Introduction I welcome you all to the 2017 Members Education.

Transcription

1 1

2 Introduction I welcome you all to the 2017 Members Education. The Trustees will be going round all the colleges for the purpose of carrying out members education. The following is the program for this year s members education, 2

3 Program Item Time Facilitator Introduction and Updates on the Pension Scheme p.m p.m. Chairman - BoT Investments 12.45p.m. 1:30 p.m. Gen Africa Asset Management Ltd. Questions & Answers 1.30 p.m p.m. Chairman - BoT Vote of Thanks 1.45 p.m. Representative of College/ Campus 3

4 Board of Trustees Mr. M. Adala Rep. Non- Teaching Staff (Chairman) Prof. P.M.F. Mbithi Rep. Council (VC) Mrs. P. C. C. Koske Rep. Council Dr. S. Advani Rep. Council Prof. G.A.O. Magoha Rep. Teaching Staff Dr. S. W. Luketero Rep. Teaching staff Dr. G. Kiringa Rep. Non-Teaching Staff 4

5 Elections for Non-Teaching Member Trustee The second and final term for Mr. M. Adala the current Chairman of the Board will expire on 8 th September Dr. Grace Kiringa will also be seeking re-election as her 1 st Term will also be ending on 8 th September Elections for Non-Teaching Member Representative Trustees will therefore be conducted in the month of August Interested and Qualified Non-Teaching members are free to vie when the time comes. 5

6 Secretariat The members of the Secretariat have remained as follows: - Mrs. T. K. Alyela: Scheme Administrator Mr. C. O. Otage : Scheme Officer Mr. J. K. Kariuki : Scheme Accountant Mrs. F. Munyao : Office Admin/ Driver 6

7 Service Providers The Trustees are fully responsible for managing the Scheme in accordance with the Trust Deed and Rules. However, the Trustees are required under the law to engage services of various service providers while carrying out their duties. The following are the current Scheme s service providers: - Fund Managers : Gen Africa & Old Mutual Investment Group Custodians : Standard Chartered Bank. Actuary : Alexander Forbes Financial Services Lawyers : Kaplan & Stratton External Auditors : Kenya National Audit Office 7

8 Rate of Return Rate of return declared by Trustees for the financial year ending 30 th June 2016 was 5%. The rate of return declared since 2008 is as shown below: - The Trustees together with the fund managers are continually working closely to ensure members get the best rate of return every year. 8

9 Fund Value The Trustees have continuously adhered to prudent investment strategies within the approved guidelines provided by the Retirement Benefits Authority (RBA). As at 30 th April 2017 the Scheme s fund value stood at KShs. 14,176,331,

10 Investment Portfolio as at Property 13% Cash & Fixed Deposits 5% T-Bills 13% Shares 28% Treasury Bonds 34% Corporate Bonds 7% 10

11 Scheme s fund growth: 2007 to ,000,000, ,000,000, ,000,000, ,000,000, ,000,000, ,000,000, ,000,000, ,000,000, Scheme Fund Value

12 Benefits Payable by the Scheme Normal Retirement Benefits Early Retirement Benefits Retirement on ill Health Death Benefits Withdrawal Benefits 12

13 Additional Voluntary Contributions (AVCs) Members are encouraged to make AVCs in order to enhance their benefits. AVCs together with accrued interest are payable in full whenever members exit from the Scheme. [i.e. AVCs are not subject to the requirement of 1/3 rd lumpsum and 2/3 rd ]. Members wishing to make AVCs should write a letter to the Finance Officer, stating the amount to be deducted, and giving a copy of the letter to the Scheme Administrator. 13

14 Nomination of Beneficiary Forms Members are advised to complete the nomination of beneficiaries form and update them regularly so that in the event of death it makes it easier for benefits to be processed and disbursed to their beneficiaries. Nomination of beneficiary forms are available at the Scheme offices or at the College Registrar s offices or can be downloaded from the Scheme s website at pensions.uonbi.ac.ke 14

15 Planning for retirement Seminar A planning for retirement seminar for Teaching Members of Staff with eight (8) and nine (9) years or less to retire was held in the month of February Retirement Seminar for Nonteaching members of staff with 11 years or less will be held in the month of September

16 Other updates 1.Income Draw Down The Trustees resolved to introduce Income Draw Down (IDD) as an additional option to purchasing annuities with the 2/3 rds of retired member s benefits. The Trust Deed and rules was amended to incorporate IDD. There are several players in the market who are offering IDD. Retiring Members can opt to either purchase Annuities or enter an IDD arrangement from any provider in the market. 16

17 2. Post Retirement Medical Scheme In 2008 the Trustees carried out feasibility studies regarding implementing the PRMS. However they COULD NOT implement it as they lack legal mandate. A Steering Committee formed by members to spearhead its implementation commissioned an ACTUARIAL STUDY which revealed that contribution rates were relatively higher than what had earlier been envisaged. To successfully implement the PRMS there also has to be a critical mass (75% of the total UoN Staff) which is a big challenge to achieve considering that the PRMS is voluntary. There are several players in the market who have formed umbrella PRMS where members are free to join. The RBA has also passed a law which allows members to either use part of their retirement benefits upon retirement or make AVC while in service for the purpose of taking up PRMS when they retire. 17

18 3. Rate of return As you are all aware, there has been a lot of volatility in the market resulting from various economic factors and this has had a negative impact on the Scheme s performance. The Trustees together with the fund managers are working tirelessly to ensure the Scheme gets the best return possible in the market under the current prevailing economic environment. 18

19 Scheme s Offices & Contacts The Scheme s offices are located on 3 rd Floor of UNIPEN Apartments Block A. Members are free to visit the offices and make any relevant enquiries concerning their Scheme. The following are the contacts for the Scheme: Website : pensions.uonbi.ac.ke Address : P. O. Box GPO, Nairobi Telephone : uonpension@uonbi.ac.ke 19

20 Thank You 20