Frequently Asked Questions
a) The legal notice was in respect of Preservation Rule and access to locked in benefits
b) Some members did not qualify by virtue of their young age, low salaries and few years of service
a) Rule 14 of TelPosta Provident Fund Rules provides that if a member by reason of promotion, transfer or other reason is transferred to a pensionable office and therefore becomes eligible for admittance into the TelPosta Pension Scheme, then the member shall forfeit all claim to benefits accrued in the Provident Fund in the form of his accumulated credit which shall be paid into the Scheme. The Member's provident Fund Service shall be taken into account as pensionable service for the purposes of the Scheme
b) All employees who were promoted from Provident Fund to Pensionable Status have letter stating that Your provident Fund Contributions for the period ending ….will not be refunded to you but the number of years during which you were a contributor will count for full pension
c) All affected members are encouraged once again to scrutinize their promotion letter for this item
a) The benefits are vested in the member
b) Deferred pensioners have the following rights:-
i. To inspect audited accounts and actuarial valuation reports
ii. To nominate/amend beneficiaries
iii. To be issued with annual membership benefits statement
iv. To attend Trustees Annual General Meetings
v. To be paid his deferred pension when it matures
vi. Appoint member nominated Trustees
a) At inception on 1st July 1999 The Trustees adopted a private sector approach and settled for 10 staff instead of 90 that had been proposed by KP&TC/TKL Staffing standards
b) The few administrative staff undertake all tasks pertaining to Pensions Administration, including Human Resources, Finance & Accounts, IT etc as well as property management, supervising sales, co-ordinating legal issues and supervising all service providers
c) Some pension Scheme in the Country with assets ranging between Kshs. 5 Billion and 8 Billion have staff in excess of 20
d) Had the Trustees decided to employ 90 staff the said figures per person per month is extremely low
e) To enable the Trustees succeed in their duties a number of Administrative staff have continued to work 7 days a week as well as late after office hours and therefore are overworked and underpaid in relation to their productivity
a) The Scheme thrives to answer all written correspondences to members
b) From 1st July 1999 the Trustees put in place a culture and systems which include at least the following:-
- Claims are processed expeditiously and benefits remitted to members accounts as specified by the member in the Leavers Claims Form
- Queries on the status of any claims are handled at the front office and are handled on a first received first processed basis
- Because of the massive number of members who applied for access to 50% benefits in the months of November 2010 and December 2010, the office intentionally decided to process the benefits and limited any phone calls queries
- After the members had been paid, the Scheme/Fund wrote to each giving them details of the payments
c) To minimize fraud cases each member had to personally visit Scheme offices to claim their own individual benefits. This also helped to cut down idle brokers who would want to take advantage of the members and charge them
a) Trustees appoint Service Providers and this is in accordance with the Trust Deed and Rules
b) The Board has always tendered for services whenever necessary, the latest being the Managing Agents, Residential houses.
