Defined Benefits
The Kenya Ports Authority Pension Scheme (‘the Scheme”) was established by a Trust Deed dated 1 January 1998. The Scheme is a defined benefit Pension Scheme and was formed for the employees of The Kenya Ports Authority (‘the Sponsor’), then known as East Africa Harbor Corporation. The Scheme is governed by a Trust Deed and Rules which have been approved by the Retirement Benefits Authority (RBA). The main purpose of the Scheme is the provision of cash benefits and pensions to the members upon attainment of the retirement age, and where applicable, benefits for dependents of deceased members. The Scheme is among the largest Pension Schemes in Kenya and is mature. The number of active members above the age of 50 years, pensioners, and deferred pensioners are much greater than the number of younger active members. The Scheme is approved by Kenya Revenue Authority as a retirement benefits scheme for the purposes of the Income Tax (Retirement Benefits) Rule No. 4 and is treated as an ‘exempt approved scheme’ for the purposes of that Act (1st Schedule 14).
Defined Contributions
The Kenya Ports Authority Retirement Benefits Scheme 2012 is a Defined Contribution Scheme. The Scheme commenced 1st January 2013 and applies to eligible pensionable employees of the Kenya Ports Authority (‘KPA’) who join the service in January 2013 and those pensionable employees who were in the service of KPA on 1 January 2013. The main purpose of the Scheme is to provide retirement benefits for its members. The responsibility for managing the Scheme rests with the Scheme Trustees. In carrying out their duties, the Trustees take advice from professional advisors. The assets of the Scheme are held separately from KPA in a trust fund. Significant safeguards have been put in place to ensure that the assets of the Scheme are kept secure. The Scheme is registered and approved under the Retirement Benefits Act 1997 and complies with all the provisions of this Act. The Scheme is also approved by the Kenya Revenue Authority as a registered Scheme under The Income Act (Cap 470).