Britam Asset Managers Kenya Limited, a subsidiary of Britam Holdings has launched a new multi-employer pension scheme to help businesses plan for staff retirement, especially small and medium enterprises.
Dubbed Britam Ngao Umbrella Pension Scheme, it brings together funds from several employers, which are jointly invested and managed to provide members with a cash lump sum at retirement.
“The Britam Ngao Umbrella Pension Scheme is designed to support businesses in their growth journey by taking on the complex aspects of retirement planning.
“This allows 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,” said Barack Obatsa, CEO of Britam Asset Manager.
“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” he added.
The scheme offers several benefits to employers, including no set-up or entry fees, a simple application process, and relief from the fiduciary responsibilities associated with managing a pension scheme.
However, employers must follow certain procedures, including passing a resolution to contract out Tier 2 contributions and completing the necessary forms for approval by the Retirement Benefits Authority.
“Once approved, employers can start remitting their Tier 2 contributions to the Britam Ngao Umbrella Pension Scheme, ensuring compliance with the statutory requirements.
“The scheme is ideal for any registered entity with at least one employee, smaller schemes seeking to avoid the operational complexities of running a stand-alone scheme, and employers looking to enjoy the benefits of pooling resources,” Britam said.
Under the NSSF Act employers and employees each contribute six percent of employee’s earnings, making a total contribution of 12 percent.
