I.    Portability
The benefits under the new contributory Scheme are portable and therefore an employee can transfer accrued pension benefits from one registered scheme to another irrespective of the sector (private or public).

II.  Access to Benefits before Retirement
Members of the scheme may access retirement benefits earlier than a prescribed Retirement Age by reason of dismissal, resignation, ill health, mortgage finance, advancement for the purchase of a residential house, immigration, death or any other circumstance as may be prescribed in the Act.

III. Regulation of the Scheme
The new contributory Scheme shall be regulated by the RBA.

IV. Tax Relief
The Contribution is deducted from the salary before tax is calculated. Members can enjoy tax benefit to a maximum of the lesser of Kshs.20,000 or 30% of pensionable emoluments.

V. Life Insurance and Disability Cover
The Act provides for a Life Insurance Policy that has disability benefits in favour of every member of the scheme, for a minimum of five times of the member’s annual pensionable emoluments.

VI.    Terms of Commutation
Under the Scheme a member can withdraw up to a maximum of a third of the accumulated savings upon retirement. A member can also withdraw all the additional voluntary contributions with accrued interest.

VII.    Member Involvement
The Scheme ensures involvement of the employees and pensioners in the management of their retirement fund through participation in the Board of Trustees in accordance with the Act.

VIII.    Access to contributions to purchase a Residential House
The Retirement Benefits (Mortgage Loans) (Amendment) Regulations 2020 provides for a member to access up to 40% subject to a maximum of Kshs.7million of accumulated contributions to purchase a residential house.