MAASAI MARA UNIVERSITY
REGULAR UNIVERSITY EXAMINATIONS 2014/2015 ACADEMIC YEAR
FOURTH YEAR FIRST SEMESTER
SCHOOL OF BUSINESS AND ECONOMICS BACHELOR OF HUMAN RESOURCE MANAGEMENT
COURSE CODE: BHR 411
COURSETITLE: RETIREMENT & PENSION
DATE:31ST AUGUST 2015 TIME: 2.00PM – 4.00PM
INSTRUCTIONS TO CANDIDATES
Question ONE is compulsory
Answer any other THREE questions
This paper consists of 2 printed pages. Please turn over
Question one
a. The enactment of the Retirement Benefits Act (‘RBA’) (1997) and the establishment of the retirement Benefits Authority (‘the Authority’) in 2000 marked the beginning of a regulated, organized and more responsible retirement benefits sector in Kenya. Discuss (15mks)
b. Kenya’s system of retirement schemes embraces four components namely the NSSF, the Public Service Pension Scheme, Occupational Retirement Schemes and Individual Retirement Schemes. Distinguish these scheme types on the basis of their establishment, membership, regulation and funding. (10mks)
Question two
a. The tax regime for pensions in Kenya is the EET regime. Discuss. (10mks)
b. Distinguish between fixed annuities and variable annuities (5mks)
Question three
Write short notes on the following:
i. Final salary schemes (3mks)
ii. Deferred annuities (4mks)
iii. Mbao Pension Plan (4mks)
iv. Money purchase schemes (4mks)
Question four
a. The system of retirement schemes overall is an important part of the financial sector. Discuss (10mks)
b. Giving specific examples, discuss the concept of occupational pension schemes in Kenya (5mks)
Question five
a. Explain three circumstances under which gratuity is paid. (6mks)
b. When you invest in an annuity you also choose how you want your eventual payouts to be calculated. Explain the following payout options:
i. Income for guaranteed period (3mks)
ii. Income for life with a guaranteed period certain benefit (3mks)
iii. Joint and survivor annuity (3mks)
