About Us

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.

HOW DO THE SCHEMES WORK?

DEFINED BENEFITS (DB) SCHEME REGISTERED 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;

  1. defer his/her total benefits payable until he reaches at least fifty years of age, or
  2. be paid 50% of the benefits as lump sum and the balance of 50% be preserved in the scheme until attainment of at least age 50 or
  3. transfer his total benefits or 50% of the benefits to another RBA-approved pension scheme or to their new employer’s pension
  4. Scheme.

Retirement Benefits

a) A member who retires from the scheme if he/she is at least 50years of age may opt for;

  1. a pension for life using total accrued benefits, or
  2. lump sum up to a third of accrued benefits and the remaining two thirds, pension purchase for life

b) A member who is incapacitated while still in service may be retired due to ill-health.

Death Benefits

  1. If a member dies in service or retirement, pension is payable to your spouse for his/her life.
  2. In case of death in deferment, deferred amount with interest is paid to your nominated beneficiary in lump sum.

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.

DEFINED CONTRIBUTIONS (DC) SCHEME 2006 REGISTERED TRUSTEES

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.

  1. The level of contributions you make to the scheme
  2. The contributions that the employer makes on your behalf that are allocated to your retirement savings.
  3. The investment returns credited to your Member Account is converted to pension.
  4. The level of voluntary contributions you make to the scheme

What benefits does the scheme offer?

The benefits of the scheme are comprehensive and include:

When you retire

  • A pension for life from a registered insurance company
  • An optional cash lump sum at retirement(if trivial pension)
  • Early and late retirement options
  • A pension on retirement due to ill-health

If you die while you are employed by the employer

  • An optional pension for your beneficiaries bought using your Member Account from a registered insurance company
  • A lump sum payment to your beneficiary(ies)

If you leave before you retire

  • Preservation of your Member account until attainment of at least 50years of age
  • A transfer to another approved pension arrangement; or
  • A return of your own contributions with interest plus 50% of employers contributions with interest
  • The 50% of Employer‘s accumulated contributions on your behalf are preserved in the scheme and may be transferred to your new employer‘s pension scheme, to a preservation scheme or to an individual personal pension plan.

Additional benefits

  • Tax relief on your contributions subject to Income Tax limits
  • You may be permitted to transfer any other pension benefits into your member Account
  • You can make additional voluntary contributions to boost your pension

Limits on Benefits and contributions

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?

USE OF MEMBER SELF SERVICE (MSS)

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!!

Have a question or concern?

Please feel free to call us on or Email us through:- 0709- 740000