Kenya. RBA in fresh bid to protect early retirees from spending their pension savings before the age of 55
Pensions regulator RBA has embarked on a fresh bid to block employees retiring early from accessing half of their employer’s pension contribution.
The Retirement Benefits Authority wants the law allowing employers to keep pensioner’s contributions until they are 55-years-old to be implemented.
Read also Nigeria. Investing pension funds: Worries, prospects by stakeholders
Through Legal Notice No88 of 2019, the National Treasury sought to amend the Retirement Benefits (Occupational Retirement Benefits Schemes) Regulations 2000, to effect the changes.
Read also Nigeria. Pension operators reduce investment in real estate to N220bn
Treasury, in the June 2019 notice by former CS Henry Rotich, sought to remove clauses that allowed members to access 50 per cent of employers’ contribution and the investment income.
The proposal ‘technically’ blocks those who lose their jobs before they’re 55 years-old from getting their pension. RBA has, therefore, organised forums to unbundle the regulations as well as another which seeks to compel public servants to contribute their own pension starting May.
The meetings will start today in Nairobi at the Sarova Panafric before the team heads to Mombasa, Kisii and Machakos on Thursday.
Read more @The Star
