This is a retirement benefits scheme set up by the sponsor (Employer) for the benefits of it employees (Members):
- 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.