Accountability of trustees of retirement benefit schemes -A survey of selected retirement benefits schemes in Kenya

Abstract

The objectives of the study were to identify establishments and appointments of board of trustees (BOT) and reporting practices of retirement benefits schemes in Kenya. The study primarily aimed at determining the levels of accountability of trustees of retirement benefits schemes in Kenya. Full compliance to the Retirement Benefits Authority (RBA) Act 1997 by retirement benefits schemes is in the final stage implementation. The establishment of board of trustees has been effected by all the schemes studied. And most schemes have started submitting their annual reports to the RBA. It was established from this research that smallest BOT is made up of three trustees and the largest thirteen trustees. The sponsors and the members are represented as per the requirements of the RBA Act 1997 (two thirds and a third respectively). Both the members and the members Organizations elect the members' representatives. The annual reports of the schemes are submitted and availed to the members and RBA within the statutory time. The extent of disclosure is above average (over 50%) and that the schemes prepare and present their reports as per the RBA requirements and guidelines. The overall accountability levels of the schemes is average and that level of accountability cannot be attributed to type of scheme, number of trustees, or the sponsors of the scheme, The practices and accountability levels vary from scheme to scheme and are not attributable to any of the factors above.