Frequently Asked Questions

TELPOSTA PENSION SCHEME AND TELPOSTA PROVIDENT FUND
Will members be provided with copies of audited accounts?
  • a) Regulation 30 (4) (a) of Retirement Benefits Regulations, 2000 provides that a Scheme shall conspicuously display in the office of the Scheme a notice notifying the members that the audited accounts together with the Trustees’ and investment reports are available for inspection.
  • b) Regulation 30 (4) (b) of Retirement Benefits Regulations 2000 provides that a Scheme shall send to its members a summary of its audited accounts together with the member’s benefits statement.

TelPosta Pension Scheme and TelPosta Provident Fund Board of Trustees has complied with the law by placing a notice that the accounts are available at the Scheme/Fund office for members’ perusal, the accounts are further uploaded in the Scheme website www.telpostapension.org and summarised copies sent to all members.

The Retirement Benefit Regulations require that Annual General Meetings are held to enable the Trustees inform members of various matters as defined by the regulations and enable members raise any pertinent matters that relate to their scheme. There is no requirement for members to pass any resolutions.

Regulation 3 (i) of the Retirement Benefits (Occupational Retirement Benefits Schemes (Amendment) Regulations, 2005 provides that no defined benefit scheme shall have less than three Trustees and the number of the Trustees nominated by members shall not be less than one third of the Board of Trustees. This is captured in clause 11 (a) of TelPosta Pension Scheme Trust Deed.

TelPosta Pension Scheme has complied with this Regulation.

Telposta Pension Scheme is a Defined Benefit arrangement, and the Benefits are underwritten/guaranteed by the Sponsor (Telkom Kenya Limited). Therefore, the sponsor bears all the risks of the Scheme and that is why the representation is skewed in favour of the bearer of the risk (The Sponsor).
Telkom Kenya Limited {The Founder”} is the current Sponsor of both TelPosta Pension Scheme and TelPosta Provident Fund. The Scheme/Fund Rules state that any successor to Telkom Kenya Limited will become the new Sponsor at that point. In the event that any entity purchases Telkom Kenya Limited, they would typically also take over responsibility for the Scheme/Fund and the role of the Founder.
A statutory actuarial valuation of the Scheme is carried out once every three years. A disclosure of the results of the latest actuarial valuation are included in the audited accounts of the Scheme.
The Retirement Benefit Regulations provide that Trustees should be appointed to a term of 3 years which is renewable once. Therefore, the maximum term that a Trustee can serve is 6 years. This Regulation applies to all Schemes registered by Retirement Benefits Authority.
The investments of the Scheme/Fund are carried out in compliance with the Regulations set by the Retirement Benefits Authority and in compliance with the Scheme/Fund’s Investment Policy Statements which the Trustees develop. The Trustees rely on external Fund Managers to make the necessary investment decisions on their behalf and the Fund managers provide reports to the Trustees after every 3 months.

The Retirement Benefits Regulations requires that the Trustees must appoint the Services of professionals known as Fund Managers to assist them in making investment decisions. Members do not have an input in the investment decisions being made but will receive reports from the Fund manager at the AGM where they will have an opportunity to raise any questions touching on investments.

Rule 5 of the Consolidated Trust Deed & Rules of TelPosta Pension Scheme dated 05/08/2010 provides that any member of the Scheme shall be entitled at any reasonable time to inspect a copy of the Trust Deed and Rules of the Scheme and any amendment made thereto.

These Rules are available at the office and members are welcome to inspect it as they are entitled to do so. In addition, a members booklet summarising in a non-technical language the provisions of the Trust Deed has been prepared. The Scheme has also uploaded a copy of the Trust Deed and Rules in its website.

TelPosta Pension Scheme Trust Deed & Rules provides that dependants pension is payable for a period of 5 Years after the death of the pensioner.
TelPosta Pension Scheme Trust Deed & Rules provides that dependants pension is payable for a period of 5 Years only.
Trustees communicate to members through their last known postal addresses. In addition, Trustees have also managed to get contact telephone numbers of most pensioners and beneficiaries and communication is also sent via SMS. Trustees also use advertisement in newspapers and send emails to members who have provided email addresses. Most Scheme/Fund information has been uploaded in the Scheme website.
The working hours are 8.00 AM to 5.00 PM. However, the offices are open to serve members between 9.00 AM and 3.00 PM. Members are welcome to visit the offices and are free to write to the secretariat to raise any matter regarding their benefits.

