S/No.

Old pension Scheme

The new Contributory Scheme

    1.

Retirement benefits are paid on a set formula

Retirement benefits are paid from the accrued contributions and investment income

    2.

Not portable since accrued benefits are not transferrable

Portable since accrued savings are transferrable

    3.

Pension Vesting period is 10 years and on attainment of 50 years of age

Vesting period is 5 years no age limit

    4.

There is no employee participation

Employees participate through representation in the Board of Trustees and Annual General Meetings

    5.

Payment of the benefits is from the Consolidated Fund.

Payment shall be from the Fund

    6.

Pension commutation is limited to a ¼ of the accrued pension

Pension commutation is limited to a 1/3 of accumulated credit

    7.

Dependant pension payment is prescribed and paid only to a widow and children

Annuity is paid as per principal member preference.

    8.

Managed by the National Treasury

Administered by a Board of Trustees and regulated by the Retirement Benefits Authority

    9.

The accrued retirement benefit cannot be accessed while in service, hence not applicable for personal development.

•       Allows a member to access 40% of the accrued savings to purchase a residential house.

•       Members can access their accumulated savings upon exit subject to the vesting period

    10.

Employee does not contribute

Employee contributes promoting a saving culture

    11.

Benefits are defined and cannot be enhanced

Employee can enhance the benefits through additional voluntary contributions