Moi University Pension Scheme (MUPS) was established on 1st July, 1991 to provide pension benefits to its members, who were employees of Moi University.At commencement, the Scheme design was a Defined Benefit (DB) Scheme whereby benefits were fully underwritten by the Sponsor such that any investment dynamics could not affect the promised benefits. This therefore attracted and retained membership to the scheme while retaining qualified staff for the Sponsor.
Due to cost escalation and institutional financial constraints, it became necessary for the Sponsor to redesign the pension plan with a view to continue providing same benefits at competitive cost. This therefore resulted in the DB being redesigned to a Defined Contribution (DC) with a Hybrid underpin.
This came into effect on 1st January, 2005. The contribution rates were 15% from the employer and 7% from the employee.