This is a Scheme where no further benefits accrue after the Scheme’s closure on 1st December 2007. All active employees of the Sponsor as at 1st December 2007 were invited to participate in an Umbrella Scheme called Alexander Forbes Individual Retirement Fund, which is a Defined Contribution Plan.

The liabilities of the Scheme are liabilities in respect of pensions in payment, unpaid/unclaimed benefits and deferred members with entitlement to deferred benefits.

Administrative expenses are an important and unavoidable part of the budgets of both the Scheme and Fund. The administrative expenses are met from the resources of the Scheme/Fund.

Under the Scheme Rules if a deferred member dies before commencement of pension, the deferred pension is payable to the beneficiaries of such a member for a period of five (5) years beginning from the date of death.

In calculating the benefits payable to the beneficiary, the Scheme allows for revaluation of the deferred pension at the rate of 4% p.a. from 01/12/2007 to the date of member’s death.

Further, the Scheme allows for a pension increase at the rate of 3% p.a. with effect from 01/7/2008.

The Trustees act at all times in accordance with the law. The law on preservation states that the earliest age at which members can access locked-in benefits is 50 years and that is upon written request. Therefore, early access to that portion of the benefits is not allowed.
Yes, if the pensioner is earning a Trivial Pension as defined by the Retirement Benefits Regulations. Members who retired before 8th June 2005, when the trivial pension rule took effect, do not qualify to be paid a one-off lump sum.

Members have the following rights: –

  1. To inspect audited accounts and actuarial valuation reports
  2. To nominate/amend beneficiaries.
  3. To be issued with annual membership benefits statement or certificates.
  4. To attend Trustees Annual General Meetings.
  5. To be paid their pension benefits when they are due for payment. 
  6. Appoint member nominated Trustees.
Pension is the term commonly used to describe the regular payments a person receives upon retirement. For TelPosta Pension Scheme, a pension is payable for the life of the retired member and five years thereafter to the eligible spouse/beneficiaries of a deceased member who are entitled.

For pension benefits, the first K. Shs 300,000 per annum or K Shs 25,000 per month of pension received by a resident individual is exempt from tax. However, the balance of pension in excess of K. Shs 300,000 per annum or K Shs 25,000 per month will be taxed under the withholding tax rates. Details are available from the Secretariat.

For cash benefits, an amount of K Shs 60,000 per year of service subject to a maximum of K Shs 600,000 is exempt from tax. However, the amount in excess of K. Shs 600,000 will be subject to tax.

Cash lump sum retirement benefits due to members who are above 65 years are now taxable, but the monthly pension is exempted from tax.

Rule 10 (b) of the Deed of Amendment dated 05/08/2010 states that the Trustees shall have the right to review the level of pensions beyond the automatic 3% p.a. and subject to the consent of the Founder, may direct that each pension be further increased.

The amount of the increase shall be determined by the Trustees and Founder in consultation with the Actuary.

Owing to the national spread of the members, the Regulator wrote to the Scheme in a letter dated 13th August 2004 authorizing the Trustees to proceed and organize the regional meetings with Scheme members with a view to reach more members to disseminate information to them regarding the affairs of the Scheme.
No. The Act does not relate to pensioners but to members who are actively in employment.
The Rules are set by the Sponsor/Employer {Telkom Kenya Limited}

Retirement Benefits regulations provide that the Trustees can meet at least two times in every year. The law does not set the maximum number of meetings that can be held.

TelPosta Pension Scheme Trustees have complied with this requirement and even went further to ensure that the Trustees remain prudent by setting up the maximum number of meetings that will be conducted in a year to enable the Trustees discharge their responsibilities to its membership.

The Trust Secretary of the Scheme is not a Trustee, but an employee of the Board of Trustees engaged under employment terms.

The basic Agenda in Retirement Benefits Annual General Meetings are as stated in the Act and namely: –

  • Opening Remarks
  • Report on Recent Changes in Retirement Benefits Sector
  • Presentation of Audited Accounts
  • Reports on Investments
  • Remuneration of Trustees
  • Members; Questions and Answers

Clause 27 of both TelPosta Pension Scheme and TelPosta Provident Fund rules provide that unless otherwise terminated under the provisions hereof or the rules, the Trust hereof shall continue until the death of the last member who having been born on or before the commencement date and dies whilst still a member or such longer period as the law may allow. This is referred to as the Trust period.

