MTRH Pensions Scheme
1. BACKGROUND INFORMATION
MTRH Staff Pension Scheme is desirous of providing first class retirement benefits and secure financial retirement to members and their dependants. Hence over the last 9 years the Trustees have worked tirelessly to steer the Scheme to greater heights of prosperity in all its undertakings. This excellent stewardship has seen it grow from a meager Kshs. 500,000 in 2003 to an admirable figure of Kshs. 1.2 billion as at 30th June 2012.
It was established with effect from 1st July 2000 as defined benefit scheme with a fund value of less than 50 million. The board of management later in 2005 together with membership made a decision to restructure the scheme from DB to DC. This change became operational in January 2006 with members contributing 6% and employer contribution of 14% of basic salary respectively. In line with Government guideline requiring sponsors to contribute twice the amount contributed by members, the member’s individual contribution was raised to 7% of the basic salary with effect from 1st July 2011.
The current active members as of 30th June 2012 stood at 3104.
The Mandatory Retirement age is 60 years while the retirement for people’ living with disabilities is 65 years. Voluntary early retirement age is 50years. The scheme expects the first batch of retirees in 2014 after effecting the change on retirement age with effect from 1st April 2009.The Trustees are consider putting in place strategies to take up annuities for the retirees.
3. BOARD OF TRUSTEES
The scheme fully complies with regulations and all requirements put in place by RBA regarding pension sector in Kenya. The constitution of the Board of Trustees consists of 8 members in accordance with the Scheme Trust Deed and Rules i.e. four sponsors nominated and four members elected Trustees whose term is 3 years renewable. To ensure proper governance, the Trustees as the top decision making body, meets on a quarterly basis to keep track on issues affecting the scheme.
The following are members of the Board of Trustees:
THE SPONSOR NOMINATED TRUSTEES:
- Dr. John Kibosia
- Mr. Agunda Ochanda
- Mr. Katwa Kigen
- Mr. Wilson Orege
THE MEMBER ELECTED TRUSTEES:
(1) Emilly Sitienei- Chairperson
(2) Jonathan Kipchoge
(3) Dickson Yego
(4) Selina Kogo
4. STRATEGIC PLAN
The Scheme management has embarked on development of five years strategic plan. This noble exercise started on 6th June 2012 and expected to operationalize by end of the year. Upon conclusion, it is envisaged that the document shall provide definite path that would propel faster growth in terms of diversification.
It must be emphasized that the development of the strategic plan is largely guided by the Schemes Trust Deed and Rules and the Retirement Benefits Act among other statutes. The bottom line is to ensure that members’ interest and that of the sponsor are well safeguarded.