REACH US ON : O20 286 2000    Contact Centre: 0709 912 777 call
callREACH US ON : O20 286 2000    Contact Centre: 0709 912 777

Umbrella Retirement Scheme

The APA Umbrella Scheme is a contributory retirement scheme for participating employers and its employees. The scheme allows for centralisation of duties, thereby reducing the need for employers to become involved in complex governance, trusteeship, investment, custody and administration issues of the scheme. The scheme is registered and regulated under the Retirement Benefits Act and the Income Tax Act

  •  What is the schemes’ objective/purpose?

    • Main purpose of the scheme is to provide a lump sum accumulated retirement benefits to the member/staff or nominated beneficiary in the unfortunate event of death of the member/staff

  •  How can I join the scheme?

    • All employees above 18 years old can join the scheme on completion of necessary application and nomination of beneficiary form

    • Each employee will be issued with a membership certificate with the employer issued with a Master Policy document

  •  How is the scheme funded?

    The scheme is funded through;

    • Employee Contribution
    • Employer Contributions
    • Transfers in (From previous employer(s)
    • Investment returns

  •  What are the benefits accruing from the scheme?

    Withdrawals Benefits :On exit from current employment before attainment of 50 Years (early retirement age), the member is eligible to access 100% of accumulated employee benefit (Contributions + Interest) and 50% of employer benefit

    Ill- Health Retirement Benefits :On exit from current employment due to illness/accident, the member is eligible to access total accumulated benefits (100% of both employee and employer benefits)

    Immigration Benefits:On immigration from Kenya to another country, the member is eligible to access total accumulated benefits (100% of both employee and employer benefits

    Retirement Benefits:On attainment of early retirement age (50 years), the member is eligible to access total accumulated benefits (100% of both employee and employer benefits)

    Death Benefits :On the unfortunate event of death of the member/staff, nominated beneficiaries will be paid the total accumulated benefits (100% of both employee and employer benefits)

  •  What are the tax benefits of the scheme?

    Tax benefits on contributions: Up to Ksh 20,000 per month or Ksh 240,000 per annum of the members’ contribution into the scheme is not taxed at source/Payroll (tax deductible)

    Tax benefits on Lumpsum Pay-outs: Upto ksh 60,000 per annum to a maximum of 10 years (Ksh 600,000) of the members’ accumulated benefit enjoys a tax relief based on years of service

    Tax benefits on Pension Payments:
    • Upto Ksh 300,000 per annum (Ksh 25,000 per Month) of the pension payment (Regular payment at retirement) is tax free

    • Pension payments for members at age 65 and above is not taxed

  •  How are the fund’s invested?

    • Members contribution invested under the APA guaranteed fund that guarantees against erosion/impairment of the value of the members contribution (Value of member benefits will never be lower than the contribution amount)

    • The minimum guaranteed rate of investment returns at 4% (During years of negative market returns members funds are credited with a minimum of 4% returns)

    • The average net investment returns credited to the members is above the industry average returns

  •  How can I confirm my savings balance?

    • A master statement is issued to the employer

    • Each Member is issued with a benefits statement annually showing; Opening Balance + Contributions + Interest = Closing Balance

    • Interim statements issued during the year on members’ request

  •  How long does it take to access my benefits?

    • Exit benefits processed within 4 working days on receipt of all requisite documents

  •  How is the scheme administered?

    • The scheme is administered through an automated web based system–TurnQuest

  •  What fees are charged on my account?

    • There are no administration fees charged on members account

    • RBA levy of 0.2% of members fund value is paid to the regulator annually

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