Closed KCM Pension Scheme gives birth to 2 new Pension Trust Schemes

KONKOLA Copper Mines Plc has closed its pension scheme for employees with immediate effect.

The decision follows the splitting of KCM into two companies.

This is according to an internal memo dated April 29, 2021, signed by KCM Plc Pension Trust Schemes trustee Beatrice Mutambo.

Following the splitting of KCM, employees were placed on redundancy and are expected to start getting their terminal benefit.

“Reference is made to the management brief dated 28 December 2020 by KCM plc management on restructuring of the operations of KCM plc and to your letter of redundancy which was effective 31 January 2021 for KCM. As you may be aware, before 31 January 2021, your pension benefits arrangements were managed under the KCM plc Pension Trust Scheme. However, following the restructuring of the sponsoring company, KCM plc has equally been restructured after due consultation between management and union leaderships. This has resulted in the KCM Pension Scheme becoming a closed Scheme with no more new pension contributions going into it. Two new Pension Trust Schemes have been initiated out of it, and are in the process of registration. One of which is the Konkola Mineral Resources Limited, your new employer,” reads the memo in part.

“Based on the forgoing, we wish to advise you, as employees of Konkola Mineral Resources Limited, that a new Pension Scheme is in the process of being set up, which will be called Konkola Mineral Resources Limited Pension Trust Scheme. Please note that the pension scheme is being set up for you on account that it is a condition of employment and service.”

However, KCM will only pay its members 40 per cent while 60 per cent will be liquidated for longer term investment.

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