The Retirement Benefits Authority (RBA) is set to establish an integrated service platform to help avert the loss of retirement benefits by members.
The regulator is looking to hire a consultant to conduct an actuarial study to determine the appropriate integrated pension management system.
That platform is expected to host an impressive information repository that can be accessed globally facilitating various research activities on members of retirement benefits schemes.
“The system integration would come with benefits such as interconnectedness, allowing ease of portability of benefits, facilitating supervision of schemes, enabling the establishment of patterns and trends in data from different sources and improving pension administration in general,” RBA says in a notice.
The sector comprises more than 1,067 active retirement benefit schemes and a membership of about 3.4 million.
The schemes, both in the public and private sector, hold information about their members in different standalone administration and management systems.
Tracing members’ contributions, especially for those that changed employments and have benefits in multiple schemes has been among the sector’s biggest challenges.
Members have also had to deal with the erroneous calculations of benefits arising from incomplete records or disjointed information about the member.
“Again, some members are not updated frequently on their monthly contributions, and the retirement benefits schemes which receive and invest the contributions are sometimes not known to the members,” says RBA.
The consultant will conduct a survey among stakeholders in the retirement benefits industry in Kenya to assess the viability of an integrated pension management information system.
Small schemes are poised to benefit from the system integration by eliminating the costs associated with deploying a lone system for pension information management.