Kenya. Pension scheme providers urged to adopt new regulations
The government has asked pension scheme providers in the country to adhere to the new pension regulations.
The new regulations came into force after the adoption of the Pensions Amendment Bill of 2020. The Bill allows subscribers of pensions schemes to access up to 40 per cent of their pension to own houses.
Previously, upon discharge, employees were entitled to their own contributions, 50 per cent of their employer’s contributions, and any investment income that accrued after those contributions.
Furthermore, the regulations require the Retirement Benefits Authority (RBA) to regulate corporate trustees by requiring them to submit audited financial statements within three months after the end of every financial year.
Retirement Benefits Authority is a regulatory body under the National Treasury, established under Retirement Benefits Act.
The Retirement Benefits Act was enacted as part of the ongoing reform process in the financial sector to bring the retirement benefits industry under harmonized legislation, to address the many problems that have hitherto faced the industry.
The regulations in the pension schemes aim at guaranteeing people affordable houses as advocated in the big four agenda of the government comprising Food Security, Affordable Housing, Manufacturing, and Affordable Healthcare.
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