Kenya: Britam launches new pension plan aimed at SMEs

By InstinctBusiness Aug 6, 2024 0

Britam Asset Managers have launched a new pension scheme aimed at providing retirement security for Small and Medium Enterprises (SMEs) and the broader informal sector. This initiative targets these groups to ensure they have access to reliable retirement benefits.

Dubbed “Britam Ngao Umbrella Pension Scheme”, the plan also gives salaried individuals an option to re-direct their Tier 2 NSSF contributions, which applies to pensionable earnings above Sh7,000, up to Sh36,000.

The multi-employer retirement benefit scheme by Britam Asset Managers Kenya Limited pools funds from various employers, invests and manages these funds collectively to ensure its members benefit from retirement savings.

Britam states that businesses can avoid the complicated and often expensive process of setting up a stand-alone retirement benefits scheme.

This is especially beneficial for Small and Medium Enterprises (SMEs), which may find the registration requirements challenging, as mentioned on Wednesday.

The scheme provides cash lump-sum benefits to members upon retirement, offering financial security.

It is registered with the Retirement Benefits Authority (RBA) and the Kenya Revenue Authority (KRA) for tax exemption, ensuring compliance and financial advantages.

Additionally, the scheme meets the requirements for NSSF Tier 2 Contributions, making it easier for participating employers to stay compliant.