Posted On: 26-03-2025

Competency in Retirement Pension Schemes

Effective pension fund management is crucial for retirees' financial security. A recent dispute in Kenya has exposed gaps in pension administration, raising concerns about accountability and fairness.

Over 1,500 retirees have accused a major pension fund of miscalculating benefits, leading to reduced lump sum payments. Some received as little as 40% of their expected amounts, leaving them financially strained. The Retirement Benefits Appeals Tribunal ruled in favor of the retirees, ordering recalculations and payments amounting to over Ksh 3 billion. However, the pension fund has delayed compliance, citing financial constraints.

Kenya’s High Court upheld the tribunal’s decision, emphasizing retirees' rights to full benefits. The court issued a seven-day ultimatum for the pension fund to comply or face legal and financial penalties, including asset seizures.

This case highlights the importance of:

• Accurate actuarial calculations to ensure fair payouts.
• Inflation adjustments to maintain purchasing power.
• Transparency and accountability to prevent disputes.
• Regulatory compliance to protect retirees' interests.

Conclusion.

This case serves as a critical lesson in accountability, with its outcome setting a precedent for Kenya’s pension sector. At Zurit Consulting, we specialize in retirement planning to help individuals and corporates prepare for a financially secure future. Whether you’re navigating pension regulations or looking for wealth-building strategies, our expert training sessions will equip you with:

 Smart investment options beyond pension savings

 Tax-efficient retirement strategies

 Customized pension planning tailored to your goals

Don't Wait Until It's Too Late! Secure your financial future today. Talk to us at Zurit Consulting for expert retirement planning! Join us for a wealth wave talk on 5th April, at All saints Cathedral, we shall discuss; How to use NSSF/PENSION to save on tax.