c) Some Members have in the past attempted to canvass/front certain service providers to the Scheme, and they would want to be seen as acting as a leverage front in their appointments
d) The procurement requirements of the Board of Trustees are extremely limited
e) At inception on1st July 1999 Scheme Trustees decided that TelPosta Pension
Scheme shall be a corruption-free environment
f) To avoid conflict of interest the Trustees and Scheme Administration staff shall not participate as suppliers to the Scheme either directly or indirectly
g) Trustees and Administration staff shall not be involved in canvassing on behalf of or seeking inducements, personal favours from current or potential service providers
h) Service providers should be discouraged from canvassing and influencing individual Trustees. Such service providers if they have any issues to do with the Scheme should table their interests directly to the Trustees and formally
a) The affected members should write to the Scheme attaching copies of qualified Medical Practitioners Certificates indicating the Medical history Report
b) The Trustees upon receipt shall forward the request together with supporting documents to the Medical Board (Ministry of Health) for a medical opinion
c) If the Medical opinion is such that the member is sick such that he is unfit for service if he was still working with the employer the member's benefits shall be paid
a) Yes, if the pensioner is earning a Trivial Pension
b) Regulation 9 of Retirement Benefits (Occupation al Retirement Benefits
Schemes (Amendment) Regulations 2005 provides that:-
Eligible members can choose to be paid in a lump sum if the pension payable is Trivial
c) The Regulation, effective 8/6/2005 further provides that Trivial pension shall be the amount, from time to time determined by the Retirement Benefits Authority which shall not be than the minimum wage prescribed by the Minister for the time being responsible for matters relating to labour in which the benefits can become due
d) Regulation 7 of the Retirement Benefits (Occupational Retirement Benefits Schemes) (Amendment) Regulations, 2007, provides that with effect from
Trivial Pension shall be the amount, from time to time determined by Retirement Benefits Authority, which shall not be less than two-third (2/3) of the average of minimum wage prescribed by the Minister for the time being responsible for matters relating to labour in which the benefits can become due:-
- 8/6/2005 – 30/6/2005 = 4,196
- 1/7/2006 – 9/6/2010 = 7,398
- 10/6/2010 – 21/9/2011 = 4,802
- 22/9/2011 – to date = 5,398
a) TelPosta Pension Scheme Trustees have been using Telkom Kenya premises to hold Annual General Meetings so as to minimize costs and for convenience of members
b) Secondly, because TelPosta Pension Scheme have no branches, holding Annual General Meetings within Telkom Kenya compound has enabled the regional offices to assist with the arrangements
a) PF is the only unique identifier of members
b) A number of members may have similar names and even initials
c) The Trustees database of members is largely based on PF as the identifier
b) TelPosta Pension Scheme Assets are owned by the Trustees in Trust for the benefit of all members as per the provision of TelPosta Pension Scheme Trust Deed and Rules
b) Members have no direct role in deciding on investment classes. This is the responsibility of the Trustees who decide based on the advice of the Investment Managers
a) Under the Scheme Rules if a deferred member dies before commencement of pension, the deferred pension is payable to the beneficiaries of such a member for five (5) years beginning from the date of death.
b) In calculating the benefits payable to the beneficiary, the Scheme allows for revaluation of the deferred pension at the rate of 4% p.a. from 1/12/2007 to the date of member's death and also allows for a pension increase at the rate of 3% p.a. with effect from 1/7/2008 as per the terms of the amended Scheme
a) The Board is finalizing a Memorandum of Understanding with National Hospital Insurance Fund to enable willing pensioners to have the deductions made at source.
b) This is at an advance stage once finalized Members in receipt of monthly pension (upon request) will be deducted the requisite amounts
a) The Boards shall ensure that the image of the Trustees is not tainted by the selfish interest of a few.
b) The Scheme will adopt a policy that protects all members
a) As provided for in Regulation 2 of the Retirement Benefits (Occupational Retirement Benefits (Amendment) Regulations 2000 Trustees are expected to convene an annual general meeting to enable members raise any matters that relate to their Scheme.
b) The basic Agenda in Retirement Benefits Annual General Meetings are as stated in the Act and namely: -
- Opening Remarks
- Report on Recent Changes in Retirement Benefits Sector
- Presentation of Audited Accounts
- Reports on Investments
- Remuneration of Trustees
- Members; Questions and Answers
c) The object of Annual General Meeting is not for members to pass resolutions. The latter would be irrelevant since the Trustees have the responsibility for managing and administering the Scheme in accordance with the Retirement Benefits Act, Retirement Benefits Regulation (2000) and Telposta Pension Scheme Trust Deed and Rules.
d) Annual General Meetings for Schemes have no legal basis to pass resolutions since the latter have no force in law. The Scheme is managed and administered by Trustees who have to comply with TelPosta Pension Scheme Trust Deed and Rules as approved by Retirement Benefits Authority the Retirement Benefits Act and Retirement Benefits Regulation (2000)
e) A pension Scheme is run by a Board of Trustees and the Members have delegated all their responsibilities to the Trustees
f) Members to be informed and made aware that an Annual General Meeting for a Scheme is different from Annual General Meetings for such entities a SACCOs, Companies etc.