According to Clause 32(v) of TelPosta Pension Scheme and TelPosta Provident Fund Trust Deeds the Trusts of the Scheme and Fund shall be determined at the expiry of the Trust period.

Any balance of the Funds of the Scheme remaining after the purpose of this clause have been fulfilled shall with the consent of the Commissioner be paid by the liquidator to the Founder any such refund shall be charged to tax in the hands of the Founder.

Yes. The benefits for TPS deferred members are calculated after allowing for 4% annual revaluation over the period of deferment up to age 55. The TPF deferred members’ balances are loaded with interest declared each year based on the investment yield.

TelPosta Pension Scheme (TPS) has a Memorandum of Understanding (MOU) with the National Hospital Insurance Fund (NHIF) that came into operation in May 2012.

This MOU enables TPS Pensioners to enroll with NHIF by authorizing the Scheme to deduct Monthly premiums from their Monthly Pension and remit it to NHIF so as to enable them access medical insurance cover for themselves and their declared dependents.

Yes. The affected members should write to the Scheme attaching copies of qualified Medical Practitioners Certificates indicating the medical history report

  • a) The Trustees upon receipt shall forward the request together with supporting documents to the Medical Board (Ministry of Health) for a medical opinion.
  • b) If the medical opinion is that the member is sick such that if he/she was still working with the employer, he/she would be unfit for service, the member’s benefits shall be paid.

TelPosta Provident Fund rules provide that if a member by reason of promotion, transfer or other reason is transferred to a pensionable office and therefore becomes eligible for admittance into the TelPosta Pension Scheme, then the member shall forfeit all claim to benefits accrued in the Provident Fund in the form of his accumulated credit which shall be paid into the Scheme.

The Member’s provident Fund service shall be taken into account as pensionable service when calculating his benefits.

Rule 9 of TelPosta Pension Scheme and TelPosta Provident Fund Trust Deeds states as follows:-

The Trustees covenant with the Founder:-

  • To manage and administer the Scheme/Fund in accordance with the terms of the Trust Deeds.
  • To pay out from or provide under the Scheme the pensions and other benefits prescribed by the Rules; and
  • To comply with the provisions of the Deeds and Rules
  • To comply with the provisions of the RBA, the Income Tax Act or any other legislation in force relating to the management of the Scheme/Fund investment yield.

The Trustees have a fiduciary responsibility to all the beneficiaries of the Scheme/Fund including the pensioners and the deferred members and hence to treat all beneficiaries fairly and equitably.

It is the duty of a Trustee to: –

  • act in accordance with Trust Deed and Rules
  • act in the best interest of their beneficiaries
  • act impartially amongst various classes of beneficiaries
  • act jointly
  • avoid conflict of interest
  • a) Providing key member data to Trustees
  • b) To observe and perform such of the provisions of the Trust Deed and Rules as are to be observed and performed by the Employer.
  • c) Pay to the Trustees, or as they shall direct on behalf of members such sums as the Trustees shall direct as may be necessary from time to time to ensure that there are sufficient moneys in the Fund at all times to meet all the obligations of the Trustees in accordance with the Deeds and the Rules as and when they fall due.
  • d) At least once every period of three years, Trustees seek actuarial advice from the Actuary. The Sponsor is required to make forthwith further payments in case the actuarial results indicate underfunding.

Fund Summary
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TelPosta Pension Scheme

TelPosta Provident Fund

Fund Value

Assuring your Future

The TelPosta
Pension Scheme

The TelPosta Pension Scheme was constituted vide a Trust Deed dated 1st July 1997 by then Kenya Posts and Telecommunications Corporation.

Its main purpose is the provision and custody of Pension and other retirement benefits of the employees and former employees of Kenya Posts and Telecommunications Corporation (now defunct) and Telkom (K) Limited.

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Vision

To be a model Pension Scheme and Provident Fund in Kenya

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Our Mission

To enhance financial security of our members

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Our Core Values

  • Member Centric
  • Accountability
  • Inclusivity

Our Value Proposition

The main objective of the retirement benefits scheme is to provide reasonable benefits for the members.

  • wdlGiV 1 Guaranteed Pension
  • wdlGiV 1 Sustainability of the Scheme/Fund
  • wdlGiV 1 Courteous Service

Pension Increase​
The pension escalation is guaranteed at 3% p.a. for pensions in payment.
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Fund Design
Employee contributions to the Fund were at 7.5% of salaries per annum.
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Pension Scheme

Constituted on 1st July 1997 by then Kenya Posts and Telecommunications Corporation.
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