We have two Schemes, Defined Benefits (DB) Scheme, ‘old scheme’ and Defined Contributions (DC) Scheme, ‘new scheme’. The main purpose of the schemes is to provide cash benefit and pensions for permanent and pensionable employees of Kenya Pipeline Company upon retirement or withdrawal from employment as well as a relief for the dependents of the deceased employees. Efforts have been put in place by the Board of Trustees and the scheme‘s stake holders towards realization of this dream. The DB Scheme was established under an irrevocable trust declared from 1st January, 1977 and was closed to new entrants and accrual of benefits with effect from 30th June, 2006. Upon the closure of the DB scheme, the DC Scheme was born and established under an irrevocable trust from 1st July 2006, which is its commencement date, and the governance of the scheme is vested on the Board of Trustees.
A Member’s benefit in the DB Scheme is formula based and depends on the number of years in service up to 30th June, 2006 to a maximum of twenty years, annual pensionable salary as at 30th June, 2006 growing at a certain percentage per annum, age at leaving service, and sex of a member.
Leaving employment before 50 years of age
For a member leaving service before attaining age 50years (resignation, dismissal, etc.), he/she may choose to either;
a) A member who retires from the scheme if he/she is at least 50years of age may opt for;
b) A member who is incapacitated while still in service may be retired due to ill-health.
In case an eligible spouse is not available, the benefits are paid out to the member’s children until the last child attains 21years or to a third party (e.g. uncle, aunt, brother, sister, etc.) for sixty months depending on the member’s nomination.
Every month you will contribute a percentage of your salary into the scheme. Over the period until retirement (or until you leave the scheme( if earlier), your contributions, along with contributions paid by the Employer on your behalf that are allocated to your retirement savings, are invested and credited in your Member Account.
Your Contribution + Employer Contribution = Your Member Account
Your Members Account will be invested by the Trustees together with those of their members and grow broadly in line with the returns achieved each year on the investments. The value of member accounts can go down or up.
At retirement the value of your member account will be used to provide you with an optional cash lump sum together with a pension for you and your dependants.
Your Member Account = Cash lump sum + Monthly Income
The amount of your benefits at retirement will depend upon four basic factors.
All aspects of the scheme are subject to legislation as laid down by the Retirement Benefits Act (RBA), 1997 and the Rules and Regulations made under this Act. In addition, the Income Tax Act imposes restrictions on the tax treatment of contributions in excess of income Tax allowable limits on contributions. You will be notified if any of these affect you.
Have you nominated beneficiaries for both schemes? If your answer is no, then who will benefit from your hard-earned money?
Do you remember who you nominated? How much did you allocate to each beneficiary? Do you want to see your member statement? Can you project your benefits perhaps to 5years from now? Have you checked if your details are correct like date of birth? Well, you can check all these and more from our Member Self Service (MSS) on our website. (www.kpcrbs.com)
To access MSS, go to our website, www.kpcrbs.com, click on the old couple photo, put the details of your national ID, KPC email address and click on register. A password will be sent to your outlook. Put the password and click on sign in. You will be given a chance to change your password. Have fun around the portal!!
Please feel free to call us on or Email us through:- 0709- 740000