The SEKU Pension Scheme operates a Defined Contribution (DC) pension arrangement where members have individual accounts funded by both employer and employee contributions plus investment income.

Monthly contributions are remitted by both employee and employer at rates specified in the Scheme Rules. Contributions are credited to your individual member account.

Your retirement benefit equals:

• Your total contributions
• Employer contributions (subject to vesting rules)
• Investment income earned over time

The SEKU Pension Scheme offers:

• Retirement pension
• Survivor’s benefit for nominated dependants
• Disability pension (if certified)
• An option for a lump sum withdrawal

Your benefit depends on your vesting schedule. You may:

• Receive your own contributions plus vested employer contributions
• Preserve your funds in the Scheme
• Transfer to another RBA-registered scheme

Upon death, your nominated beneficiaries and/or dependents will be paid your benefits in full. Please ensure you update your beneficiaries’ details when a major change occurs in your life (i.e., Marriage, death of a spouse or a child, additional children, etc). Important to note: Remember to apportion the benefits to each nominated beneficiary as a percentage, with the total summing to 100%.

Yes. If certified permanently disabled by a medical board and approved by Trustees, your full balance becomes payable.

No. Pension funds cannot be assigned or pledged as collateral under the Retirement Benefits Act.

Yes. Preserved funds continue to earn investment income.

Statements are issued at least once a year. You may also request an updated statement anytime.

The best time to start saving for your pension is now the earlier, the better. Starting in your 20s maximizes compound growth, meaning even small contributions grow significantly over time. But if you’re older, begin as soon as you can delaying further reduces your savings’ potential.

To have financial security at retirement. The funds you save will be a contingency fund in case of sudden illness or incapacitation that may lead to your retirement. Offers financial protection to your dependents in case of death Your benefits can be used to secure a mortgage. It is a safety net upon loss of employment The benefits you save cannot be attached and cannot be used to offset loans. In bankruptcy, the benefits do not form part of your assets. Upon death, your benefits do not form part of the estate for purposes of administration. You will benefit from tax advantages.

Members of Retirement Benefits Schemes registered with RBA enjoy tax-free contributions of up to Kshs. 30,000 per month. (Kshs. 360,000 p.a.). Where one transfers gratuity to a registered Scheme, the tax-exempt amount is Kshs. 360,000 per year (i.e., Kshs. 30,000/= per month). Investment income of the scheme is exempt from corporation tax. Contributions to post-retirement medical funds are tax-exempt up to KES 15,000 per month. Tax-free benefits for a member who leaves service and has: – Attained the retirement age of the Scheme (whether Early, Normal or Late). Withdraws their benefits due to ill health. Has been a member of a scheme for 20 years or above.

You are entitled to payment within 30 days from the date of filing a completely filed claim. Transfer from one pension scheme to another within 60 days after notice. You are allowed to access and interrogate the scheme documentation. Right to attend AGMs to know how your scheme is performing. Right to annual benefit statements from your scheme. Right and responsibility to nominate beneficiaries. Right to elect Trustees of the Scheme and to approve their remuneration. Right to inform the RBA of any anomalies in the scheme. Right to immediate vesting of benefits.