University of Nairobi Pensions Scheme (UNPS)

What we know today as the University of Nairobi Pension Scheme 2007 is the SIXTH STAGE of a metamorphosis that began on March 1, 1955. On that day, the Royal Technical College (as the University was known then) establishment the Royal Technical College (Nairobi) Pension Scheme.

Stage two of the metamorphosis occurred in January 25", 1961 when the College was admitted to the (Commonwealth) Federated Superannuation Scheme for Universities (FSSU) which was administered from London in the UK.
On July 1, 1968 came stage three with the creation of the Superannuation Fund for Senior Staff (SFSS), later re-named Senior Staff Superannuation Fund (SSSF). The SSSF was for staff serving on academic, senior library and senior administrative terms. The pension scheme for middle grade employees was known as Retirement Benefits Scheme (RBS). Both Schemes were administrated locally by the defunct Kenya National Assurance Company (KNAC).

The fourth stage of the University of Nairobi Pension Scheme (UNPS), came into being in January 1987. On that date, the University pulled two schemes out of KNAC and merged them into one self-administered scheme.
The UNPS operated as a department of the University until October 8, 2001 when it was de-linked from the sponsor in compliance with the Retirement Benefits Act of 1997 and the Retirement Benefits Regulations of the year 2000. Since 2002 the Scheme has been operating under an elected Board of Trustees.

In 2004, the University of Nairobi (Sponsor) awarded huge salary increases to its staff and it was fundamental that the pension Scheme be restructured in order to ensure its survival, because it was then operating as a ‘Defined Benefit’ Scheme. Split service was therefore introduced, where members’ benefits would be computed taking into account pensionable service up to 30th June 2004 and service after 30th June 2004.

Effective March 2007 the Scheme converted from one operating as ‘Defined Benefit’ (DB) to ‘Defined Contribution’ (DC). This was in line with the current trend in the world, where pension schemes have been converting from DB to DC. The current name is thus University of Nairobi Pension Scheme 2007.

Previously retirees were paid monthly pension from the Scheme, however after conversion the Scheme outsourced the function of paying monthly pension by purchasing bulk annuities for the pensioners from the Insurance Company of East Africa (ICEA), effective September 2007. Members who have been retiring after 1st March 2007 have been purchasing annuities from insurance companies of their choice.

Trustees who are running the Scheme are elected to serve a three-year term renewable for another three-year term. The Scheme is internally administered by a Secretariat appointed by the Board of Trustees and led by a full-time Scheme Administrator. The Board is also mandated by the RBA Act to engage the services of professionals like the Fund Manager, Fund Custodian an Actuary.