Man loses bid for Sh1 million retirement benefits

Freddie Odhoji Jumar alleged that his retirement benefits had been unlawfully withheld by Posta. [iStockphoto]

The Employment and Labour Relations Court in Kisumu has dismissed a dispute between Freddie Odhoji Jumar and the Postal Corporation of Kenya over Sh1 million retirement benefits due to lack of jurisdiction.

Justice Christine Baari concluded that since Jumar was no longer an employee of the Corporation and the dispute fell outside the purview of the Employment and Labour Relations Court.

"In my view, and guided by the foregone provisions of the law, a dispute concerning payment of pension benefits held under a pension scheme, falls under the mandate of the Chief Executive Officer of the Retirement Benefits Authority and not the Employment Court," she said.

"It is also clear that the provisions of the Retirement Benefits Act enumerated in paragraphs 20 and 21 do not place a pension dispute within the jurisdiction of this court. Sections 46 and 48 of the RBA Act go on to stipulate where such a dispute would lie, and which certainly, is not before this court."

Jumar had filed a suit against the Corporation seeking retirement benefits totaling Sh1,049,580, with interest dating back to June 30, 2021.

He alleged that his retirement benefits had been unlawfully withheld by Posta.

Despite summons being served, the Corporation neither entered an appearance nor filed a response to the claim, resulting in the suit proceeding undefended.

Jumar, who had worked for the Postal Corporation since September 29, 1982, rising to the position of Head Postmaster until his voluntary retirement on October 31, 2020, argued that despite retirement approval and acknowledgement of his entitlement to benefits, the Corporation failed to remit the owed amount.

During the hearing, he presented his case, testifying in support of his claims and submitting relevant documents. Jumar further argued that the delay in payment had caused him undue hardship.

"There is no demonstrable reason why the Corporation has not remitted the retirement benefits. It is unconscionable why the money was not forthcoming, yet the Corporation acknowledged the sum via a letter dated March 31, 2023. It is unjustified to withhold terminal dues irrespective of the mode of separation with my employer." he said.