a) The Association is a voluntary organization, registered with relevant
Government institution that works harmoniously with the Board of Trustees
b) The Board of Trustees has not sanctioned any deductions from pensioners during pay days.
c) Any pensioner joining the Association does so at their own volition
a) The mandate of the Trustees is to appoint Service Providers
b) Retirement Benefits Regulation provides that the Trustees must appoint the Services of Fund Managers
c) These Fund Managers are professionals
d) The Scheme is run in accordance with the RBA Act, Regulations and Trust Deed and Rules
a) TelPosta Pension Scheme Trustees have been committed to managing and administering the Scheme efficiently and effectively so as to protect the interests of the Members and Founder.
b) Paying members to attend AGM would be difficult to justify since they are not
providing services to the Scheme that the Trustees should pay for.
a) The benefits for TPS members will be calculated on the basis of the Amended Scheme adopted after 30th November 2007, allowing for 4%revaluation of deferred pension over the period of deferment to age 55 and pension increase at 3% per annum
b) The effects of the amendments implemented has the effect of tremendously increasing the value of deferred benefits
c) The benefits for TPF Members is calculated taking account of the investment
a) Administrative expenses are an important and unavoidable part of the budgets of both Scheme and Fund
b) Administrative expenses are met from the resources of the Scheme/Fund
a) Liabilities of TelPosta Provident Fund are based on the members' Fund Credit
and are linked to investment yields/performance
b) The Fund passes investment returns earned directly on to members.
c) It is the returns after Fund Expenses that will determine members' benefits.
d) Benefits are paid as one off lump sum when members exit the Fund
e) The Employer has no additional liability in respect of the Fund as the members bear the investment risk.
f) This explains the equal Board representation
g) The individual members assume the long term-term investment risk. There is no guarantee to the interest allocated to members
h) The Trustees, however, note the Fund Members expectations of steady growth from year to year in the Fund Credits and expects the Fund Managers appointed to meet Members expectations.
i) This is closely monitored by Trustees during Quarterly Reports presented by the Fund Managers
j) The liabilities of the TelPosta Pension Scheme are therefore different. They liabilities in respect of pensions in payment, unpaid/unclaimed benefits and deferred pensioners with entitlement to deferred benefits.
k) The investments and longevity is assumed by the Scheme Sponsor.
a) No further Benefits Accrue in the Scheme after 1st December 2007
b) All active employees of the Sponsor as at 1st December 2007 were invited to
participate in an Umbrella Scheme called Alexander Forbes Individual Retirement Fund, which is a Defined Contribution Plan.
c) The liabilities of the Scheme are liabilities in respect of pensions in payment, unpaid/unclaimed benefits and deferred pensioners with entitlement to deferred benefits.
d) The investments and longevity is assumed by the Scheme Sponsor.
