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Local Government Act - Kenya Law Reports

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Rev. 2010]<br />

<strong>Local</strong> <strong>Government</strong> CAP. 265 407<br />

pensionable emoluments for that contribution year, or two hundred and forty<br />

thousand shillings (240,000) times the number of full-year members of the Trust,<br />

reduced by the aggregate contributions in respect of such members under these<br />

Rules, whichever is less, or such greater or lesser amount as may be prescribed<br />

from time to time under the Income Tax <strong>Act</strong>.<br />

74. Save as otherwise provided in these Rules, a member’s contributions<br />

to the Trust, including instalments of contribution, advances or loan recoveries,<br />

shall be made by deductions from the salary or pension payable to the member,<br />

as the case may be, or in such other manner as the Board may determine.<br />

75. From the entry date and every subsequent year thereafter, each<br />

sponsor or voluntary individual member shall pay to the Trust such deficiency<br />

contribution certified by an actuary in respect of that sponsor or voluntary<br />

individual member.<br />

76. (1) Any sponsor or member who fails to remit the amounts payable<br />

into the Trust under any provision of these Rules shall be liable to pay, in<br />

addition to the principal amount, a compounded interest at the rate of one point<br />

two five per cent (1.25%), or any such other greater or lesser rate as may from<br />

time to time be determined by the Board or the Authority, either generally or<br />

in respect of a specific sponsor.<br />

(2) The Board may, in addition to the action taken under paragraph<br />

(1), report persistent default by the sponsor to the Authority, who shall prefer<br />

criminal charges against the officers or the sponsor concerned.<br />

(3) The Board may, upon first receiving actuarial advice, exercise its<br />

discretionary powers to grant a waiver on any interests applicable, or take any<br />

other action intended to relieve any sponsor from the effect of paragraph (1) on<br />

good grounds supported by satisfactory evidence in that respect.<br />

77. (1) All sums due to the Trust shall be recoverable as a debt due<br />

to the Trust and, without prejudice to any other remedy, shall be a civil debt<br />

recoverable summarily.<br />

(2) An action for the recovery of contribution or interest under this<br />

rule may be instituted and conducted by the Managing Trustee or any other<br />

authorized officer of the Trust on behalf of the Board.<br />

part vII—beNeFItS<br />

78. The following are the benefits payable under the Trust—<br />

(a) normal retirement pension;<br />

(b) early retirement pension;<br />

(c) survivors’ pension;<br />

Cap 470.<br />

Deduction of<br />

contributions.<br />

Deficiency<br />

contributions.<br />

[Subsidiary]<br />

Interest on delayed<br />

contributions.<br />

Recovery of delayed<br />

contributions.<br />

Descriptions of<br />

benefits.

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