Welcome to Retirement Benefit Authority   Click to listen highlighted text! Welcome to Retirement Benefit Authority Powered By GSpeech

 

NOTICE TO THE RETIREMENT BENEFITS INDUSTRY

CHANGES CONTAINED IN THE 2017/2018 BUDGET

 

Following the presentation of the Budget Statement for 2017/2018 by the Cabinet Secretary for the National Treasury, the Retirement Benefits Authority would like to bring the following changes that affect the Retirement Benefits Authority and the retirement benefits industry to the attention of stakeholders:

 

 

Issue

Change

Implications

Clause/

Effective date

CHANGES TO THE RETIREMENT BENEFITS ACT,1997

Trustees Remuneration

 

 

Approval of trustees’ remuneration by members during the annual general meeting after every three years.

Provides for approval of  trustees’ remuneration by members after every three years

The Finance Bill 2017

 

 

Requirement with regards to trustees

Section 26 amended in subsection (2) by adding a new paragraph

immediately after paragraph (d) to provide that:

(e) does not comply with the guidelines or practice notes issued by the Authority

No person shall be a trustee of any scheme fund if such person does not comply with guidelines and practice notes issued by the Authority.

The Finance Bill 2017

 

 

Failure to submit statutory returns

Section 34  amended by inserting a new subsection immediately after subsection 4(B) as follows:

 

(4C) Despite the provisions of subsection (4B), the Authority shall require a person who fails to

submit any statutory return by the due date to the Authority to pay a penalty of one hundred thousand shillings and where the returns remain un-submitted, the person, in addition to the prescribed penalty, shall pay a further fine of one thousand shillings for each day or part thereof during which the offence continues provided that a person who pays a penalty under this

subsection shall not be prosecuted in court for the same

offence

A penalty of KES 100,000 for late submission of statutory returns and an addition of KES 1,000 for each day or part during which the offence continues.

The Finance Bill 2017

 

PROPOSED CHANGES TO THE RETIREMENT BENEFITS REGULATIONS

1.      CHANGES TO THE RETIREMENT BENEFITS (INDIVIDUAL RETIREMENT BENEFIT SCHEMES) REGULATIONS

The deadline for the submission of quarterly record of contribution

Regulation 15 paragraph (1) amended to provide that:

Every scheme shall maintain or cause to be maintained a quarterly record of contributions in the prescribed form and the original record shall be submitted to the Authority by the fifteenth day of the month following the end of the quarter.

The deadline for the submission of the quarterly contribution record has been extended from the 10th day to the 15th day after the end of the quarter.

 

Legal Notice No. 49 of 2017

 

Effective 3rd April 2017

2.      RETIREMENT BENEFITS (OCCUPATIONAL RETIREMENT BENEFITS SCHEMES) REGULATIONS

Board of Trustees Meeting

Regulation 8 amended to provide that:

1.       Not more than six  months shall elapse between the date of one meeting and the next;

2.       The trustees may meet at least two times in every calendar year

3.       A trustee who fails to attend two consecutive meetings shall be disqualified from serving as a trustee.

The requirement to meet at least once quarterly has been repealed. Trustees will now be required to meet at least once every six months.

 

 

 

 

 

 

Legal Notice No. 50 of 2017

 

Effective 3rd April 2017

Appointment of an administrator

 Regulation 8 amended to provide that:

A Corporate Trustee shall not appoint an administrator who is related to the Trust Corporation by way of ownership, directorship or employment

This is necessary to avoid conflict of interest

Legal Notice No. 50 of 2017

 

Effective 3rd April 2017

Reporting by custodians

Regulation 10 paragraph (7) amended to provide that:

 A custodian shall, at the end of each quarter of the financial year, submit to the Authority a report detailing the assets of the scheme fund and contributions received for the quarter.

Custodians will no longer be required to submit a list of active membership; instead they will be required to give details of contributions received for the quarter.

Legal Notice No. 50 of 2017

 

Effective 3rd April 2017

3.      RETIREMENT BENEFITS (UMBRELLA RETIREMENT BENEFITS SCHEMES) REGULATIONS, 2017

Gazettement of  the Retirement Benefits (Umbrella Retirement

Benefits Schemes) Regulations, 2017

The regulations include the following:

1.       Registration and sponsorship of an umbrella scheme

2.       Types and management of umbrella schemes

3.       Financial Provisions and statements

4.       Investment guidelines

5.       Levy

6.       Transfer and Amalgamation of schemes

7.       Transition provisions

 

Introduction of specific  regulations to govern umbrella schemes.

Legal Notice No. 55 of 2017

 

Effective 3rd April 2017

Note:

  1. Stakeholders to note that changes contained in the Finance Bill will take effect when the Bill is enacted.
  2. Stakeholders are advised to obtain full details of these changes from Legal Notices NOs. 49, 50, 55, 3rd April 2017 and the Finance Bill 2017.

Retirement Benefits Authority (RBA) is ISO 9001:2008 Certified


 
Click to listen highlighted text! Powered By GSpeech