Dear Member,   You can view your member statements and estimate your benefits projections from your portal by signing up on https://members.kpapension.co.ke.

info@kpapension.co.ke

0768777444

Introduction

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).

Fund Benefits

The benefits of the Scheme are comprehensive and Include:

  • A cash lumpsum equivalent to one third of the member’s fund credit upon retirement age.
  • A pensioner for life through a purchase of an annuity from the member’s preferred annuity provider.
  • Income drawdown option.
  • Early retirement option from the age of 50 years.
  • A pension on ill health retirement.
  • In case of death of a member while in service, the nominated beneficiaries are paid cash lumpsum of the member’s total fund credit.
  • In case of death upon retirement, the beneficiaries may continue to receive pension depending on your annuity selection or income drawdown plan.
  • If a member leaves service before retirement, 50% of the accumulated benefits can be accessed and the other 50% is payable at the normal retirement age or the benefits are transferable to another scheme if the member opts for transfer, or a deferred pension payable from the normal retirement age.
  • In case a member is permanently emigrating out of the country; full fund credit is payable to the member upon submission of sufficient emigration documentation.
  • A life Assurance Cover in case of death in service.

Other Additional Benefits Include:

  • Tax relief on member contribution subject to applicable tax limits
  • Transfers into the scheme from the member’s previous employer/scheme before joining KPA
  • A member may elect to pay additional voluntary contributions which will boost the benefits payable upon retirement of the member.
  • Upon retirement, a member may elect to utilize up to a maximum of 10% of his fund credit for the purchase of post-retirement medical cover.

Financial Update

Fund Size as at 31st December 2021 -Kshs. 17.2 Billion
Membership as at 31st December 2021
Active members in employment – 5612

Key Achievements

  • Review of the Scheme rules to allow for an internal income drawdown plan.
  • The costs of the life assurance benefit are currently being met by the Employer.
  • Review of the Scheme rules to allow for a Post Retirement Medical Fund
    Successful tendering process for new service providers for the 3 years 2019 to 2021.

Terms You Need To Know

  • Early Retirement Age Means anytime between your fiftieth and your sixtieth birthday at which you may retire with KPA’S
  • Late Retirement Age Means the age at which you retire if you are retained by KPA beyond your Normal Retirement Age.
  • Normal Retirement Age means your sixtieth birthday. This is the age at which you are normally expected to retire.
  • Member Account Your Member Account is the total value of the assets held in the Scheme on your behalf. It is made up of: All contributions (Employer and Employee Contributions) paid into the Scheme which has been allocated towards your retirement savings; Plus Any amounts transferred in from a previous Scheme  Plus  The investment returns (fewer expenses) made from investing the money.
  • Annuity – a monthly pension for a guaranteed period of time or the lifetime of a member as shall be purchased by a member’s fund credit according to immediate annuity rates applicable at his age available at the time of purchase from an insurance company duly registered and as selected by the member.
  • Income Draw Down – This option provides more flexibility to you in retirement, but the income is not guaranteed and can fall as well as rise. Income drawdown is not suitable for everyone and you are advised to take the appropriate advice from a financial advisor before considering this option.

Service Providers

The service provider of KPARBS 2012 is:

  • Fund Manager  – Our current Fund managers are ICEA Lion Asset Management, Gen Africa Asset Manager and Kenindia assurance. 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.
  • Custodian – Our current custodian is Co-operative Bank. They hold the scheme’s funds, assets, and investments in safe custody for our members and beneficiaries.
  • The Fund is managed by a Board of Trustees that is established under a Trust as required by the Retirement Benefits Act. The day to day running of the Fund is carried out by the Secretariat of the DB Fund that supports the Board in meeting its objectives. The Secretariat headed by the Scheme Administrator works in liaison with the Fund service providers that include fund managers, custodians, actuaries, lawyers and auditors.
error: Content is protected !!