Retirement Benefits Authority puts rogue pension schemes on notice
- RBA has warned pension funds against failure to remit member contributions and file returns.
- The regulator also urged pension schemes to submit proposals to the Treasury for inclusion in policy formulation on retirement benefits.
- Pensions coverage in Kenya currently stands at 20 percent and assets retirement schemes hold are worth more than Sh1 trillion
The Retirement Benefits Authority (RBA) has warned pension funds against failure to remit member contributions and file returns in accordance with the law, adding that those found not doing so will have their licences revoked.
Chief executive Nzomo Mutuku said the RBA is monitoring some trustees and administrators who interfere with the role of the fund managers, particularly with regard to property investments.
“This creates a conflict of interest that can jeopardise the safety of members’ savings,” he said.
Speaking during the sixth annual retirement conference at Neptune Hotel in Kwale, the RBA boss said the regulator would continue playing its supervisory role.
“We have had to penalise some scheme service providers for non-compliance with contribution remittances to schemes and scheme returns … where required, the authority will unwaveringly apply the sanctions provided under the Retirement Benefits Act and the subsidiary legislation, including the removal of trustees and revocation of the licences issued to service providers for a period of five years,” warned Mr Mutuku.
The State agency also urged the pensions players in attendance to use the two-day conference to network and share ideas on improving regulation, supervision and growth of the retirement benefits industry.
“This information enables the authority to understand challenges facing the industry so that when we review and develop laws and guidelines, they are relevant to industry needs,” he said in a speech read on his behalf by Anne Mugo, chief manager, market conduct at the RBA.
The regulator also urged pension schemes to submit proposals to the Treasury for inclusion in policy formulation on retirement benefits.
According to the RBA, pensions coverage in Kenya currently stands at 20 percent and assets retirement schemes hold are worth more than Sh1 trillion, which is about 14 percent of the gross domestic product.