INDIVIDUAL PENSION PLANS

Pension Fund:

This fund offers the following options:

- Use the accumulated fund credit to buy an annuity guaranteed for at least 5 years or opt for an income draw-down.

- Receive up to a third of the accumulated fund credit as a cash lump sum and use the remaining balance to purchase an annuity guaranteed for at least 5 years or choose an income draw-down.

Provident Fund:

This fund provides the following options:

- Take the entire fund as a lump sum.

- Use the accumulated fund credit to buy an annuity or opt for an Income Drawdown.

- Take a portion of the fund as a lump sum and purchase an annuity or Income Drawdown with the remaining balance.

Personal Pension/Provident Fund features include:

- Flexible contributions that can be stopped, suspended, or deferred based on financial circumstances.

- Individuals not in group schemes can save for retirement.

- Employers can contribute on behalf of members.

- Normal Retirement Age is 60 years, with early retirement at 50 years and late retirement at 65 years.

- Individuals can buy a pension/annuity at retirement.

- Members can make withdrawals from the Plan before the retirement age as per legislation.

Funds are invested in a Guaranteed Fund ensuring:

- Capital and past investment income are guaranteed.

- Return to the fund is guaranteed.

The Personal Pension/Provident Fund must be:

- Registered with the Retirement Benefits Authority (RBA) for monitoring schemes and service providers.

- Administered by a registered company and registered with the Income Tax Authority for tax benefits on contributions, tax-free investment income, allowances on withdrawal, and tax-free pension.

To join the Personal Pension/Provident Fund:

- Complete the Application Form and submit it to the pension registered company with a copy of your national identity card/passport and KRA PIN.

Contribution payments can be made by:

- Cheque, banker's standing order, salary stock order, or cash, at your own pace, whether monthly, quarterly, half-yearly, or annually.

Tax-deductible amount:

- Kshs. 240,000 per Annum (Kshs. 20,000 per month) or 30% of your salary, whichever is lower, is eligible for tax relief as per the Kenya Revenue Authority.

Ownership of the fund:

- The fund belongs entirely to you and is accessible at retirement or to your nominated beneficiaries in case of earlier death. It is portable and unaffected by changes in employment.

Adjusting contributions:

- After the first policy year, you can increase, decrease, or suspend contributions as needed.

Fund investment:

- A prudent investment approach is taken to ensure security and sustainable long-term returns while providing guarantees on the accumulated fund.

Monitoring the fund:

- You will receive an annual statement detailing the fund's performance and interest earned.

Retirement age:

- The normal retirement age is 60 years, but you can retire as early as 50 or later than 60 based on your circumstances.

Fund access at retirement:

- The accumulated fund can be used to purchase an annuity or taken as a lump sum, subject to Income Tax deductions and RBA approval.

Annuity/pension details:

- An annuity/pension provides post-retirement income through periodic payments throughout your life, purchased with the accumulated fund.

Death before retirement:

- The total fund at the time of death will be paid to dependents, with interest accruing until the actual payment.

Disability provision:

- In case of early retirement due to ill health or disability, the accumulated fund at that time is payable, with interest continuing until payment.

Early withdrawal:

- Terminating the contract and withdrawing the fund before retirement is possible, subject to taxes and locking-in of employer contribution benefits.

Investment returns:

- The registered company declares the rate of return on funds, with the credited interest rate (Net) reflected in member accounts.