Britam launches pension plan for small businesses

Britam Asset Managers Kenya has launched a multi-employer retirement benefits scheme for small and medium enterprises (SMEs).

The scheme, called the Ngao Umbrella Pension Scheme, will pool funds from various employers and manage them collectively to ensure its members benefit from their retirement savings.

By joining the scheme, businesses can bypass the complex and often costly process of registering a stand-alone retirement benefit plan, which is particularly beneficial for small and medium-sized enterprises, which may find registration requirements cumbersome.

The scheme is structured as a standalone provident fund, allowing companies to easily join and comply with its rules for providing retirement benefits to their employees.

Pooling funds from different employers enables the scheme to benefit from economies of scale, resulting in a higher return on investment.

This pooled nature not only ensures cost savings but also allows members to enjoy better investment outcomes driven by diversified investment strategies.

Retirement Planning

The Ngao Umbrella Pension Scheme has been approved by the Retirement Benefits Administration for second-tier contributions under the National Social Security Fund Act 2013. The scheme can also accept third-tier contributions.

Britam Asset Managers chief executive Barack Obatsa said the initiative aims to support businesses in their growth by handling the complex aspects of retirement planning, allowing them to focus on their core business.

“Our goal is to ensure that every worker in Kenya has access to a secure, cost-effective retirement plan, and this scheme is an important step towards achieving that goal,” Mr Obacha said at the launch on Wednesday.

He said that by signing up to the scheme, SMEs can not only improve employee loyalty and retention, but also offer competitive remuneration packages to attract new talent.

This plan is ideal for any registered entity with at least one employee.

Britam Asset Managers also targets smaller schemes that want to avoid the operational complexities of running independent schemes, and employers who want the benefits of pooled resources.