An Umbrella Retirement Benefits Scheme (Umbrella Pension Scheme) is an arrangement where an independent company (mostly a regulated financial company like a Fund Manager), provides retirement benefits, death benefits, etc. 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 benefit schemes. It has a set of standard rules (Trust Deed and Rules – TDR) which all joining members must comply with. With the ‘ICEA LION Teleka Umbrella Fund’, these employers can have their employees join the pre-existing scheme thereby enjoying a flexible, cost-effective and efficient way of saving towards retirement.
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.
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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.
Our scheme has a common pool of service providers whose costs are shared amongst the various schemes thereby maintaining costs at a minimum.
You as an employer are relieved from managing your employees’ retirement benefits allowing you to concentrate on your core business activities.
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.
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.
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
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
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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
Because of our scheme’s size, your employees get the added advantage of accessing a wider spread of investments in various financial instruments
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
As our member, we regularly update your employees on the status and performance of their retirement benefits
Our robust ICT administration platform ensures that your employees receive communication in a regular and effective manner
Our fund is supported by a stable, financially sound and well managed organization with over 35+ years of experience
Thereafter, they will be expected to remit monthly employee and employer contributions to the scheme’s custodian.
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