The Scheme was established under irrevocable trust and commenced operations on 1 January 2000. It operates as a defined benefit pension scheme (the ‘DB Scheme’).
The National Treasury issued Treasury Circular No.18 of 2010 dated 24 November 2010 requiring changes to the public service retirement benefit arrangements. In line with this Treasury Circular, the Board of Directors of the Employer and the Trustees implemented the following changes to the DB Scheme:-
- The Scheme was closed to new entrants with effect from 31 December 2011 (the ‘Closure Date’).
- A new defined contribution scheme, the KenGen Defined Contribution (DC) Scheme 2012 (the ‘DC Scheme’) was established effective 1 January 2012.
- At the Closure Date, members of the DB Scheme who are below 45 years were required to join the DC Scheme for future accrual of benefits. Accrued (i.e. past service) benefits for these members were retained in the DB Scheme.
At the Closure Date, members of the DB Scheme who were 45 years and above were given the option of remaining in the DB Scheme or joining the DC Scheme for future benefit accrual. Those who opted to remain in the DB Scheme are hereinafter referred to as ‘Contributing Members’
Benefits for existing pensioners in receipt of pension were retained in the DB Scheme on an unchanged basis.
Benefits for deferred pensioners were also retained in the DB Scheme on an unchanged basis.
Member’s class in this scheme consist of:-
- Active members
- Deferred Members
- Dormant Members.