Chairman`s Speech 2012 - The University of Nairobi Pension

Report
INTRODUCTION
I
welcome you all to the 2012
Members Education Day.
 The
Trustees are committed to
educating members and every year
they ensure they go around all the
campuses for that purpose.
 The following is the program for this
year’s members’ education,
PROGRAM FOR THE
MEMBERS’ EDUCATION
Item
Time
Facilitator
Opening Remarks and
Introduction
Updates on the Pension
Scheme
Personal Finance
Management
Questions & Answers
12.30 p.m. – 12.35 p.m. Chairman - BoT
Vote of Thanks
12.35p.m. – 12.50 p.m.
Chairman - BoT
12.50p.m. – 1:50 p.m.
Peter Wachira - Pinebridge
1.50 p.m. – 2.00 p.m.
Chairman - BoT
2.00 p.m.
Representative of College/
Campus
BOARD OF TRUSTEES
 Prof. P.M.F. Mbithi - Chairman, rep. Council
 Prof. G.A.O. Magoha- Rep. Council
 Prof. L.W. Irungu
 Mr. I. O. Awuondo  Dr. W. Nyangena  Prof. P.G.O. Weke  Mr. B.D. Njuguna  Mr. M. A. Adala
 Ms. R.W. Ngondo -
Rep.
Rep.
Rep.
Rep.
Rep.
Rep.
Council
Council
Teaching Staff
Teaching staff
Non-Teaching Staff
Non-Teaching Staff
UoN Chief Legal Officer(Co-opted)
NEW NON-TEACHING MEMBER TRUSTEES
 Mr. B.D. Njuguna & Mr. M. Adala replaced Mr. N. A. Oyugi
and Mr. G. P. Mbugua the previous Non-Teaching member
elected Trustees.
ELECTION FOR TEACHING MEMBER TRUSTEES
 The term for Dr. W. Nyangena, will expire in
October 2012, but he is eligible for re-election
having served only one term.
 Elections to be conducted in the month of
September 2012.
 Members are requested to participate actively to
elect their Representative Trustee
 More information to be given later.
SECRETARIAT
The members of the Secretariat are as follows:  Mrs. T.K. Alyela : Scheme Administrator
 Mr. C. O. Otage : Scheme Officer
 Mr. J. K. Kariuki : Scheme Accountant
The Scheme’s buildings have the following
employees: Mr. Isaiah Kaara : Caretaker AMBANK House
 Mr. David Mwangi: Electrician
 Mr. Philip Kioko : Caretaker UNIPEN Flats
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 : Genesis Kenya & Pine Bridge
Custodians: Standard Chartered Bank.
Actuary
: Alexander Forbes Financial Services
Lawyers
: Kaplan & Stratton
External Auditors : Kenya National Audit Office
MEMBERSHIP
 All staff on permanent and pensionable
terms of employment by the University of
Nairobi (Sponsor) are eligible to join the
University of Nairobi Pension Scheme
2007.
 Newly employed members should ensure
they obtain membership registration forms
either from the Scheme’s offices or from
the offices of the Registrars of their
respective colleges.
MEMBERS ON UNPAID LEAVE OF
ABSENCE
Members who go on unpaid leave of
absence are required to continue making
contributions to the Scheme (i.e. 30% of
their
basic
salary)
to
ensure
their
membership.
Those members of staff on unpaid leave
who do not continue contributing stand the
risk of losing the benefits of a member, as
in the case of death in service.
Additional Voluntary
Contributions (AVCs)
 Members are encouraged to make AVCs in order to
enhance their benefits.
 There is also a tax benefit for pension contributions
up to KShs 20,000 per month.
 AVCs together with accrued interest are payable in
full whenever members leave the Scheme. [i.e. AVCs
are not subject to the requirement of “1/3rd lumpsum
and 2/3rd”].
 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.
UNPS STRATEGIC PLAN
 The Trustees have come up with
the first ever Strategic Plan for the
Scheme for the period 2012 –
2014.
 This will enable the Trustees to
assess the performance of the
Scheme against the set up
strategic objectives.
FUND VALUE
 The Trustees have continuously adhered
to prudent investment strategies within
the approved guidelines provided by the
Retirement Benefits Authority (RBA).
 As at 31st March 2012 the Scheme’s fund
value stood at KShs. 7,106,625,741.62
compared to KShs. 6,237,688,453.50 as at
31st March 2011.
Scheme’s Investment Portfolio
as at 31.3.12
Property
21%
Cash and Demand
Deposits
12%
T-Bills
9%
Shares (quoted)
Market Value
22%
Corporate Bond
2%
Kenya Government
Securities
34%
Scheme’s fund growth for the
period 2009 to March 2012
8,000,000,000
7,000,000,000
6,000,000,000
5,000,000,000
4,000,000,000
3,000,000,000
2,000,000,000
1,000,000,000
30.06.09 30.09.09 30.06.10 30.09.10 31.12.10 31.03.11 30.06.11 30.09.11 31.12.11 30.03.12
Fund Value
BENEFITS PAYABLE BY THE
SCHEME
 Normal Retirement Benefits
 Early Retirement Benefits
 Retirement on ill Health
 Death Benefits
 Withdrawal Benefits
Trivial Pension
Members whose 2/3rds amounts to an
annuity, which is less than 75% of the
minimum wage, have the option of
being paid the entire 2/3rds.
Currently the amount of Trivial
Pension is KShs 5,308.
RATE OF RETURN AND BENEFIT
STATEMENTS
 Rate of return declared by Trustees for
the financial year ending 30th June 2011
was 3%. This was relatively lower
compared to the one declared in the
previous year because of the general
decline in the economic environment.
 Member’s however are requested to note
that the rate of return declared was still
amongst the best in the industry.
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.
PRE-RETIREMENT
SEMINAR
 This year’s pre-retirement Seminar has
been scheduled to be held in August/
September 2012 for members who are
remaining with ten (10) years or less to
retire and who have not undergone the
training.
 More information will be sent to members
at the appropriate time.
SCHEME’S OFFICES AND
CONTACTS
 The Scheme’s offices are located on
3rd 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:
Address
Telephone
Fax
E-mail
: P. O. Box 30197 – 00100 GPO, Nairobi
:2730835, 2730945/6
:2730836
: [email protected]
Thank You

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