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Umbrella Pension Plan

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Umbrella Pension Plan

The fund provides a solution to organizations that find setting up a Retirement Fund and continuously complying with the complex legal and statutory demands a challenge in both monetary and human resource cost.

The Fund also makes it possible to delegate the demanding role of trusteeship (with its legal and statutory liabilities) to a team of professionals at no additional cost while at the same time saving you the hassle of having to appoint new trustees whenever a trustee leaves.

The Fund enables individuals to experience premium service from a leading insurance company in Kenya in terms of superior customer service and guaranteed investment income plus 100% protection of the accumulated value of retirement savings.

Our Scheme is duly registered by Kenya Revenue Authority (KRA) and the Retirement Benefits Authority (RBA) as a Retirement Fund Solution for individuals or groups of individuals.

Advantages and Features of umbrella Pension Plan

1. it is Hassle Free to the Employer: The scheme completely frees the employer from the hassles of establishing and overseeing the running of the scheme. It does this by providing an all-round package of the following services

Full Administration, Custodian and Investment Service which includes: Installation and maintenance of member and beneficiary records, contribution and fund balance records, processing of withdrawal, death or retirement benefits, member education service, filling of ongoing compliance records to RBA and KRA, arranging for the members to attend an annual member’s meeting, issuance of member fund statements and scheme statement to the employer, custody of retirement savings and prudent investment of the same including 100% guarantee of the accumulated value.

What is left for the employer to do is only to ensure timely payment of monthly member contributions to BRITAM, update ovn new entrants (employees) and exits

2. Immediate Access to Tax Relief Benefits: Individuals who join the Fund gain immediate access to all the tax privileges of a registered retirement scheme which includes

  • Tax deductible contributions up to Kshs.20, 000.00 (current limit) per month per member.
  • Tax relief on death, withdrawal and/or retirement benefits up to the applicable limit as of the date of payment.
  • Full tax exemption on the investment income.
  • Tax Free Withdrawal Benefits: Currently, a plan holder can cancel the policy and obtain a refund of the full accrued value net of any applicable withholding tax. The law allows a tax free withdrawal benefit equal to Kshs. 60,000.00 per year of membership, up to a maximum of Kshs. 600,000.00. In event of death the accumulated fund is payable as a lump sum to the nominated beneficiary.

3. Flexibility: The customer is free to decide on the following:

  • The monthly contribution percentage by employer and employee. Employees are free to make Additional Voluntary Contributions.
  • Choice of fund: A pension fund, whereby a maximum of 1/3 of the accumulated amount is payable as a lumpsum and 2/3 rd in the form of regular periodic payments. A provident fund, whereby the entire amount is paid in a single lumpsum.
  • Normal retirement age.

Any additional riders which are offered to customers of the Fund at discounted rates. These include Group Life

4. Cost Optimization - Funds under the Guaranteed Fund equitably share the running costs thereby giving customers’ competitive added value for money. The costs are:

  • Administration fee: 1.5% of contributions received during the year. This is waived for the first calendar year. No administration fee is charged on umbrella scheme.
  • RBA levy: 0.2% of the fund as at 31 st December is payable to the regulator
  • Audit Fee: as per appointed auditor. No audit fee is charged on the umbrella scheme
Performance umbrella Pension Plan

Our services include fund management with superior guaranteed Fund performance in terms of

  • Minimum guaranteed interest rate of 5%
  • Guarantee on Capital against reduction

We constantly endeavor to achieve attractive investment income without compromising security of funds as provided for by the law.

Below is a history of declared interest rates since 2012.

Service Standards umbrella pension plan

Our processes are fully automated by use of software known as Fund master. Interest is credited into the members’ accounts on a daily basis from the date of receipt of contributions. Other addition services

  • Scheme Relationship Manager
  • Choice of Mode of Payment
  • Claim Settlement in 10 days
  • Annual General Meetings (AGM) & Member Education
  • Trustee Meetings – where applicable
  • Annual Member Statements
  • Pre-Retirement Training
  • Financial Planning Training
  • Pension Backed Mortgage

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