One important point to note is that membership to the Schemes is ONLY for KenGen employees. There are various classes of membership which will form the structure on what as a member needs to know, we will focus on the 2 major classes that is active members and pensioners.
Active Members
These are members who are contributing to the Scheme where their contribution is 10% of their basic salary and the sponsor KenGen PLC contributes 20%. This applies to both DB & DC Scheme. For the DC Scheme members can choose to make additional voluntary contributions to boost their benefits and as an additional benefit get more tax relief up to Kshs 20,000 on their 10% contribution. This amount of up to Kshs 20,000 is not taxed on PAYE. Members in both schemes receive yearly statements which give a clear indication of one’s benefits. DC Members of both Schemes can access their benefits after they have resigned, terminated from service or on retirement grounds.
Active Members
Pensioners/Retirees
These are members who have retired from service after attaining the age of 50 – 59 for early retirement or 60 for normal retirement. One can also be retired on medical grounds with medical evidence to the satisfaction of the Trustees that he/she is incapable by every reason or any infirmity of mind or body of discharging the duties of their office and that the infirmity is likely to be permanent. There is also late retirement which is only for cases of people living with disability as guided by the National Council for Persons With Disabilities (NCPWD). For DB members pension is paid by the Scheme and for DC members one takes an income draw down or an annuity from a registered insurance company. Pension is tax free when one attains the age of 65 years. The Scheme has also negotiated for a post-retirement medical cover which is provided on voluntary basis.PensionersPensioners/Retirees
Pension and other benefits can also be paid to beneficiaries.