What is an Umbrella Retirement Benefits Scheme?

An Umbrella Retirement Benefits Scheme (Umbrella Pension Scheme) is an arrangement whereby an independent company (mostly a regulated financial company like a Fund Manager) provides retirement benefits and death benefits amongst others, to members of different participating companies. In an Umbrella Pension Scheme an employer joins the scheme together with other participating employers for the benefit of their employees. These multiple employers invest collectively as one fund thereby enjoying the benefits of a large (pooled) fund. 

The Umbrella Retirement Benefits Scheme provides a practical solution for organizations that are too small to set up and efficiently operate their own occupational retirement benefits scheme. It has a set of standard rules (Trust Deed and Rules – TDR) which all joining members must comply with. With the ICEA LION Umbrella Retirement Benefits Scheme, these employers can have their employees join the pre-existing scheme thereby enjoying a flexible, cost effective and efficient way of saving towards retirement.

Who Is Eligible To Join The ICEA LION Umbrella Retirement Benefits Scheme?

Our ICEA LION Umbrella Retirement Benefits Scheme is open to any employer:

  1. With at least two employees looking to set up a retirement scheme for their employees
  2. With an existing scheme looking to enjoy economies of scale by pooling resources when they join an umbrella scheme
  3. With an existing scheme looking to move from a guaranteed arrangement to a segregated arrangement
  4. Seeking to relinquish management of their scheme to professional managers

 

What Are The Benefits Of The ICEA LION Umbrella Retirement Benefits Scheme To the Employer?

  • Set-Up Costs: You as the employer joins an already established scheme, you do not need to incur the hefty costs associated with setting up a segregated scheme
  • Running Costs: Our scheme has a common pool of service providers whose costs are shared amongst the various schemes thereby maintaining costs at a minimum
  • Reduced Exposure: There are no heavy fiduciary responsibilities assumed by you as an employer because the ICEA LION is well-known, has an experienced board of trustees and is managed by respected industry professionals
  • Enhanced Staff Loyalty & Retention: By offering employees essential benefits, you as the employer are able to retain productive and competent employees, while offering a competitive package to attract new talent
  • Job Specialization: You as an employer are relieved from managing your employees’ retirement benefits allowing you to concentrate on your core business activities
  • Professional Service: Pooling of resources enables your scheme to engage the services of highly professional service providers who would have been out of financial reach for you as a stand-alone occupational scheme
  • Saves Time & Effort: You as the employer joins a fund which is already registered and approved and has an established board of trustees, thereby saving you the time and effort it would have taken to set up the scheme individually
  • Diverse Product Range: Through our scheme, you as the employer can optionally offer your employees other embedded risk benefit products over and above the retirement benefits such as death, group life and disability covers
  • Secure Your Employee’s Future: According to the proposed NSSF Act, all employers must contribute (6%) to the National Social Security Fund (NSSF). With an Umbrella Scheme, Tier II contributions can be retained in a registered scheme

 

What Are The Benefits Of The Umbrella Retirement Benefits Scheme To Your Employees?

  • Higher Returns: From participating in a larger pool, your employee’s costs are kept at a minimum allowing them as members, to enjoy cost savings and economies of scale which translate into improved investment returns
  • Diversified Portfolio: Because of our scheme’s size, your employees get the added advantage of accessing a wider spread of investments in various financial instruments
  • Peace of Mind: Member retirement funds are managed by our independent retirement fund professionals who are accountable and are tasked with ensuring that the umbrella fund is compliant with all relevant legislation. We also commit to delivering value to our members
  • Regular Updates: As our member, we regularly update your employees on the status and performance of their retirement benefits
  • Connectivity via ICT: Our robust ICT administration platform ensures that your employees receive communication in a regular and effective manner 
  • Security: Our fund is supported by a stable, financially sound and well managed organization with over 35+ years of experience

Why Choose ICEA LION’s Umbrella Retirement Benefits Scheme?

  • 35+ Years Experience: ICEA LION Asset Management is the first privately owned investment company in Kenya with over 35 years’ experience in management of retirement and benefit schemes, Unit Trusts, insurance companies’ assets and private investor assets
  • Flexibility: Our ICEA LION Umbrella Retirement Benefits Scheme is a Defined Contribution Pension Fund where the employer enjoys the flexibility to adjust the proportion of contribution by both the employer and employee as guided by their employment and remuneration policies
  • Choice of Fund Structure: As the sponsor of the scheme, employers have the right to choose the type of fund structure i.e. Provident Fund or Pension Fund. A provident fund allows retiring members to access a lump sum payment upon their retirement while a pension fund will require a retiring member to purchase an annuity so that she/he receives monthly pension for a specified period of time
  • Regulated: The scheme is registered and regulated by the Retirement Benefits Authority (RBA) and the Kenya Revenue Authority for tax exemption purposes

Who Are ICEA LION’s Service Providers?

  • Fund Manager: ICEA LION Asset Management Ltd
    • Implements the Investment Policy of the scheme and constructs and maintains the investment portfolio
    • Responsible for the profitability and sustainability of the scheme

  • Custodian:  Standard Chartered Bank Securities
    • Responsible for the safekeeping of all security ownership documents and funds
    • Responsible for the settlement of orders as per the fund manager’s instructions
  • Administrator: Kingsland Court Benefits Services Ltd
    • Responsible for the safekeeping and update of all member records
    • Responsible for the calculation of benefits to members retiring or exiting the scheme

  • Trustee: Wealth Financial Services Ltd
    • Responsible for the preparation of the Investment Policy Statement
    • Manages, supervises and administers the scheme for the benefit of members in accordance with the Trust Deed & Rules (TDR) and regulations
    • Ensures the interests of the members are protected in terms of the Trust Deed & Rules (TDR) and in accordance with the Retirement Benefits Act and Regulations
    • Oversees the appointment of all service providers to the scheme
    •  Prepares and issues member statements
  • Auditors: Deloitte

 

    • Audit the schemes’ books and give a professional opinion on them
    • Present their audited reports to members during the Annual General Meeting (AGM)

How Does An Organization Join ICEA LION’s Umbrella Retirement Benefits Scheme?

  1. An employer wishing to join the scheme will first need to familiarize themselves with the Trust Deed and Rules (TDR) which sets all the terms and conditions for the member sponsors (employers)
  2. The employer then joins the ICEA LION Umbrella Retirement Benefits Scheme by duly completing the Deed of Adherence. At a minimum the Deed of Adherence shall define:
  • Normal retirement age
  • Additional benefits set out in the General Rules of the Umbrella Scheme
  • Access to the employers’ portion of the benefits by way of lump sum or purchase of annuity i.e. provident fund or pension fund.
    Thereafter, they will be expected to remit monthly employee and employer contributions to the scheme’s custodian. 

Now that you understand the basics of our ICEA LION Umbrella Retirement Benefits Scheme and would like to invest with us; click here to request a call back or call us on +254 719 071 999. 

 

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