Applicability of non-financial defined contribution scheme compared to financial schemes in Kenya

Date
2015
Authors
Murgor, Vanessa Cherotich
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Over the years, there has been an advancement in the technology used in various procedures that aid in early detection of certain conditions and informed prevention of others . Improved sanitation and food supply to various regions as well as better nutrition has led to improved mortality and thus more individuals are living longer than expected. This, therefore, means that the government makes pension payments for even longer periods of time. Having a stable scheme funding is paramount to.ensure that members of the scheme are catered for after retirement. This paper looks into the conventional schemes used for the public service pension schemes while assessing the financial status of the scheme previously applied and study if the NDC scheme would provide a flexible and stable scheme. Using publicly available data, possible assessments are made using the NDC framework and a sample of the population to establish the sustainability of the scheme over the long run.
Description
Keywords
Non-financial defined contribution scheme (NDC), DB, Financial stability, financial strain
Citation