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Telposta Sh14bn pension dispute back to tribunal
The Teleposta pension scheme has been in dispute with the group of individuals over the total pension the scheme paid them, sparking legal disputes for more than 10 years now.
A dispute between the Telposta Pension Scheme and 949 of its pensioners has taken a new twist after the Court of Appeal overturned a decision to pay them Sh13.9 billion and referred the matter back to the Retirement Benefits Appeals Tribunal.
The pension scheme has been in dispute with the group of individuals over the total pension the scheme paid them, sparking legal disputes for more than 10 years now.
The dispute stemmed from a complaint of underpayment by some 601 former Telkom employees but Friday last week marked a crucial step for the case when Court of Appeal judges Daniel Musinga, Gatembu Kairu and John Mativo overturned a High Court decision awarding a total of 949 pensioners Sh13.9 billion, and sent the matter for fresh hearing before the Retirement Benefits Appeals Tribunal.
“Accordingly, we allow this appeal, set aside the judgment and decree of Chigiti, J. (the High Court Judge) delivered on 16th August 2023 in JR No. 141 of 2017, and substitute it with an order allowing the appellant’s (Telposta Pension Scheme) notice of motion dated 11th April 2017," the Court of Appeal judges said in a decision issued last week.
"We also set aside the 1st respondent’s (Retirement Benefits Appeals Tribunal) decision dated 13th February 2017 and remit the dispute back to the 1st respondent for re-hearing."
Initially, 601 pensioners of Telposta complained to the Retirement Benefits Authority (RBA) that their pension benefits were not calculated properly.
Telposta said that each of the pensioners had been paid their due share and opposed their Sh13.9 billion claim. The RBA in a 2012 decision sided with Telposta Pension Scheme.
The pensioners, with an additional 348 others, moved before the Retirement Benefits Appeals Tribunal which, in a February 2017 decision, directed Telposta to pay the pensioners Sh13.9 billion, a figure the scheme protested would collapse it.
“Telposta shall pay interest on the sum found unpaid from the date it fell due until payment in full, which shall not be less than the investment interest declared by the 2nd respondent in the years that the benefits remained due,” the had tribunal ruled.
The High Court in August last year affirmed the tribunal’s decision, triggering another appeal by Telposta before the Court of Appeal as the scheme argued that a directive to pay Sh13.9 billion would collapse it.
The scheme asked the Court of Appeal to refer the matter back to the tribunal for re-hearing, complaining that the High Court judge failed to consider that the decision by the tribunal would have significant ramifications on other members of the scheme.
“Counsel (for Telposta Pension Scheme) further submitted that Telposta Pension Fund cannot survive the payment of the sum of Sh13.928 billion,” court documents note.
The scheme holds that it has already paid all the pensioners their dues and that what they are asking for goes against the laws guiding the administration of its pension funds.
Court of appeal judges last Friday while overturning the decisions by the High Court and tribunal, said the judge had erred in his decision.
“The learned judge erred in limiting himself to the process, procedure and manner in which the impugned decision was arrived at, and failed to appreciate that the appellant (Telposta) had invoked Section 11 of the Fair Administrative Action Act,” the appellate judges ruled.
“It is also our finding that the learned judge erred in holding that he lacked the jurisdiction to conduct a merit review in the circumstances of this case. Therefore, this appeal is merited, and on this ground alone, it is hereby allowed. Having so found, we find no need to determine the other issues,” they added.
