The Defined Benefits (DB) Scheme is an occupational Scheme of KenGen staff and has 2,298 members with KES 7.6 B in Assets Under Management (AUM). The DB Scheme was established under irrevocable Trust Deed and Rules and commenced operations on 1st January 2000. The objective of the DB Scheme is the “provision of retirement benefits to employees of the sponsor and the participating employers upon their retirement or earlier withdrawal and to the dependents of deceased members” as provided in the Trust Deed of the Scheme. The DB Scheme was closed to new members in 2012.
To be a leading DB Scheme in the region that provides best-in-class service to its members.
To deliver on its commitments through prudent investments
The National Treasury had issued a Treasury Circular No.18 of 2010 dated 24th November 2010 requiring changes to the public service retirement benefit schemes. To be 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 31st December 2011 (the ‘Closure Date’).
- A new defined contribution scheme, the KenGen Defined Contribution (DC) Scheme 2012 (the ‘DC Scheme’) was established effective 1st 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.