AKI raises alarm over plan to freeze interest payments on pension assetsThe Kenya Association Insurers is breathing fire over a recommendation to freeze interest payment on pension assets for two years. Read Now »It concludes that the Insurance Company would therefore have no authority at all in relation to the proposed moratorium on interest payments on pension scheme funds. The scheme funds belong to scheme members who appoint scheme trustees who then become the legal owners of the scheme funds and hold the funds on a fiduciary basis for the benefits of the members. The Insurance Company would, therefore, have no authority at all about the proposed moratorium on interest payments on pension scheme funds. Deferring interest payments on existing government bonds would greatly affect the insurance company’s obligations to retirees who are drawing their monthly pension payments from existing annuity contracts.

Source: Standard Digital May 06, 2020 14:50 UTC