The Co-operative Bank has bagged a lucrative State deal to manage over Sh. 100 billion in pension contributions that are held by held by the Public Service Superannuation Scheme (PSSS).
Co-op Bank was selected together with two other lenders, NCBA Bank Group and Stanbic Bank.
“We have a clear roadmap and have already done contracts with a fund manager, three custodians, and a fund administrator. This has been done through a competitive process with the contracts being awarded through the scheme trustees. All we are doing on our part is to monitor that each party is playing its role,” PSSS chief executive officer Dr. Jonah Aiyabei said.
According to documents from the National Treasury, the three custodian banks will carry out the pension management services for a period of three years which will be renewable on expiry by mutual agreement for a further period of three years depending on performance.
These banks are expected to maintain all the schemes’ assets and produce quarterly financial management reports on the fund. They will also carry out statistical analysis of the investments and returns on investments from pension funds in their custody and provide the data to the fund administrator.
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According to Dr. Aiyabei, the PSSS is currently receiving over Sh. 3.5 billion in monthly contributions three years after the start of these contributions.
“We are now second after the NSSF (National Social Security Fund) with around Sh. 105 billion in assets value driven by both member and employer contributions. Combined, we are getting around Sh. 3.6 billion in contributions every month,” said Dr Aiyabei.
He explained that since establishment, the PSSS assets under management have crossed the Sh. 105 billion mark and attracted more than 422,000 contributing members.
This scheme has been under the management of asset management firm GenAfrica
