Reprieve for affected members of collapsed TUK pension scheme

TUK pension scheme members expect payments to begin on October 16 after a standoff with the liquidator. [Courtesy]

The standoff over the collapsed Staff retirement benefit scheme of the Technical University of Kenya (TUK) pension scheme has been resolved after the liquidator agreed to start disbursing funds to members of the scheme from Friday, 16th October, as earlier agreed.

The affected 1,820 members had planned to camp outside the Central Provident Fund (CPF) offices on Monday, demanding that all their updated pension statements be released and that their payments be made.

According to them, they were to receive their updated pension statements by 28th September before CPF Financial Services revised the deadline to 5th October.

As of Monday, they had yet to receive the statements.

After deliberations were held between the liquidator, a representative from CPF and the leadership of the Universities Academic Staff Union UASU and the Kenya Universities Staff Union KUSU TUK chapters, CPF committed that the new statements would start being issued on Wednesday.

"As of the day after tomorrow, which is Wednesday, everyone will get their statements in whichever way you agree: email or hard copy." George Okioma from CPF said.

George Okioma, who is the director of operations and marketing at CPF, said that the process of reconstructing new statements from 2010 to July 2024 had been finalised, and he apologised for the delay that had become a serious bone of contention.

"Members, I know we may have overpromised on the date of 28th but we are on course. On 16th October, payments will start being settled," he added.

Insolvency practitioner Long'et Terer, who is the liquidator in charge, confirmed that money will start trickling into the accounts on Friday, adding that the process of liquidating the assets was ongoing.

"All the assets in the scheme consist of cash in banks, shares within the Nairobi Stock Exchange and bonds. The fund manager has been directed to get the best possible price." Terer said.

He promised to share with them the liquidation plan.

While also thanking them for their patience, he warned that pressuring the fund manager could lead to significant losses, especially on the bonds that are being liquidated.

"As we sell all those treasury bonds, it does not mean that all of them will be sold off at one go. If members resolve to take a lower return, that is also a possibility." Terer added.

Members still reiterated their frustrations, complaining that they were not under any pension scheme as things stood since the fund collapsed in 2024.

Their demand was therefore to get their money so that they would invest elsewhere.

"We do not want any further meetings. We have met enough. We now demand action and delivery. We want our money!" said Eng. Patrick Ogutu, KUSU TUK branch Secretary.

On the issue of which members should be given priority during disbursement, since other affected members had already retired, the members unanimously agreed that no one was more equal than the other and therefore there would be no priority groups.

UASU TUK Chapter Secretary Fred Sawenja warned that failure to honour the commitments would be met by another strike.

"If they do not honour, members know what we usually do," Fred said.