Standard Chartered Agrees to Pay Last Minute Pension Claimants

Standard Chartered Bank has agreed to include a group of former employees who made a last-minute request in the payout for past undervalued pensions, alongside the 629 colleagues already awarded compensation.

The lender said all the claimants are undergoing a verification exercise that will determine the basis of their claims, estimated at Sh7 billion.

The group, referring to themselves as the “Non-629 Former Employees” in contrast to those who pursued the initial tribunal case, argue that they too belonged to the same pension fund that switched from a defined benefit to a defined contribution scheme in 1999.

“Our first priority is to handle the ones that the court ordered us to pay, then handle the rest that have a claim to ensure there is an amicable settlement for everybody involved,” said Standard Chartered chief executive Kariuki Ngari.

The original 629 employees successfully challenged the bank in court, contending that their pension savings had been undervalued during the 1999 transition. The Supreme Court upheld rulings by the Tribunal, High Court, and Court of Appeal, finding that the bank had unlawfully applied the wrong actuarial factors during the conversion.

Initially, the bank rejected a request by the Non-629 group—comprising more than 325 individuals—arguing their claims lacked legal merit since they were not part of the original suit. However, the claimants insisted that excluding them would amount to discrimination and contradict both the Supreme Court judgment and constitutional protections.

Mr. Ngari said all claimants are being asked to provide identification documents and bank account details before payments can commence. “We have over 20 verification clerks to ensure the process is smooth and avoid delays, especially since many have travelled long distances to be served,” he said.

Before the current truce, the Non-629 claimants had demanded a fresh valuation of the pension schemes as of January 1, 1999, by an independent actuary appointed in consultation with their representatives and the Retirement Benefits Authority (RBA). They also sought revised communication to members, recalculation of balances with compounded returns, and a properly constituted members’ meeting to explain the implementation plan and oversight mechanisms.

Standard Chartered said it has sufficient financial buffers to cover the tribunal-ordered liability, signaling its intent to finally close a pension dispute that has dragged through the courts for 16 years.

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