a) TelPosta Pension Scheme was closed as at 30th November 2007
b) TelPosta Pension Scheme is made up of deferred members and pensioners in
receipt of monthly pensions
c) The Pension Scheme is supposed to pay benefits until the last pensioner dies
d) The Sponsor ultimately bears the risk by underwriting the benefits
e) Beneficiaries to the Assets are both the members and Sponsor
f) Clause 27 of TelPosta Pension Scheme and TelPosta Provident Fund provides that unless otherwise terminated under the provisions hereof or the Rules, the Trust hereof shall continue until the death of the last member who having been born on or before the commencement date and dies whilst still a member or such longer period as the law may allow. This is referred to as the Trust period
g) According to Clause 32(v) of TelPosta Pension Scheme and TelPosta Provident Fund Trust Deeds the Trusts of the Scheme and Fund shall determine at the expiry of the Trust period
h) Any balance of the Funds of the Scheme remaining after the purpose of this clause have been fulfilled shall with the consent of the Commissioner (if the Scheme shall then be registered Scheme) be paid by the liquidator to the Founder any such refund shall be charged to tax in the hands of the Founder
a) The Trustees have the discretion to decide on the venue(s) and dates for the Annual General Meeting
b) The object of Annual General Managers for schemes is to enable the Trustees disseminate information on Scheme affairs to the members and for the latter to raise any pertinent issues. The nature of the Scheme is such that this objective can best be achieved by the Trustees holding Annual General Meetings regionally instead of at one centre
c) The Association wrote to Retirement Benefits Authority opposing holding of the Annual General Meetings at regional centres for the benefit of the members
d) After Retirement Benefits Authority rejected the request on 13th August 2004 the Association wrote to the Board of Trustees on 8th September 2004 proposing that two (2) of their officials should accompany the Trustees and the Board should meet the cost
e) During previous Annual General Meetings members outside Nairobi requested the Trustees to even visit more centres or remove Nairobi from the itinerary
f) The Scheme/Fund is ran by a Board mandated to address members issues
g) All members delegate this responsibility to a Board
h) The request for regional offices is not currently provided for in the perations
structure due to costs constraints. Members are however encouraged to visit Sponsors offices and PCK Pay points to receive information regarding TelPosta Pension Scheme
a) The Board of Trustees have adequately addressed the Claims on Kenextel Funds
b) The liquidator ascertained the Funds belong to TelPosta Pension Scheme Trustees
c) The Liquidator wound up the Funds and Transferred Kshs 99 Million to the Trustees on 17th June 2010
a) TelPosta Pension Scheme is a Defined Benefits Scheme
b) Members are to participate in funding the Scheme
c) For Pension Scheme members, the benefits paid are determined by applying a formula that takes into account such variables as salaries earned, age, and years of service
d) Before 1/7/1999 the Scheme was non Contributory and unfunded. It operated on a PAYG System
e) On leaving Service, the year of employment and not year a member started contributing is taken into account in calculating pensionable service
a) Last known contact address is used to send the statements
b) Some members use their last working station and as it is now they might not be known by current TKL or PCK staff
c) The Scheme Trustees sends to pensioners a schedule of benefits payments annually reflecting the gross and net pension that was paid on a monthly basis in the year
a) The Trustees made enquiries with KRA on 9/7/2006
b) KRA responded on 16/7/2006 clarifying that the exemption granted by the Minister is only in respect of the Retrenchment package, payable by the employer and is not extended to cover the Pension benefits payable by the Trustees
a) At inception of TelPosta Pension Scheme on 1st July 1999 minimum pension per month was Kshs. 100.
b) The Trustees increased this to Kshs. 500.00 and Kshs. 773 with effect from 1st July 2000 and 1st July 2001 respectively. This translated to 673% increase.
c) The Trustees raised the Minimum monthly pension to Kshs 1,500 with effect from 1/7/2008
d) Few Pension Schemes (only 5%) in the country provide for automatic Pension Increases
e) TelPosta Pension Scheme provides for an automatic 3% increase every year and is guaranteed by the Sponsor
f) 95% of Pension Schemes provide for a discretionary increase and the benefits awarded in December 2008 was a discretionary payment awarded by the Sponsor in addition to the normal 3% award
g) The Minimum pension paid by PCK arises from the fact that the last date of service for the members was after 1/12/2001
h) TelPosta Pension Scheme has members who left service prior to 1/7/999 and their salaries at the time of leaving service were low
i) Pension Calculation is salary based and what the pensioners should compare is the salary earned at the time of leaving service after 1/7/1999
j) Rule 7(d) (vi) of the Deed of Amendment dated 20/12/07 states that the Trustees shall have the right to review the level of pensions
beyond the automatic 3% p.a. and subject to the consent of the Founder, may direct that each pension be further increased. The amount of the increase shall be determined by the Trusteesand Founder in consultation with the Actuary. (What this implies is that: - Under the Scheme Rules, the Trustees may review the level of pensions in payment and, subject to the approval of the sponsoring employer, - TKL, grant a discretionary increases to pensions in payment. The amount of the increase is determined by the Scheme Trustees and the employer in consultation with the Scheme Actuary)
k) The Finance Act 2007 does not apply to TelPosta Pension Scheme. It applies to Civil Service Pensioners who are paid from the Consolidated Fund by the Treasury from revenues paid by Kenya Tax payers.
