A pension schemes can provide protection in the form of lump sums and pensions to dependants in the event of a member’s death; the pension schemes goes a long way in helping reduce dependency ratio by promoting better financial security among members. In order to encourage pension schemes, the Kenya Revenue authority provides tax relief on contributions made to pension schemes and the growth in their investments.
Employers who have a pension scheme for its employees can benefit from increased productivity as a pension plan is a promise of better financial health for employees during retirement and in a tax-optimized pension plan, the employer will not be subject to payroll taxes on contributions made to employees.
THE MONARCH TRUST FUND
The Monarch Trust fund can be compared to a safe deposit box that holds valuable items, for the benefit of loved ones or causes.
The fund can be used to consolidate all the benefits that are payable to a deceased member to take care of his or her remaining dependants.
It is a legal arrangement whereby a person or an entity (known as a trustee) holds property as its legal owner, not for their own benefit, but for the benefit of one or more beneficiaries.
It is essential that the transfer is gratuitous; otherwise the transaction takes on the characteristics of some other legal entity.
Depending on the need, the Trust Fund can be set up as an irrevocable trust or revocable trust.
An annuity is a contract between you and the Monarch Insurance Company in which you make a lump-sum payment or series of payments and, in return, obtain regular disbursements beginning either immediately or at some point in the future.
The goal of annuity is to provide a steady stream of income during retirement. Funds accrue on a tax-deferred basis.
Annuities come in three main varieties – fixed, variable and indexed – that each has their own level of risk and pay-out potential. Fixed annuities pay out a guaranteed amount based on the balance of your account.
OTHER PENSION SCHEMES
Individual Pension Plan
The Monarch Insurance Personal Pension Plan is a savings plan tailor-made to allow individuals who are not having a retirement plan or who want to secure their retirement. By making regular contributions into an interest-bearing fund, you build your retirement fund while taking advantage of the tax-deductible benefits on your contributions and your investment income.
The Monarch Umbrella Retirement Benefits Scheme
This scheme allows for participation by multiple, unrelated employers to adhere into a single pension scheme. They are popular among organizations due to their cost-effective and “hands-free” nature.
This scheme advantageous as compared to the occupational scheme since fewer procedures and paperwork are required.
Pension Scheme Administration Services
At Monarch Insurance, we offer an array of customized administration services that are benchmarked on best international practice standards and that are highly client-driven to provide the unique needs of our service offering to our clients. These range from back-office support to fully equipped administration and Consulting Department.