Local Government Act - Kenya Law Reports

396 CAP. 265 Local Government
[Rev. 2010
[Subsidiary]
Funding levels and
actuarial valuations.
Payments to
employer.
Reserve account.
41. (1) The Board shall obtain from the actuary—
(a) actuarial valuations of the Trust at intervals of not more than three
years on dates arranged in consultation with the actuary;
(b) an actuarial statement in accordance with the Act.
(2) A copy of the actuary’s report shall be sent to the sponsors, the
Commissioner and the Authority within three months of the end of the actuarial
valuation of the Trust.
(3) Within thirty days from the date of receipt of an actuary’s report, the
Board shall notify the members of the availability, at the registered office of the
Trust, of the report or an abstract thereof, and shall thereby invite the members
to inspect the report or the abstract at the registered office.
(4) The actuary shall submit a report of the actuarial valuation to the
Authority.
42. No payment shall be made to the sponsor without the written consent
of the Authority, except only where the payment is in respect of accrued benefits
payable to a member or dependants of a member, through the sponsor, in the
event of a member’s death, termination of service or retirement at the request
of a member or beneficiary.
43. (1) The Board shall maintain an account to be known as a reserve
account.
(2) The reserve account shall be used to hold—
(a) all investment income prior to the distribution of such income to
the members of the Trust; and
(b) all investment gains surpluses or losses.
(3) Any benefits or part thereof which is not utilized in providing benefits
for the members or their dependants or personal representatives, for any reason,
shall be held in the reserve account.
(4) In the event that any benefit falling due to any member or pensioner
or to any person by reason of the death of a member is not claimed within six
months after the date on which such entitlement became due, then the benefit
shall be held in the reserve account.
(5) When so required by a member during the currency of the Trust or
upon winding up, the Board may make payments out of the reserve account
for any of the following purposes—
(a) advance payment to an insurance company for future premiums on
any policy under the Trust for the benefit of a member;