In Brief
Issac T.M., a bank employee, retired in 2007 after nearly 29 years of service and became eligible for a self-financing pension scheme. The bank delayed processing his pension due to disciplinary proceedings and withheld the employer's contribution. The bank argued that para 5(2) of the Pension Scheme allowed pension payment only from the month when the employer's contribution was remitted. The Supreme Court held that an employee's entitlement to pension accrues on retirement under para 19 of the Scheme, independently of when contributions are remitted. Para 5(2) was ultra vires the Constitution. The Court directed payment of arrears from February 2007 with interest, setting aside the High Court's dismissal.</summary_100>
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