17 December 2009
Nairobi — More than 30 former Barclays Bank employees have sued the bank for Sh65 million.
Citing wrong calculations, the 39 former workers want the bank ordered to calculate their pension payments according to the Trust Deed and Rules of the fund.
In a suit filed Thursday, the group also wants the court to declare the conversion of their scheme from a defined benefits to a contributory scheme illegal, null and void. The conversion was effected from April 1, 2001.
Lawyer Titus Koceyo said after actuarial calculations, the former workers discovered that their pensions were incorrect.
Mr Koceyo accused the bank of paying his clients inadequate amounts contrary to the Trust Deed and Rules and the law.
The lawyer said that on March 30, 1999, the bank indicated that the members who were retiring early would be able to choose among three pension options.
But while computing the benefits payable, Mr Koceyo says, the members were restricted to two options only and "the Fund deliberately or otherwise ignored to inform members on the availability of the third option."
The High Court gave the bank 15 days to respond or a judgment will be entered against it. Also being sued are managing director Adan Mohammed and six others.