l) The Civil Service Pension Scheme operates on a PAYG System with the GOK having the capacity to raise the Minimum Pension through budgetary allocations.
m) However, the GOK has mooted the idea of introducing a Contributory Pension Scheme to cut down on the Cost of Pension Out go which in the next few years will be a time bomb
n) The GOK Through a Circular dated 24/11/2010, addressed to all Public Service Retirement Benefits Schemes proposes far reaching changes effective 1/1/2011 and 1/7/2011
o) The approval by the Sponsor provides important checks and balances since the Scheme is guaranteed by the Sponsor
p) The Deed of Amendment dated 20/12/07 provides for automatic pension increase at 3% p.a. with effect from July 2008. Only increases over and above 3% require the Founder's consent
q) The variables that affect monthly pension include age, length of service and pensionable emoluments.
r) If any of the variables changes this shall have an impact on monthly pension
s) The Pensionable emoluments have naturally increased and this is expected to lead to an increase in the nominal monthly pension
a) The Founder's consent to a discretionary pension increase was as follows:-
A discretionary pension increase to apply to main pensioners (excluding dependants) in receipt of pension as at 1st December 2008 – i.e. the discretionary pension increase to only apply to main pensioners in receipt of pension as at 1st December 2008
b) The Rules state that the eligible dependant shall be paid the pension of the member at the date of his/her death for a period of 5 years.
c) The decision to exclude the dependants was made by the Founder.
d) In the past pension increases, the dependants were not excluded.
e) The Trustees conveyed the concerns to the Scheme Founder and also commissioned the Scheme Actuary to work out the quantum and financial costs involved.
a) Legal Notice No. 77 of 2008 provides that – Trustees are required to maintain up to date record's of members' bank account details for the purposes of payment of benefits
b) Members are encouraged to open bank account details for faster and convenient
ways of receiving the benefits
c) In deed the Trustees are incurring a lot of costs in paying benefits through the Post Office compared to banks Banks charge a minimum of Kshs. 50 while others are free
d) The Trustees W.E.F 1/7/2011 incur Kshs 100 for payments through the post office.
e) The Scheme cannot guarantee such delays as each pensioner decides his/her pay point for receiving monthly pensions
f) TelPosta Pension Scheme Trustees do not get involved in the entities'
operational procedures and arrangements
a) Members are encouraged to attend AGM held annually
b) Encouraged to read Membership booklet that was distributed in 2000
c) Trustees will strive to develop an interactive website where all activities relating to Scheme/Fund shall be posted
d) Trustees had promised to hold this one
a) Working hours remain 8 am to 5pm
b) However the offices are open to the members between 9 a.m. and 3pm
Members welcome to visit Scheme offices and write to raise any matterregarding their benefits
a) Trustees communicate through last known contact address
b) Trustees have managed to get contact Telephone numbers of most pensioners and the Trustees have been striving to build this databank
c) This Years Members Education was communicated through Advertisement in Newspapers and SMS
a) Beneficiaries of Members who retired after 1/7/1999 need not go through the employer as the Trustees have their records. The beneficiaries are encouraged to submit their documents directly to TelPosta Pension Scheme offices
b) Dependants of pensioners inherited by TelPosta Pension Scheme Trustees as at 1/7/1999 should submit the claims via Telkom Kenya Human Resources Department/ Headquarters since the family details are still with Telkom Kenya in personnel files of the members
c) The Board of Trustees of TelPosta Pension Scheme has since 2000 requested Telkom Kenyan Human Resources Department Headquarters to avail requisite documentation on pensioners Trustees inherited as at 1/7/1999. This would enable the Trustees to comply with Retirement Benefits Regulations, dependants of the pensioners to submit claims directly to TelPosta Pension Scheme Trustees and ensure that Trustees have clean, accurate and correct data.
