Introduction
The Kenya Ports Authority Pension Scheme (‘the Scheme”) was established by a Trust Deed dated 1 January 1998 The Scheme is a defined benefit occupational 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 of sixty years, and where applicable, benefits for dependents of deceased members. The Scheme is among the largest Pension Funds 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).
Fund Benefits
The Scheme closed to new members and is receiving contributions from a few members with effect from 31st December 2012. The closed Scheme continues being a defined benefit registered Scheme, whereby a member who retires on his normal retirement date receives a pension calculated as 1/480 of his final pensionable emoluments for each complete month of pensionable service. (A member who leaves before the normal retirement date can elect to receive 50% of his accrued benefits or transfer the benefits to another registered pension Fund).
Service Providers
The service provider of KPAPS are:
- Fund Manager – Our current Fund managers are CO-OP Investment services. They are responsible for implementing the schemes’ investment strategy and managing its activities. They also oversee mutual funds, manage analysts, conduct research on pension industry matters, and guide trustees on important Investment decisions.
- Actuary – Our current Actuary is Actserv. They offer actuarial services which include: -Setting up minimum Funding requirements (MFR), and revise them from time to time. Keep checks on all the money coming into the scheme and all the investments made out of those funds. Monitor movement of cash flows such as payments of benefits to beneficiaries. They provide a formal valuation report to the employer and trustees so as to establish the status of the scheme whether it is in deficit or surplus.
- Custodian – Our current custodian is KCB ltd. They hold the scheme’s funds, assets, and investments in safe custody for our members and beneficiaries.