National Bank has offered early retirement to its permanent and pensionable employees aged 35 years and above and who have served the bank for a period of at least five years.
The voluntary early retirement (VER) scheme targeting 150 employees follows a similar one the bank implemented in 2014, which saw 200 employees leave the bank under an early retirement plan.
Mr. Musau said the early retirement plan seeks to align the staff headcount with strategic needs of the bank.
The bank’s management has during the transformation period, been focusing on reinforcement of the organization’s Corporate Governance Structure and strengthening of both the Risk and Credit functions.
The Board approval of the voluntary early retirement shows their support and confidence in the bank’s management team. Board members lauded the transformation and progressive agenda of the lender under Mr. Musau’s leadership through the pillars of innovation, customer service, sustainable business and corporate governance among others.
The VER plan offers a severance pay equivalent to one (1) month’s salary for each completed year of service, however, for applicants aged 50 years and above, the severance pay will be at the rate of two (2) month’s salary for each full year remaining to the retirement age of 60.
The bank will also offer to the successful applicants a one-month salary in lieu of notice, purchase of leave days earned but not taken up to the last day of employment, and pension benefits in accordance with NBK Pension Scheme and Retirement Benefits Authority rules.
In addition, successful applicants will continue to enjoy their medical cover for the remainder of 2018 and enjoy a discretionary loan rebate of 20% if their outstanding loans are cleared within 6 months. They will also continue servicing staff loans in line with staff facilities Policy.
“We believe the scheme is employee-friendly and is good for the bank too, thus a win-win deal for both parties,” said Mr. Musau.
Mr. Musau further shared that the move will see National Bank enjoying improved cost management benefits in the medium term. On the other hand, the bank will offer entrepreneurship and financial management trainings to the successful applicants to empower them in future personal financial planning.
The process is expected to be concluded in the coming week and successful applicants will be released from the bank’s employment effective 1st February 2018.