SEKU Pension Scheme

Introduction

The SEKU Pension Scheme (the Scheme) was established on 1st January 2010. It operates as a defined contribution (DC) scheme, providing retirement benefits to the staff of SEKU at a specified age. Additionally, it provides relief for the dependents of deceased members as defined in the Scheme’s regulations.

The Scheme pays benefits on leaving service, retirement, and in the event of untimely demise of a member. The Trustees also manage a Trust Fund for beneficiaries of deceased members who are under the age of eighteen years, or as otherwise advised.

The Scheme was established under irrevocable trusts, with a separate Trust Deed and Rules (TD&R). It is registered and operates in accordance with the Retirement Benefits Act, 1997, Retirement Benefits Regulations, 2000, and subsequent legislation. The Scheme is approved by the Kenya Revenue Authority (KRA) as a tax-exempt retirement scheme under the Income Tax Act (Cap. 470).

The Fund's Structure
SPONSOR
BOARD OF
TRUSTEES
Administrator
Custodian
Secretariat
Fund Manager
Auditor
Members

Fund Benefits

Retirement Benefits
Normal Retirement

Benefits payable to members upon attaining the specified retirement age. Members receive accumulated contributions which can be withdrawn as a lump sum or used to purchase a retirement income plan.

Early Retirement

Members may opt for early retirement from age 50. Benefits are calculated based on contributions accumulated up to exit date.

Withdrawal Benefits

Payable to members exiting employment due to resignation, termination, or dismissal. Members receive accumulated contributions along with the employer’s portion per Scheme rules.

Death in Service Benefits

Payable to beneficiaries of a member upon death. Benefits include accumulated member benefits and group life lump sum.

Immigration Benefits

Payable to a member permanently emigrating. Benefits are 100% of the accrued member benefits at the time of leaving service.

Death in Retirement Benefits

Payable to beneficiaries upon death in retirement. Benefits include outstanding accrued benefits in case of income drawdown.

Ill Health Benefits

Payable if a member becomes incapacitated due to ill health. Benefits are similar to early retirement benefits.

The Scheme's Investment Objectives

1
Sufficient liquidity
2
Real return
3
Security
4
Long term growth of capital
5
Asset liability matching
6
Risk aversion
7
Diversification of assets
8
Legislative compliance

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