d) TelPosta Pension Scheme Trustees have reminded Telkom Kenya Limited to avail copies of requisite documentation so that dependants can submit the claims directly to TelPosta Pension Scheme.
e) Members encouraged to read Members booklet and enlighten their potential beneficiaries on the criteria of benefits payments
a) TelPosta Pension Scheme Trust Deed & Rules provides that dependants pension is payable for a period of 5 Years
b) There is cost implications to such an amendment
a) Rule 6 of Deeds of Amendment of TelPosta Pension Scheme Trust Deed and Rules dated 03/12/04 , 20/12/07 and 1/8/2010 provides that:-
Any member shall be entitled at any reasonable time to inspect a copy of the
Trust Deed and Rules of the Scheme and any amendment made thereto
b) TelPosta Pension Scheme Trust Deed and Rules is a legal document and members are invited to inspect it as they are entitled to do so.
c) A booklet summarising in a non technical language the provisions of the Trust Deed was distributed to all pensioners and members in 2000
d) The Scheme is also in the process of creating an interactive website for the document to benefit members who can access internet.
a) Properties valued at Kshs. 170 million were vested in TelPosta Pension Scheme Trustees after they had been grabbed.
b) So far the Trustees have obtained Titles to some of the properties through court action and are also in the process of securing titles for outstanding properties.
c) Some Properties are still outstanding
d) The Board of Trustees will follows the due process in acquiring Titles to its properties.
e) Most Titles of properties having no problem have been obtained.
f) Investment Guidelines issued by Retirement Benefits Authority for registered pension schemes provide that properties should not exceed 30% of total asset portfolio of the scheme.
g) On inception at 01/07/99 the properties constituted about 82% of the total assets portfolio of TelPosta Pension Scheme.
h) Sales are necessary for the Scheme Trustees to be compliant.
i) However, TelPosta Pension Scheme Trustees are expected to maximize returns on the investment. This will be achieved by unlocking their full potential to maximise returns before disposal
j) The Scheme properties had been generally run down even before the vesting and the returns are relatively low.
k) The Scheme Trustees will adopt (adopts) a disposal policy that maximises on returns by unlocking their full potential before disposals
l) Members benefits are claimed in accordance with the Trust Deed and not in accordance with how much shares one has in a property
k) All Assets are held by the Trustees for the benefit of all TelPosta Pension Scheme Members (Deferred, unclaimed, unplaced and current pensioners)
l) All TelPosta Pension Scheme assets are owned by Trustees in trust and are not categorized in terms of various types of membership
m) Members are paid their benefits as per TelPosta Pension Scheme Trust Deed and Rules.
n) The size of TelPosta pension Scheme is shown in the Scheme's Annual Financial
Statement for the year ended 30/06/2010. Summarized copies have been availed to members
o) The members occupying Scheme properties without paying rent are doing so under preconceived notion that they were entitled to be given preference at disposal
p) Trustees are mandated under the Retirement Benefits Act as well as the Trust Deed and Rules to engage the services of professional advisers
q) The continued reluctance by the tenants to pay rent has been mainly occasioned by the erroneous misinterpretation of the temporary orders of injunction issued in the cases to the effect that it also covers payments of rent, and also to the fact that the Property Manager appointed had been reluctant to levy distress or evict tenants who default in payment of rent
TelPosta Pension Scheme Trustees are expected to maximise returns on investments. The returns on residential properties have been zero (0) (for undeveloped plots and 1.6% (for houses)
a) Retirement Benefit Regulations provide that Trustees should be appointed to a term of 3 years which is renewable.
