The Machakos University Staff Retirement Benefits Scheme herein referred to as “the Scheme” was established on 01 January 2013 as a Defined Contribution Pension Scheme and is governed by a Trust Deed & Rules dated November 2013.
The Scheme is approved by the Kenya Revenue Authority for purposes of tax exemption in accordance with the provisions of the income tax Act. In addition, the Scheme is registered by the Retirement Benefits Authority and is compliant with all the regulations. The contribution rates are at 10% of basic salary from employees and 20% of Salary from the employer. Upon reaching early retirement age of 50, a member is entitled to be paid the benefits as both lumpsum and monthly pension.
The Schemes’ Governance structure has remained as stipulated in the Retirement Benefits Act 2000 and the Trustees have continued to operate within the approved legal framework. In supporting the scheme, both the Sponsor and the Trustees play key roles. The Trustees in particular have a general oversight role that ensures the fund increases in value and meets set objectives.
The 2018–2022 strategic plan outlines an ambitious plan on how to grow and sustain the scheme funds and embrace technology for efficiency and effectiveness. To do this, five key pillars have been identified. This being the first strategic plan by the Scheme, challenges in terms of resources and capacity are likely to be experienced. In addition, the Scheme could also be faced with exogenous challenges as a result of the current dynamic economic and socio-political environment and Government policies. However, with the strong support and co-operation among the Trustees and the Management the expected obstacles and constraints can be overcome.
The commitment demonstrated by the various stakeholders this far is commendable. However, as a measure of injecting efficiency in the operations of the scheme, the Trustees will establish systems for monitoring and evaluation that shall objectively measure the performance of the service providers and ensure the Scheme remains true to its course.
Ultimately, this plan hinges on the realization of the vision “A Secured Dignified Life in Retirement” in line with ensuring a secure future for the scheme members.
I wish to call upon all our stakeholders and other collaborating institutions to accord the Board of Trustees of the Scheme maximum support as we navigate through this road-map.
STRATEGIC PLAN – (2018 – 2022)
The Machakos University Staff Retirement Benefits Scheme Strategic Plan 2018- 2022 outlines the strategic vision and goals that will help the Scheme realize its full potential and better fulfill its mission of safeguarding scheme funds through prudent investments and promoting member savings culture.