Britam Asset Managers has officially launched the Britam Ngao Umbrella pension scheme, a multi-employer retirement benefit scheme.
The scheme pools funds from various employers, invests and manages these funds collectively to ensure its members benefit from retirement savings.
By joining the Britam Ngao Umbrella pension scheme, businesses can bypass the complex and often costly process of registering a stand-alone retirement benefits scheme. This is particularly advantageous for SMEs, which may find the registration requirements daunting.
Additionally, the scheme’s structure allows companies to easily join and adhere to its rules for the provision of retirement benefits to their employees. By pooling funds from various employers, the scheme benefits from economies of scale, leading to higher investment returns. This pooling nature not only ensures cost savings but also allows members to enjoy improved investment outcomes, driven by a diversified investment strategy.
The scheme is designed to offer cash lump sum benefits to members upon their retirement. It is also registered under the Retirement Benefits Authority (RBA) and with the Kenya Revenue Authority (KRA) for tax exemption. It also complies with NSSF Tier 2 Contributions, further easing the compliance burden for participating employers.
Investing in the Britam Ngao Umbrella Fund a number of benefits for employers. For starters, there are no setup costs or joining fees, making it a cost-effective solution. The application process is straightforward, requiring only an application form, member details, and the setup of contributions. Employers are also relieved of the fiduciary responsibilities typically associated with managing a retirement scheme, allowing them to focus on their core business activities. Moreover, the scheme is compliant with NSSF Tier 2 Contributions, adding another layer of compliance and benefit for employees.
Speaking at the launch, Barack Obatsa, Britam Asset Manager’s CEO said, “The Britam Ngao Umbrella Pension Scheme is designed to support businesses in their growth journey by taking on the complex aspects of retirement planning, allowing them to focus on their core operations. Our aim is to ensure that every employee in Kenya has access to a secure, cost-effective retirement plan, and this scheme is a significant step towards achieving that goal. By signing up to this scheme, SMEs will not only enhance staff loyalty and retention, but will also provide a competitive package that attracts new talent.”