East Africa’s leading Insurance Company, Jubilee Insurance Pensions Business last week held an annual general meeting for the pensions clients under the Jubilee Insurance Umbrella scheme. The scheme is a plan that provides a savings vehicle to accumulate a fund for the members upon retirement. The fund enables the employer to facilitate retirement benefits for their employees as well as enjoy tax relief.
The Jubilee Insurance Umbrella Scheme was established under The Retirement Benefits (Occupational Retirement Benefits Schemes) Regulations, 2000 with the unique benefit of easing scheme set up costs and administrative duties The scheme which is valued at Ksh 689 million as at 31st December, 2014 in terms of funds registered a 120 per cent growth in contributions from Ksh 280 million in 2013 to Ksh 365 million in 2014. Speaking during the AGM, Jubilee’s General Manager Pensions Business, David Ogega, said that a saving culture is partly supported by increased employment rates and incomes as well as reduced costs of living in developed economies. “In developing economies like Kenya’s where we are struggling with unemployment and inflation, we have to exercise self-discipline in order to reduce our expenditure and save a substantial amount of our income for investment,” said Ogega.
The scheme is registered under the Kenya Revenue Authority (KRA) and Retirement Benefits Authority (RBA) and hence operates within the requirements set out by the two regulatory bodies.
For one to be a member, the employer completes a proposal form whereas the employees complete an application form. A deed of adherence is then executed by the employer to guide the structure & operations of the scheme. The benefits are paid upon termination of employment services, to beneficiaries in the event of loss of life or upon retirement from service.
Mr. Ogega added that Kenyans’ life expectancy rate has improved due to better health care and improved living standards, however, family support is reducing and people will be more independent in retirement as opposed to the African practice where families took care of their parents at old age. For this reason, it is advisable to take every available opportunity to set aside a fund that will support you in old age.