This is a retirement benefits scheme set up by the sponsor (Employer) for the benefits of it employees (Members):
Features:
The Scheme is set up under irrevocable trust.
Can either be a pension scheme of a provident fund
Trustees are appointed to manage scheme affairs
Maximum number of trustees is 9 & minimum number is 3
Half of the trustees are nominated by members
The scheme is registered by both the Retirement Benefits Authority and the Kenya Revenue Authority.
Any Employer is Eligible to join the scheme.
The Scheme can be contributory where both the sponsor and the members contribute at some prescribed rates or none contributory where only the employer contributes.
The scheme enables the Employer and the members to enjoy tax exemptions.
Umbrella Pension Scheme
This is a scheme that has been set up by Pioneer Assurance for Participation by employers who do not have or have not opted to set up an occupation scheme.
Features:
Registration and Compliance needs is met by Pioneer Assurance
Trustees charged with the responsibility of managing the affairs of the scheme are appointed by Pioneer Assurance.
The Participating Employers sign deed of adherence to the existing trust deed and rules.
The Employer through the deed of adherence chooses the scheme design and type.
The employers under the umbrella scheme retain respective identities.
