The Kenya Power & Lighting Company Limited Staff Retirement Benefits Scheme (‘The Fund”) was established by a Trust Deed dated 1 January 1970. The Fund is a defined benefit occupational pension fund and was formed for the employees of The Kenya Power & Lighting Company Limited (‘the Sponsor’), then known as East Africa Power and Lighting Company Limited.
The Fund is governed by Trust Deed and Rules which have been approved by the Retirement Benefits Authority (RBA). The main purpose of the Fund 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 Fund 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 is much greater than the number of younger active members. The Fund 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).
The Fund closed to new members and ceased receiving contributions from existing members with effect from 30th June 2006. The closed Fund continues being a defined benefit registered scheme, whereby a member who retires on his normal retirement date receives a pension calculated as 1/400 of his final pensionable emoluments for each complete month of pensionable service to 31 December 1999 and 1/600 of final pensionable emoluments for each month of pensionable service from 1 January 2000 up to closing date.
A member who leaves before normal retirement date can elect to receive 50% of his accrued benefits or transfer the benefits to another pension Fund.
In the case that a member dies, the eligible beneficiaries of the deceased member are entitled to a lump sum and monthly pension benefits.
The members of the Fund comprise of active, in-service employees who were employees of the Sponsor as at June 2006, deferred members of the Fund and retirees.
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 that supports the Board in meeting its objectives. The Secretariat headed by the Trust Secretary works in liaison with the Fund service providers that include fund managers, custodians, actuaries, lawyers and auditors.