The functions of the Retirement Benefits Authority (RBA) include:
To regulate and supervise the establishment and management of retirement benefits schemes. To protect the interest of members and sponsors of retirement benefit schemes. To promote the development of the retirement benefits industry. To advise the Minister for Finance on the national policy to be followed with regard to the retirement benefits sector. To implement all government policies relating to it, i.e. the Retirement Benefits Authority. Perform any other functions conferred on it by the Retirement Benefits Authority Act or by any other written law. Ensure schemes come into compliance with the Act.
Receiving and addressing members¡¦ complaints with regard to their schemes or benefits. General education campaign using print, radio, TV, newsletter, website. e. t. c. Specific education e. g Trustee Training Seminars.
Compiling statistics and carrying out research on relevant issues in the industry. Making policy recommendations to the government.
Question 1b) Explain the main types of pension schemes in operation in Kenya giving the advantages and disadvantages of each.
The main types of pension schemes are;
XOccupational Pension Scheme
XGroup Personal Pension Scheme
XStakeholder Pension Scheme
Occupational Pension Scheme
This scheme is set up by the employer for the employees and run by the trustees. The employer must contribute towards the scheme. In salary-related schemes, administration costs can be paid by the pension fund or by way of an annual management charge. The scheme actuary determines how much the employer needs to contribute. In money-purchase schemes, the employer pays a fixed amount determined by the scheme rules, with the fund paying an annual management charge for any administration costs not covered by these conditions.