive two statements titled ‘Registered’ and ‘Unregistered’. Registered statements show members’ accrued benefits in respect of monthly contributions of up to KShs 20,000.
Monthly contributions up to KShs 20,000 are not taxable but pension benefits accruing from the untaxed contributions are taxed at the stipulated rates upon retirement or withdrawal from the Scheme.
Monthly Pension contributions above KShs 20,000 are subject to tax, however the pension benefits accruing from such contributions are not taxed again.
Members should keenly study their statements and seek clarifications with the Secretariat on any issues they do not understand.
