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Retirement Benefits Authority orders trustees to revise Kenyatta National Hospital pension dues
Friday August 11 2023
Kenyatta National Hospital. FILE PHOTO | JEFF ANGOTE | NMG
The Retirement Benefits Authority (RBA) has ordered the trustees of Kenyatta National Hospital (KNH) Staff Superannuation Scheme to recalculate the pension dues of workers who retired between 2011 and 2017.
In a letter to the chairman, board of trustees, the RBA ordered the trustees to recalculate the dues as per a judgment obtained by 115 former employees at the Retirement Benefits tribunal.
Read: KNH ordered to pay ex-staff Sh123m dues
The former employees had sued the trustees of the scheme seeking unpaid lump sum benefits amounting to Sh123 million and for the scheme to adjust the monthly pensions to the correct amount which was Sh2.5 million as at November 2017.
The tribunal issued a judgment on April 22, 2021, but the former employees went back to the RBA accusing the trustees of using a wrong formula against the tribunal’s decision.
“In light of the foregoing, the Trustees are hereby directed to re-calculate the pension of all the complainants in this matter based on tribunal judgment dated 22nd April 2021,” RBA’s chief executive Charles Machira directed.
Read: 160 parastatals fail to remit Sh20 billion from pensioners
The former employees filed a complaint in December 2017 against the trustees, saying an amendment made in 2012 to the original trust deed and rules dated July 17, 1991, changed the definition of final pensionable salary.
The amendment, they said, resulted in a reduction of their accrued benefits.
