Britam unveils pension scheme for small businesses
Business
By
Graham Kajilwa
| Aug 03, 2024
Britam Asset Managers Kenya has unveiled a multi-employer retirement benefits scheme targeting small medium enterprises (SMEs).
The scheme called Ngao Umbrella Pension Scheme will pool funds from various employers and manage them collectively to ensure its members benefit from retirement savings.
By joining this scheme, businesses can bypass the complex and often costly process of registering a stand-alone retirement benefits scheme which is particularly advantageous for SMEs as they may find the registration requirements tedious.
The scheme's structure as a segregated provident fund allows companies to easily join and adhere to its rules for the provision of retirement benefits to their employees.
READ MORE
Ruto dreams of a 'new Singapore', but not when counties hold us back
Expanding access to justice through reforms
Parliament moves to end decades-long registration nightmare
Private universities under Sh 48.8 billion pending bills
Government websites hit in major cyberattack
Somali banks on Port of Mogadishu to push 24hr-economy plan
Inside Sharjah's 'Poetry Pharmacy', where healing comes in verses, not pills
South Africa announces plan to bid for Olympic Games
Trump signs bill to end record-breaking US shutdown
Wangai, Wafula lead Kenyan charge at Sunshine Development Tour
Pooling funds from various employers enables the scheme to benefit 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.
Retirement planning
Ngao Umbrella Pension Scheme is already approved by the Retirement Benefits Authority for Tier 2 contributions as per the NSSF Act 2013. The scheme can also receive Tier 3 contributions.
Britam Asset Managers chief executive Barack Obatsa said the 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," said Mr Obatsa during the launch on Wednesday.
He said 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.
The scheme is ideal for any registered entity with at least one employee.
Britam Asset Managers also target smaller schemes seeking to avoid the operational complexities of running a stand-alone scheme, and employers looking to enjoy the benefits of pooling resources.