b) The Regulation applies to all Schemes registered by Retirement Benefits Authority.
a) Regulation 3 (i) of the Retirement Benefits (Occupational Retirement Benefits Schemes (Amendment) Regulations, 2005 provides that no defined benefit scheme shall have less than three Trustees and the number of the Trustees nominated by members shall not be less than one third of the Board of Trustees. This is captured in clause 11 (a) of TelPosta Pension Scheme Trust Deed.
b) The Board of Trustees of TelPosta Pension Scheme requested the Scheme Founder to ensure compliance and issue regulations and procedures which should be used in nominating Trustees by the members. This is in accordance with Clause 12 of TelPosta Pension Scheme Trust Deed.
c) Clause 12 of TelPosta Pension Scheme Trust Deed provides that the nomination of the requisite number of Trustees by the
members and the removal of such Trustee or Trustees shall be conducted in such manner and in accordance with any procedures or regulations laid down or issued by the Founder from time to time.
d) If a person so appointed does not qualify to be a Trustee as per the Retirement Benefits Act and Regulations and TelPosta Pension Scheme Rules then the reasons should be brought out.
e) Personal attacks on the persons of individual Trustees should be discouraged.
f) The Trustees once appointed owe a duty to discharge the Trust that has been
reposed of them. It is not their duty to serve sectional interest
g) The retirement benefits are vested directly in individual members and not group of members.
h) The members include pensioners and deferred pensioners. All members are equal. There are no superior or inferior members be they pensioners or deferred pensioners.
i) Not all pensioners are members of Postel Pensioners Association. However, the Founder has in the past appointed one of the two member nominated Trustees from a list submitted by Postel Pensioners Association
j) TelPosta Pension Scheme is a Defined Benefit Arrangement and the Benefits are underwritten/guaranteed by the Sponsor (Telkom Kenya Limited) . That is why there cannot be equal representation. The representation is therefore skewed in favour of the bearer of the risk (The Sponsor)
k) The Sponsoring Employer of a Defined Benefits Scheme is also a beneficiary of the Scheme, on the basis that the Sponsoring Employer will be responsible for making up any shortfall in the Scheme funding position and because (in most Schemes) the Sponsoring Employer would be among the list of potential recipients of any Surplus on the winding-up of the Schemes
l) Given that the investment and longevity risk is assumed by the Sponsor who has an open-ended liability by guaranteeing the level of the pension benefits promised by the Scheme , there cannot be equal representation at the Board
m) Telkom Kenya Limited is the Sponsor and it is the Sponsor who guarantees the benefits in payments. It shoulders the risks and in
the unlikely event that the liabilities cannot meet the ability to pay pension benefits, the Sponsor will have to make good the shortfall
- Regulation 30 (4) (a) of Retirement Benefits Regulations, 2000 provides that a Scheme shall conspicuously display in the office of the Scheme a notice notifying the members that the audited accounts together with the Trustees' and investment reports are available for inspection.
- Regulation 30 (4) (b) of Retirement Benefits Regulations 2000 provides that a Scheme shall send to its members a summary of its audited accounts together with the member's benefits statement.
- TelPosta Pension Scheme Trustees have complied with the law.
- Annul General Meetings for Trustees are not held for passing resolutions since Trustees manage and administer the Scheme in accordance with TelPosta Pension Scheme Trust Deed and Rules, Retirement Benefits Act and Regulations, Income Tax Act and Regulations, and any other relevant legislation and regulations.
- The request from the Association was responded to on 28/01/2002
- The Board responded to the second request on 02/09/05
- Accordingly the Board of Trustees resolved that the Pensioners request be considered.
- The Trustees have set modalities to enable pensioners join a Co-operative Society recognized by both the Trustees and the Sponsor.
- The Modalities will be communicated as soon as all requisite documentations and MOU are approved.
- TelPosta Pension Scheme Trustees have a fiduciary responsibility to all the 15,000 members