Their lawyer argued that the retirees, who exited the bank under the early retirement programme, were supposed to be paid Sh87.4 million but were instead paid Sh36 million.
Ha also argued that the balance payable to the pensioners stands at Sh51.2 million.
The five-member tribunal said there was evidence that the pensioners had been underpaid.
The Retirement Benefits Authority (RBA) tribunal has directed the National Bank of Kenya (NBK) to pay its former staff over Sh87 million in terminal dues.
The RBA tribunal ordered the administrator of the scheme, Alexander Forbes Financial Services, to pay each of the 84 appellants their pensions which the lender had saved for them under the staff retirement benefits scheme in accordance with the law.
The five-member tribunal said there was evidence that the pensioners had been underpaid.
Their lawyer argued that the retirees, who exited the bank under the early retirement programme, were supposed to be paid Sh87.4 million but were instead paid Sh36 million.
“Each of the appellants to be paid interest for the outstanding balance (Sh51.4 million) due to each appellant (pensioner) at the rate earned by the scheme in each financial year until payment in full,” their lawyer Titus Koceyo argued.
Under the early retirement rules dated January 4th 1990, all early retirees under the voluntary scheme were to receive a lump-sum amount of Sh540,000.
The remainder of the balance was to be paid in installments in accordance with Rule 13 of the rules less what had been paid, if any.
“The appeal by the pensioners for payment in accordance with the pensions scheme and rules is hereby allowed,” the tribunal members ruled Monday.
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Note: The results are not exact but very close to the actual.
