BRITAM PENSION TRANSFERS!

About BRITAM

British American Insurance Company (K) Ltd, a fully owned subsidiary of British American Investment Company, is one of the leading providers of Guaranteed Funds in the Retirement Benefits sector. The company was founded in 1920 in the Bahamas and established in Kenya in 1965. We are currently managing over 300 Retirement Schemes with a total annual contribution of over Kshs. 2 Billion. Our Retirement Benefits Fund stands at over Kshs. 9 Billion while the company’s total asset base stood at over Kshs. 46 Billion as at 30^th June, 2014.

 

Dear Reader,

• All you need to do is to fill a Britam IPP (Individual Pension Plan) Application form, attach a copy of PIN and ID and pay the initial 500/= minimum either by cheque or any other means. 
• Give authority to the trustees of the former scheme to transfer your pension dues to Britam. 
• Once the former provider does the transfer, it is important to also get the transfer worksheet so that we can identify the money when it comes in and also post it correctly in your account

 

The Key Objectives of A Personal Pension / Provident Plan

 

1. To provide self employed or employees in organizations that do not operate occupational pension scheme, with an opportunity to save regularly for a reliable and long-term retirement Income.
2. To enable self employed or employees in organizations that do not operate occupational pension scheme to take advantage of the generous income tax relief available to members of a registered retirement scheme.
3. To enable former members of an occupational scheme to transfer their deferred benefits giving them more direct control of their retirement planning, with an opportunity to continue making further contributions into the scheme.

Key Benefits

 

1. Tax deductible contributions: The monthly contribution is tax deductible at source i.e. your contribution will be deducted from your gross pay before P.A.Y.E is computed. The current maximum tax deductible contribution is Kshs.20, 000.00 per month.
2. Employer Contribution: An Employer of the policy holder may also contribute and claim tax relief on the same as long us the maximum tax deductible limit of Kshs.20, 000.00 per person is not exceeded.
3. Tax exempt investment income: The interest earned is exempted from tax in full.
4. Compound interest: Compound interest accrues on the contributions received, leading to a faster accumulation of your fund.

    

 TEN YEARS DECLARED INTEREST RATE

YEAR	DECLARED INTEREST
2003	10.60%
2004	7.50%
2005	10.25
2006	18.00%
2007	10.50%
2008	6.00%
2009	9.00%
2010	15.00%
2011	6.00%
2012	16.00%
2013	16.00%
2014	16.00%

 

 

1. Portability: Your Personal Retirement Plan is your own property. It is therefore not affected by changes in employment. The member is free to continue with the scheme after leaving the current employer and enjoy all the benefits of the scheme.

 

1. Guaranteed Capital and Interest:

 

1. BRITAM guarantees the capital (member contribution) against any form of reduction.
2. BRITAM also guarantees that the interest rate shall not fall below 5%.

 

 

1. Tax Free Withdrawal Benefits

 

Currently, a plan holder can cancel the policy upon leaving employment and obtain a refund of the accrued value (employee contribution plus maximum of 50% of employer contribution where applicable) net of any applicable withholding tax. The remaining 50% of employer contribution, if any, remains ‘locked’ in until retirement age.

The law allows a tax free withdrawal benefit equal to Kshs. 60, 000.00 per year of membership, up to a maximum of Kshs.600, 000.00.

 

Tax exempt retirement Benefits: Upon Retirement, the client may opt for:

1. Pension Fund Scheme:
   1. 1/3 of the accrued value on attainment of retirement age can be commuted (paid as a single lump sum) out of which Kshs. 600, 000.00 is tax free.
   2. The balance of the accrued value must be taken as a monthly pension (this depends on the prevailing annuity rates applicable as at the date of retirement) guaranteed for five or ten years and payable thereafter for life.

• Monthly Annuity (Pension) is tax free after age 65.

 

1. Provident Fund Scheme:

In this case the client will receive the entire amount accrued (as single a lump sum) out of which a maximum of Kshs. 600, 000 is tax free.

 

 

1. Charges
2. i) Administration fee equivalent to 1.5% of annual contribution (free in the 1^st year of contribution to 31^st of December)

 

1. ii) RBA levy of 0.2% of the fund per year

 

1. BRITAM as the scheme sponsor will meet the expenses of the scheme.

 

1. Other Benefits

Following the RBA gazette notice of June 2009 on the relevant RBA rules, members are free to use up to 60% of the accumulated funds to access a mortgage facility. Britam has developed a special product in this respect in conjunction with Housing Finance.

 

1. What do you need to join the scheme?

FOR MORE INFORMATION ON PENSION TRANSFERS, CONTACT,

Financial Advisor- Gallin Wekesa, 0712-870-447, gallywexa@gmail.com