Lack of accountability creating mistrust among Pension fund members
Pension Fund Trustees and administrators have been urged to show greater accountability to members by ensuring they have access to the right messages.
During the official opening of a three-day Pension Trustee, Sundeep Raichura, Chief Executive Zamara Group pointed out that adequate member communications were the greatest failures within the pension schemes.
“Many trustees of pension funds presume that the two key points when communication is relevant is on joining and on leaving. In reality, individuals need information and counselling throughout their journey as pension fund members.” Mr. Raichura said.
Raichura called on the Government to seriously reconsider the current tax deductible limit on pension contributions of only Ksh.20,000 a month and have this substantially increased given that it had not been increased for almost 20 years.
He implored trustees to consider the alternative investment space, including investing in private equity and infrastructure as a means of diversifying their assets and getting better returns.
According to the Retirement Benefits Authority (RBA) Chief Executive Nzomo Mutuku, there was need for continuous training of scheme trustees on risk management and possible impact and likely changes in the pension sectors as a result of the Covid 19 crisis.
”There is a need for schemes to prudently address risks emerging from the COVID-19 crisis, including implementation of adequate contingency plans and steps to mitigate losses to reduce the impact on beneficiaries to the extent possible.”
The three-day event has brought together various stakeholders within and without the industry to unpack the challenges facing the industry, sailing through the pandemic and how to increase penetration and awareness and inculcate a savings culture among Kenyans.