Local Government Act - Kenya Law Reports

Rev. 2010]
(b) payment of benefits due under the Trust;
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(c) additional or ex-gratia payment to any member or any dependant
of a member.
(6) The moneys for the time being comprising the reserve account may
be held by the Board in such accounts or invested by them as authorized under
these Rules or in accordance with the Act.
44. The Board shall pay to the Authority, or the relevant tax authority,
on due dates, the annual levy or taxes prescribed under the Act or any other
relevant law.
part v—deterMINatION OF truStS
45. (1) The trusts of the scheme shall determine on the occurrence of
any of the following events—
(a) if all the sponsors cease to exist or, for any other reason, cease to
operate, and some other statutory bodies or organizations shall not
have been empowered to undertake the rights and obligations of
the sponsors hereunder;
(b) if the Board decides to issue a winding up notice to the sponsors,
on receiving actuarial advice that the contributions being paid by
the sponsors, or reasonably expected from them in future, are so
low as to prejudice seriously the long term financial position of
the Trust;
(c) if, for any other reason, it is found necessary to wind up the
Trust;
(d) if the trust period expires;
(e) if the last eligible surviving beneficiary dies or becomes ineligible
for benefits under these Rules.
(2) Notwithstanding paragraph (1), if the Board, with the approval of
the Authority, deems fit, the trusts shall not be wound up but shall be continued
as Closed Schemes, subject to these Rules, but the liability of the sponsors to
contribute to the Trust shall cease upon the occurrence of the event causing the
winding up of the Trust.
(3) In the event of the sponsors receiving such notice as is referred to in
paragraph (1) (b), the Authority shall direct the Trust to submit a remedial plan
within thirty days from the date of such direction, setting out the arrangements
intended to eliminate such deficiency.
(4) The remedial plan referred to in paragraph (3) may be approved if
found to be consistent with the provisions of the Act, and if the arrangements
set therein shall raise the funding level of the Trust, but where the remedial plan
[Subsidiary]
Levies and taxes.
Determination of
trusts.