Board of Trustees, The Management, Staff Members of Machakos University, The Scheme Service Providers and Scheme Administrator, Investment Manager and Fund Auditor

Ladies and Gentlemen, Good morning!

It gives me great pleasure to give some few remarks in this 1st Annual General Meeting for Machakos University Staff Retirement Benefits Scheme. I wish to thank the Scheme Board of Trustees and the Service Providers for the wonderful job you are doing.

Ladies and Gentlemen,

The main purpose of an A.G.M is not only to comply with the legal requirements, but to also give scheme members a chance to review the scheme’s annual activities and performance. In this time and error, industry developments indicate that the retirement equation has changed, and retirees can no longer rely on employer provided pension alone, but they need to boost their own personal savings as well, through pension schemes. This means post-retirement life is now a personal responsibility and as your employer we urge you to increase your savings for retirement.

Governance of the Scheme

The Schemes’ governance structure has remained as stipulated in the Retirement Benefits Act 2000 and the Trustees have continued to operate within the approved legal framework. In supporting the Scheme, both the Sponsor and the Trustees play key roles. The Trustees have a general oversight role that ensures the fund increases in value and meets set objectives. Machakos University Board of Management shall remain supportive of the governance initiatives by the Board of Trustees of the Scheme that is aimed at enhancing the growth of members’ savings within the provisions of the legislative framework.

Launch of the first Strategic Plan for Machakos University Pension Scheme

Ladies and Gentlemen,

As prove that our Scheme is a stride ahead, we are here to witness the launch of the first 2018-2023 Strategic Plan for the Machakos University Pension Scheme which outline on how to grow and sustain the Scheme Funds and embrace technology for efficiency and effectiveness

Growth of the Scheme

Members, it is worth noting that that the growth of the Scheme in monetary terms is approximately Ksh.362 Million as at 30th June 2018. This has been realized through the tremendous support of both the Board of Trustees and the Service Provider.

Benefits of a Pension Scheme

Ladies and Gentlemen,

We cannot underestimate the importance of a pension scheme. Pension scheme encourages savings by employees in different ways. The payroll deductions ensure contributions are directly withheld from the employee’s pay, thus making it much easier to save. At the same time, other savings come as tax savings which reduce taxable amounts, while low management fees of the scheme are a saving to individual members.

Due to the need for sound investment of your funds a pension scheme allows access to leading investment managers. The funds offered through group plans are run by managers whose expertise is recognized in the industry and who are continuously reviewed and monitored by the insurers and regulators. Another valuable and yet very important role of Pension scheme is that it gives investment solutions for everyone. Whether you are an expert or a novice in financial matters, group plans offer various approaches for meeting your retirement objectives.

The Role of University in Support of the Pension Scheme

Ladies and Gentlemen,

The role of Machakos University as the sponsor of the scheme cannot be down played. Machakos University automatically enrolls all eligible employees and makes contributions to the pension scheme. It supports the scheme to realize its objectives and vision through the board of Trustees by providing the necessary infrastructural support like the provision of pension office etc. The University provides general oversight role to ensure members’ funds increase in value and meets set objectives.

The Pension Scheme should review sensitization of its members through Member Education Days that are meaningful.  The Scheme should also ensure members fill and update their beneficiary forms to avoid litigation and disputes that we have witnessed from time to time.

In my conclusion, I would like to reiterate that the university’s commitment and support for the scheme as per the law will continue.  We shall accord the space, the freedom and autonomy to fulfill the business of the Scheme as we have done before.  In return we expect competitive annual rates of return on members investment.

With these few remarks, I wish you all fruitful deliberations and a successful Annual General Meeting.

I reiterate the fact that we are committed to safeguarding and enhancing the  welfare  of  our  staff  members  and  wish  to  call  upon  all  our stakeholders and other collaborating institutions to accord the Board of Trustees of the Scheme maximum support as we work towards the realization of the vision “A Secured Dignified Life in Retirement” in line with ensuring a secure future for the scheme members.

Thank you and May God Bless You.