BACKGROUND INFORMATION
Kenyatta University Staff Retirement Benefits Scheme (KUSRBS) was established under an irrevocable Trust Deed dated 1st January 1994 and registered by Kenya Revenue Authority (Income Tax Department) under Exemption Certificate Serial No. 00978. Prior to that, the scheme was managed by Kenya National Assurance Company Ltd (KNAC) together with that of the UON, of which Kenyatta University College was then a constituent college.
In 1985, Kenyatta University College attained the status of a fully-fledged university & continued remitting the contribution to KNAC up to 1989 when KNAC wound up. The contributions were redirected to a fixed deposit account with the National Bank of Kenya Ltd up to 1993.
With the establishment of KUSRBS by an irrevocable deed in January 1994, the accumulated savings were transferred to Barclays Trust Investment Services Ltd. The accumulated deposits by then amounted to ksh 72,317,160 with a membership of 863.
At the time, the contribution rates for the employees and employer were 5% and 10% respectively. This was later reviewed to 2.5% for employees and 27.5 % for the employer. Currently, the contributions are 10% for employees and 20% for the employer.
The Kenyatta University Staff Retirement Benefits Scheme is designed to ensure the financial security of the scheme members upon retirement. As a comprehensive savings plan, the scheme enables employees to contribute regularly toward their future, with additional contributions from the university. The fund is professionally managed by a consortium of service providers and trustees who ensure that investments are made prudently to maximize returns while safeguarding members’ contributions. By fostering financial independence, the scheme underscores the university’s commitment to the well-being of its staff, both during and after their service.
A key feature of the scheme is its flexibility and focus on empowering members to make informed financial decisions. Members have access to a range of investment options tailored to suit different risk appetites and financial goals. The program also provides regular updates and training sessions to educate staff on their rights, obligations, and the best practices for financial planning. These initiatives ensure that members remain engaged and proactive in planning for their financial future. Additionally, the scheme adheres to strict regulatory guidelines, ensuring transparency, accountability, and fairness in its operations.
Beyond financial savings, the Kenyatta University Staff Retirement Benefits Scheme offers peace of mind and a sense of security to its members. The scheme is not merely a financial tool; it is a support system that ensures staff can retire with dignity and comfort. It also reflects the university’s broader commitment to fostering a supportive work environment where employees feel valued and cared for. By participating in the scheme, staff members take a significant step toward securing their future while contributing to a culture of collective well-being at Kenyatta University.
SCHEME PURPOSE
The main purpose of the Scheme is to provide cash benefits and pension for Members upon attainment of the retirement age and to provide relief for the dependents of deceased members. The normal retirement age for non-teaching staff is sixty (60) years and that of the teaching staff is seventy-four (74) years.
SCHEME TYPE AND DESIGN
KUSRBS is an occupational Retirement Benefits Scheme established by Kenyatta University as the sponsor to provide retirement benefits for its employees. It is a defined contribution scheme with the employees contributing 10% of their basic salary while the employer contributes 20%. The sponsor also provides a group life cover to the scheme members.
REGULATION
The scheme is regulated by the Retirement Benefits Authority (RBA) under the Retirement Benefits Act. Other subsidiary legislations include:-
- Retirement Benefits (Occupational Retirement Benefits Schemes) Regulations, 2000.
- Retirement Benefits (Good governance Practices) guidelines 2018
- Retirement benefits (Treating Customers fairly) guidelines
In addition, the scheme is also governed through the Trust Deed and Rules and the scheme policies.
